Press releases
Results for the 6 months ended 31 December 2008
26 Feb 2009
Excellent cash flow performance
| 6 months ended 31 December Unaudited (In £’s million) |
2008 | 2007 | Actual growth |
LFL* growth |
|---|---|---|---|---|
| Net fees | 383.7 | 374.8 | 2% | (2)% |
| Operating profit from continuing operations | 105.1 | 125.0 | (16)% | (20)% |
| Cash generated by operations | 137.6 | 105.0 | 31% | |
| Profit before tax | 100.8 | 122.7 | (18)% | |
| Basic earnings per share | 5.15p | 6.05p | (15)% | |
| Dividend per share | 1.85p | 1.85p | - |
Financial highlights
- Challenging market conditions resulted in a fall in Group net fees and operating profit*
- Excellent operating cash flow of £137.6 million, up 31%
- Strong balance sheet position with net debt reduced to £54.6 million
- Interim dividend maintained at 1.85p
Operational highlights
- Successful growth of the International business, now representing 50% of Group net fees
- 9%* reduction in permanent placement net fees offset by resilient temporary placement performance
- Early and continued action to reduce costs in weakening markets
- Market share gains in public sector, now representing 21% of Group net fees
- Implementation of key IT projects continues on schedule
*LFL is like-for-like growth, which represents organic growth of continuing activities at constant currency. No adjustment is made for the one additional trading day in 2008.
Commenting on these results, Alistair Cox, Chief Executive of Hays, said:
“Despite the increasingly tough markets we operate in, the early and decisive actions we have taken to defend and develop our business have allowed us to deliver a resilient performance. Where we have seen a slowdown in demand we have reacted quickly to reduce our cost base, particularly in the UK and Australia. At the same time, our focus on cash enabled us to generate £137.6 million of operating cash in the half year, up over 31% on last year.
We are also seeing the benefits of our strategy of growing market share, focusing on more defensive sectors, and continuing to develop our international network. Over the last year, we have invested resources in the public sector market where we have delivered 12% net fee growth in the period. We have strengthened our services in the major corporate account sector, resulting in a number of contract wins that strengthen our relationships with several blue chip organisations. Selective investment overseas included new offices in Continental Europe, Australia and entry into India. We also achieved good growth in a number of our international businesses, including Germany where we increased net fees by 35%*.
Turning to the current environment, demand for permanent placements is falling at an increasing rate in all of the countries in which we operate. Demand for temporary placements is relatively resilient in most parts of our business following a reasonable level of re-engagement of temporary workers after the Christmas holidays.
Looking ahead, our strategy is unchanged. We will continue to take decisive action to defend and develop our business in challenging market conditions. The strength of the balance sheet, our balance of permanent and temporary placement business, our international and sectoral diversification, and significant presence in the public sector stand us in good stead”.
Enquiries
| Hays plc | ||
| Paul Venables | Finance Director | + 44 (0) 20 73832266 |
| Martin Abell | Investor Relations | + 44 (0) 20 73832266 |
| Brunswick | ||
| Gill Ackers | + 44 (0) 20 7404 5959 | |
| James Rossiter |
Results presentation webcast
The half year results presentation at 8:00am GMT on 26 February 2009 will be available as a live webcast on our website, www.haysplc.com, and a recording will also be available on our website from 1:00pm GMT.
Reporting calendar
| Interim management statement for quarter ending 31 March 2009 | 9 April 2009 |
| Trading statement for quarter ending 30 June 2009 | 9 July 2009 |
| Full year results for year ending 30 June 2009 | 3 September 2009 |
Note to editors
Hays plc is the leading global specialist recruitment group. It is market leader in the UK and Australia, and one of the market leaders in Continental Europe. The Group employs 8,294 staff operating from 380 offices in 27 countries across 17 specialisms. For the year ended 30 June 2008:
- - the Group had revenues of £2.5 billion, net fees of £786.8 million and operating profit before exceptional items of £253.8 million;
- - the Group placed around 80,000 candidates into permanent jobs and around 300,000 people into temporary assignments;
- - the temporary placement business represented 49% of net fees and the permanent placement business represented 51% of net fees.
