14/12/06
Hays plc, the Specialist Recruitment Group, will announce its results for the six months ending 31 December 2006 on 27 February 2007.
Since the announcement of the preliminary results in September, the business has continued to generate good levels of growth. First half headline net fees are expected to be approximately 15% above the same period last year. On a like-for-like basis *, first half net fee growth is expected to be approximately 14%.
The business has seen contrasting conditions between the market for temporary staff and the market for permanent staff. As a result, the Group is expecting strong net fee growth in the permanent market of approximately 27%, and modest net fee growth of approximately 5% in the temporary market in the first half year, versus the same period last year.
In the UK & Ireland, headline net fees for the first half are expected to be approximately 8% ahead of the same period last year (approximately 7% on a like-for-like basis *).
The international operations have continued to produce excellent growth. In Continental Europe & Canada, headline first half net fees are expected to be approximately 43% ahead of the same period last year (approximately 44% on a like-for-like basis *). Performance was particularly strong in Germany, France, the Netherlands, Spain and Canada.
In Asia Pacific, headline first half net fees are expected to be approximately 23% ahead of the same period last year (approximately 27% on a like-for-like basis *).
We have seen some further erosion in Group margins from that achieved in the second half of the year ended 30 June 2006. This has been as a result of a reduction in our temporary business margin, primarily in our UK public sector activities.
Overall, the Group’s performance for the year ending 30 June 2007 continues to be in line with the Board’s expectations.
The Company has continued with its share buy-back programme. Since 1 July 2006, the Company has purchased 11.2 million shares at a cost of £15.4 million.
Hays intends to enter into an irrevocable non-discretionary arrangement to enable the repurchase of its own shares during its close period. Any share purchases will be effected within certain pre-set parameters, and in accordance with both the Company’s general authority to repurchase shares and the listing rules.
*Note : like-for-like is organic growth at constant currency. It does not adjust for the number of trading days in the period.
