Interim Management Statement

HAYS PLC

INTERIM MANAGEMENT STATEMENT
QUARTER ENDED 31 MARCH 2011

7 April 2011


Financial summary

Growth in net fees for the quarter ended 31 March 2011 (Q3)        growth       
(versus the same period last year)                            actual     LFL*
                                                                      
By region                                                              
      Asia Pacific                                               37%      23%
      Continental Europe & Rest of World                         32%      35%
      United Kingdom & Ireland                                  (2)%     (2)%
      Total                                                      18%      16%

By segment                                                             
      Temporary                                                  10%       8%
      Permanent                                                  30%      27%
      Total                                                      18%      16%

* LFL (like-for-like) growth represents organic growth at constant currency.


Highlights

· Group net fee growth of 16%* against prior year driven by continued strong
  performance of our International business

· Strong net fee growth of 21%* in Australia & New Zealand

· Excellent and broadly based growth in Germany with net fees up 39%*

· Overall net fee stability in the UK with strong net fee growth of 18% in
  private sector markets, offset by continued tough conditions in the public
  sector down 37%

· Continued consultant headcount investment in the International business,
  increasing 7% in the quarter
 

Commenting on trading for the quarter ended 31 March 2011, Alistair Cox, Chief
Executive of Hays plc, said:

"We have had another quarter of strong and broad based growth led by our
International business which grew its net fees by 29%* versus prior year. We
recorded excellent growth in Continental Europe, South America and Asia, with
another quarter of strong growth in Australia. Overall, 21 countries grew net
fees by more than 20%*. In the UK, net fees remained broadly stable overall
with strong growth in the private sector offset by tough public sector markets.

Our operations in Queensland, Christchurch and Tokyo have each faced natural
disasters of unprecedented scale, but the response and fortitude of our
employees there has been a credit to them and to our business. Despite these
events the outlook remains positive in nearly all of our markets outside the UK
public sector and we continue to invest in consultant headcount, particularly
in the International business which grew headcount by 7% in the quarter. The
Group now generates nearly two thirds of its fees from the International
business.  This extensive platform, together with the investment made across
the business, provides the Group with the basis from which to capitalise on the
long term structural growth opportunities in our markets."


Group

In the quarter ended 31 March 2011, Hays, the leading global professional
recruitment group, increased net fees by 18% (16% on a like-for-like basis*)
against prior year. The combined impact of the natural disasters in Queensland,
Christchurch and Japan is estimated to have reduced Group net fee growth by 1%*
this quarter (APAC division impacted by 3%*). Net fees from the temporary
placement business increased by 8%* and net fees from the permanent placement
business increased by 27%*, as the Group continued to see good momentum across
most of its markets.

The Group's underlying temporary placement margin** remained stable and in line
with the previous quarter. The Group's consultant headcount increased by 3%
during the quarter, driven by ongoing investment in Australia, Asia,
Continental Europe and South America, with headcount decreasing slightly in the
United Kingdom. During the quarter the Group added a new office in Delhi,
India, as the Group continues to build its International platform for growth.
 

Asia Pacific

In Asia Pacific we recorded net fee growth of 23%*. In our market leading
Australia & New Zealand business net fees increased by 21%*, with permanent
placement net fee growth of 21%* and temporary placement net fee growth of 21%
*. The combined impact of the Queensland floods and Christchurch earthquake
reduced net fee growth in Australia & New Zealand by 2%* this quarter and these
are together expected to reduce net fees and operating profits by £1-2 million
in the second half of the year.  Despite these disruptions overall net fee
momentum continues to be good, with broad based growth across regions and
sectors, particularly in Banking and Resources & Mining.  

Asia, which accounts for 13% of the division's net fees, achieved net fee
growth of 43%*. Performances in China, Singapore and Hong Kong were excellent
with each achieving net fee growth in excess of 65%*, with record performances
in China and Singapore. The tragic events following last month's earthquake in
Japan have significantly impacted our operations there, which are largely based
in the Tokyo district. We therefore expect that this business, which generated
£6.9 million of net fees and £2.0 million of operating profit in the six months
to December 2010, will be materially affected in the coming months. The impact
of the earthquake reduced net fee growth in the Asia region by 5%* this quarter
and we expect that net fees and operating profit will be reduced by around £2
million versus previous expectations in the second half of the year.

Consultant headcount increased by 5% during the quarter, with headcount up 10%
in Asia, as we continue to invest to ensure we capitalise on the opportunities
for growth we are seeing across the division.
 

Continental Europe & Rest of World ('RoW')

In Continental Europe & RoW we recorded net fee growth of 35%*. Our German
business had another excellent quarter with net fee growth of 39%* and
continues to see strong momentum. Growth was broadly based across our
contracting, temporary placement and permanent placement business, and across
all of the sectors in which we operate. Most other countries in the division
continued to see improving market conditions with 16 countries recording net
fee growth above 20%*. In particular we saw excellent performances in Brazil,
the Netherlands, Spain, Italy, Poland, Austria, Russia and Denmark which each
achieved net fee growth in excess of 40%*, with record net fee performances in
Brazil, Belgium, Italy, Russia and Denmark during the quarter.

Consultant headcount increased by 8% during the quarter as we continue to
invest across the division.
 

