Hays PLC
7 June 2001
TRADING STATEMENT
Hays plc issued a Group trading update today 7 June ahead of the financial
year end on 30 June. The preliminary results for the year ending 30 June
2001 will be announced on 10 September.
Since the announcement of interim results on 5 March 2001, we have witnessed
a slow-down in the level of economic activity in a number of our markets.
This will lead to lower than anticipated profits in the second half and
consequently for the full year. The Board anticipates nonetheless that Group
profits before tax and exceptional items for the full year will exceed the
prior year. Provided the economic outlook does not weaken further the Group
expects to return to more normal organic growth rates in the year to 30 June
2002.
Logistics' profits will be significantly below our previous expectation due
to current competitive pricing pressure and lower volumes primarily in the
Telecoms and Automotive sectors. We have taken appropriate action to reduce
costs. On 4PS we remain pleased with the progress we are making to win large
supply chain management contracts.
In Commercial we are making satisfactory progress overall although our losses
in Spain have continued and our Mail business in the U.K. has been adversely
affected by the slow-down in the economy.
Our Personnel Division continues to strengthen its market position through
organic growth. Results are anticipated to be in line with market
expectations.
A wide range of actions are being implemented to improve focus, reduce costs
and increase returns. The full year results are therefore expected to
include exceptional operating costs of circa £20 million in respect of
reorganisation costs and impairment of assets, net of profit on the sale of
properties.
Longer term Outlook
Hays is a leader in the provision of integrated solutions, which span supply
chain, business process and HR management. We are well placed to exploit the
growing trend across Europe towards the outsourcing of business critical
processes.
Enquiries:
Graham Williams Executive Director, 01483 302203
Hays plc
Jon Coles Brunswick 020 7404 5959
Corinne Daniels Brunswick 020 7404 5959
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