Press releases
Preliminary Results for Year to 30 June 2007
04 Sep 2007
OUTSTANDING PERFORMANCE INTERNATIONALLY AND EPS UP 17%***
| Year ended 30 June £’s million |
2007 | 2006 | Actual growth | LFL* growth |
|---|---|---|---|---|
| Net fees | 633.6 | 538.2 | + 18% | + 17% |
| Profit from continuing activities | 216.1 | 193.0 | + 12% | + 13% |
| Cash from operations | 232.1 | 183.1 | + 27% | |
| Profit before tax*** | 211.7 | 192.5 | + 10% | |
| Basic earnings per share*** | 10.19p | 8.69p | + 17% | |
| Dividend per share | 5.00p | 4.35p | + 15% |
- Strong like-for-like net fee and operating profit growth of 17% and 13% respectively*
- Outstanding International performance with net fees up 37%* and operating profit up 38%*
- Improved United Kingdom & Ireland performance in the second half
- 30% increase in net fees from permanent business with excellent performance across the Group*
- 17% increase in earnings per share*** and 15% increase in full year dividend
- 25% increase in recruitment consultants in the year**
- Excellent operating cash from operations of £232.1 million (107% of operating profit)
* LFL is like-for-like growth which represents organic growth of continuing activities at constant currency. No adjustment is made for the
one less trading day in 2007
** increase in consultants is shown on a closing basis,comparing 30 June 2007 versus 30 June 2006 on a like-for-like basis, which
excludes the impact of acquisitions and disposals
*** continuing activities only
Commenting on these results, Denis Waxman, Chief Executive of Hays, said:
"These results show strong growth in net fees, operating profit and earnings per share. The highlight is our outstanding performance internationally where we grew net fees by 37% to £216.5 million and operating profits by 38% to £75.3 million*. The International business has increased its share of Group net fees from 16% four years ago to 34% this year. Worldwide we now have a network of 7,753 staff operating from 376 offices in 25 countries across 17 specialisms.
Following the actions taken in the first half of the year, performance improved in the United Kingdom & Ireland in the second half, despite continuing challenging conditions in the temporary market, primarily in the public sector.
Across all the regions in which we operate, we continue to see strong demand for our specialist recruitment services. Since the start of July, net fees have been ahead of the comparable period last year by 19% on a like-for-like basis*. By region, net fee growth on a like-for-like basis* was 11% in the United Kingdom & Ireland, 35% in Asia Pacific and 38% in Continental Europe & RoW. Although there remains some pressure on our United Kingdom temporary margin, overall, the Board is confident in its outlook for the year.
On a personal note, this is my final results announcement after leading Hays’ specialist recruitment business for 38 years. I am very proud of what Hays and our people have achieved and I leave with absolute confidence that Hays is well positioned to take advantage of the tremendous opportunities available worldwide in the specialist recruitment markets. I will miss the people and the business enormously and wish them every success in the future."
Date of Interim Management Statement:
For the first time, as required by the UK Listing Authority’s new Disclosure and Transparency rules, we
expect to issue an Interim Management Statement for the quarter ending 30 September 2007 on 11 October
2007.
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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