United Kingdom & Ireland

In the United Kingdom & Ireland net fees decreased by 2% and overall we have
again seen broadly stable net fee trends. We have continued to achieve strong
net fee growth in the private sector business, which increased by 18%, notably
in our Construction & Property, IT, Legal, Corporate Accounts and City-related
businesses. Our public sector business, which represents 24% of the division's
net fees, continues to face difficult market conditions with net fees
decreasing by 37%. This business is now down around 50% from peak levels.

Consultant headcount decreased by 1% in the quarter and we expect this to
remain broadly stable through the next quarter, as we continue to balance the
private sector recovery with difficult public sector markets.
 

Cash flow and balance sheet

Net debt increased modestly to around £130 million at the end of the period (31
December 2010: £125.7 million). We expect net debt to remain at a broadly
similar level through the next quarter.
 

OFT investigation

On 1 April 2011 the Competition Appeal Tribunal ('CAT') announced its judgement
in respect of Hays' appeal against the level of the fine imposed by the Office
of Fair Trading ('OFT') in September 2009. The CAT reduced the fine from £30.36
million to £5.88 million. This decision represents the outcome of previously
reported proceedings which began in June 2006. The full amount of the fine has
already been provided in our 2010 accounts.
 

* LFL (like-for-like) growth represents organic growth at constant currency.

** The underlying temporary placement gross margin is calculated as temporary
placement net fees divided by temporary placement gross revenue and relates
solely to temporary placements in which Hays generates net fees and
specifically excludes transactions in which Hays acts as agent on behalf of
workers supplied by third party agencies.
 

Enquiries

Hays plc                                                                            
Paul Venables          Finance Director               + 44 (0) 20 7383 2266   
James Hilton           Investor Relations             + 44 (0) 20 7383 2266   
                                                               
Maitland                                                                            
Neil Bennett                                          + 44 (0) 20 7379 5151   
Liz Morley                                                                          
 

Conference call

Paul Venables and James Hilton of Hays plc will conduct a conference call for
analysts and investors at 9:00am United Kingdom time on Thursday 7 April 2011.
The dial-in details are as follows:

Dial-in number                                        [phone] 
Password                                              hays                 
                                                                                
The call will be recorded and available for playback for seven days as follows: 
                                                                                
Replay dial-in number                                 [phone] 
Access code                                           376672#              


Reporting calendar

Trading Update for quarter ending 30 June 2011                      7 July 2011       
Preliminary Results for year ending 30 June 2011                    1 September 2011  
Interim Management Statement for quarter ending 30 September 2011   6 October 2011    


Note to editors

Hays plc (the "Group") is the leading global professional recruiting group. The
Group is the expert at recruiting qualified, professional and skilled people
worldwide, being the market leader in the UK and Asia Pacific, and one of the
market leaders in Continental Europe. The Group operates across the private and
public sectors, dealing in permanent positions, contract roles and temporary
assignments. As at 31 December 2010, the Group employed 7,086 staff operating
from 257 offices in 30 countries across 17 specialisms. For the year ended 30
June 2010:

- the Group reported net fees of £557.7 million and operating profit of £80.5 
  million;

- the Group placed around 50,000 candidates into permanent jobs and around 
  180,000 people into temporary assignments;

- 26% of Group net fees were generated in Asia Pacific, 30% in Continental 
  Europe & RoW and 44% in the United Kingdom & Ireland;

- the temporary placement business represented 58% of net fees and the permanent 
  placement business represented 42% of net fees; and

- Hays operates in the following countries: Australia, Austria, Belgium, Brazil, 
  Canada, China, Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, 
  India, Ireland, Italy, Japan, Luxembourg, Mexico, Netherlands, New Zealand, 
  Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, USA 
  and the United Kingdom.


Cautionary statement

This Interim Management Statement has been prepared solely in compliance with
the Disclosure Rules and Transparency Rules of the UK Financial Services
Authority and is not audited. Statements in this Interim Management Statement
reflect the knowledge and information available at the time of its preparation.
Certain statements included or incorporated by reference within this Interim
Management Statement may constitute "forward-looking statements" in respect of
the Group's operations, performance, prospects and/or financial condition. By
their nature, forward looking statements involve a number of risks,
uncertainties and assumptions and actual results or events may differ
materially from those expressed or implied by those statements.  Accordingly,
no assurance can be given that any particular expectation will be met and
reliance should not be placed on any forward-looking statement.  Additionally,
forward-looking statements regarding past trends or activities should not be
taken as a representation that such trends or activities will continue in the
future. No responsibility or obligation is accepted to update or revise any
forward-looking statement resulting from new information, future events or
otherwise. Nothing in this Interim Management Statement should be construed as
a profit forecast. This Interim Management Statement does not constitute or
form part of any offer or invitation to sell, or any solicitation of any offer
to purchase any shares in the Company, nor shall it or any part of it or the
fact of its distribution form the basis of, or be relied on in connection with,
any contract or commitment or investment decisions relating thereto, nor does
it constitute a recommendation regarding the shares of the Company. Past
performance cannot be relied upon as a guide to future performance. Liability
arising from anything in this Interim Management Statement shall be governed by
English Law. Nothing in this Interim Management Statement shall exclude any
liability under applicable laws that cannot be excluded in accordance with such
laws.