Press releases
Interim results for the 6 months ended 31 December 2006
27 Feb 2007
OPERATING PROFIT UP 11%* AND OUTSTANDING PERFORMANCE INTERNATIONALLY
| 6 months ended 31 December £’s million | 2006 | 2005 | Actual growth | LFL* growth |
|---|---|---|---|---|
| Net fees | 297.2 | 259.1 | + 15% | + 14% |
| Profit from continuing activities | 102.2 | 94.1 | + 9% | + 11% |
| Cash from operations | 98.6 | 83.9 | + 18% | |
| Profit before tax** | 100.3 | 94.6 | + 6% | |
| Basic earnings per share** | 4.73p | 4.16p | + 14% | |
| Interim dividend per share | 1.60p | 1.45p | + 10% |
- Good like-for-like net fee and operating profit growth of 14% and 11% respectively*
- Outstanding International performance with net fees and operating profit up 36%*
- Profits flat in the United Kingdom & Ireland due to reduction in temporary business margin
- 26% increase in net fees from permanent business with excellent performance across the Group
- 14% increase in earnings per share** and 10% increase in interim dividend per share
- Entry into Japan and Pharmaceutical sector through James Harvard acquisition for initial £24 million
* LFL is like-for-like growth which represents organic growth of continuing activities at c onstant currency. No adjustment is made for the one less trading day in 2006
** continuing activities only
Commenting on these results, Denis Waxman, Chief Executive of Hays, said:
"These results show good growth in net fees, operating profit and earnings per share. The highlight is our outstanding performance internationally where we grew net fees by 33% (36% on a like-for-like basis*) to £98.5 million and operating profits by 30% (36% on a like-for-like basis*) to £34.7 million. The International business has increased its share of Group net fees from 22% three years ago to 33% this period. Our success underlines the excellent market opportunities available worldwide to Hays and the strength of our business model. We are continuing to invest internationally, primarily organically, to maximise our opportunities in these markets.
There was a mixed performance in the United Kingdom & Ireland. The permanent placement business performed strongly generating good net fee growth of 18%. However, challenging conditions in the temporary market, primarily in the public sector, led to margin reduction and low volume growth in this segment. The investment in consultants during the period in the United Kingdom & Ireland positions us for an improved performance in the second half of the financial year.
Since the start of January, net fees have been ahead of the comparable period last year by 16% on a like-for-like basis*. By region, net fee growth on a like-for-like basis* was 9% in the United Kingdom & Ireland, 29% in Asia Pacific and 36% in Continental Europe & Rest of World. Overall, the Group’s performance for the year ending 30 June 2007 continues to be in line with the Board’s expectations".
Enquiries:
| Denis Waxman | Chief Executive | Hays plc | + 44 (0)20 7628 9999 |
| Paul Venables | Finance Director | ||
| Martin Abell | Investor Relations | ||
| Giles Croot / Gill Ackers | Brunswick | + 44 (0)20 7404 5959 |
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