14 December 2006
HAYS PLC
TRADING UPDATE
Hays plc, the Specialist Recruitment Group, will announce its results for the
six months ending 31 December 2006 on 27 February 2007.
Since the announcement of the preliminary results in September, the business
has continued to generate good levels of growth. First half headline net fees
are expected to be approximately 15% above the same period last year. On a
like-for-like basis*, first half net fee growth is expected to be approximately
14%.
The business has seen contrasting conditions between the market for temporary
staff and the market for permanent staff. As a result, the Group is expecting
strong net fee growth in the permanent market of approximately 27%, and modest
net fee growth of approximately 5% in the temporary market in the first half
year, versus the same period last year.
Net fee growth by region
In the UK & Ireland, headline net fees for the first half are expected to be
approximately 8% ahead of the same period last year (approximately 7% on a
like-for-like basis*).
The international operations have continued to produce excellent growth. In
Continental Europe & Canada, headline first half net fees are expected to be
approximately 43% ahead of the same period last year (approximately 44% on a
like-for-like basis*). Performance was particularly strong in Germany, France,
the Netherlands, Spain and Canada.
In Asia Pacific, headline first half net fees are expected to be approximately
23% ahead of the same period last year (approximately 27% on a like-for-like
basis*).
Group margins
We have seen some further erosion in Group margins from that achieved in the
second half of the year ended 30 June 2006. This has been as a result of a
reduction in our temporary business margin, primarily in our UK public sector
activities.
Summary
Overall, the Group's performance for the year ending 30 June 2007 continues to
be in line with the Board's expectations.
Share buy-back programme
The Company has continued with its share buy-back programme. Since 1 July 2006,
the Company has purchased 11.2 million shares at a cost of £15.4 million.
Hays intends to enter into an irrevocable non-discretionary arrangement to
enable the repurchase of its own shares during its close period. Any share
purchases will be effected within certain pre-set parameters, and in accordance
with both the Company's general authority to repurchase shares and the listing
rules.
*Note : like-for-like is organic growth at constant currency. It does not
adjust for the number of trading days in the period.
- ends -
Enquiries
Hays plc
Paul Venables Finance Director + 44 (0) 20 7628 9999
Martin Abell Investor Relations + 44 (0) 20 7628 9999
Brunswick
Giles Croot + 44 (0) 20 7404 5959
Conference call
Paul Venables and Martin Abell of Hays plc will conduct a conference call for
analysts and investors at 9:30am United Kingdom time on Thursday 14 December
2006. The dial in details are as follows:
Dial-in number +44 (0) 1452 561 263
The call will be recorded and available for playback for seven days as
follows:
Replay dial-in number +44 (0) 1452 550 000
Access code 3329915#
Note to editors
Hays plc is focused entirely on specialist recruitment with revenues of £1.8
billion per annum. The Group employs 6,410 staff in 352 offices and provides
specialist recruitment services in 824 business units across 20 countries.
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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