Hays: Interim Results for the 6 months to 31st December 2003
RNS Number:2950W
Hays PLC
09 March 2004
9th March 2004
Hays plc
INTERIM RESULTS FOR THE 6 MONTHS TO 31 DECEMBER 2003
Financial Highlights
* Performance in line with our expectations
* Personnel turnover of #623.2m, up 24% (12% on a like-for-like basis)(1)
* Personnel operating profit(2) of #60.1m, up 12% (6% on a like-for-like basis)
* Mail operating profit stable at #16.3m on turnover up 2%
* Group profit before tax of #83.2m
* Group profit before tax, goodwill amortisation and exceptional items of
#87.9m(3)
* Net debt reduced to #94.5m
* Interim dividend rebased (as previously announced) to 1.0p per share
(1) Percentage change is calculated over the result for H1 2002/03 and
like-for-like percentage change calculated before acquisitions and at
constant exchange rates
(2) Personnel operating profit stated before goodwill amortisation of #6.6m
(2002/03: #2.5m)
(3) Goodwill amortisation of #6.6m and exceptional profit of #1.9m
Operating Highlights
* Increased Personnel operating profit for first time in two and a half years
– Continued gradual recovery in principal markets
– Continued strong growth in Montrose (technical) and Australia
– Return to growth in IT
– Accountancy performed well in regions but South East difficult
– Ascena performed well but Continental European markets challenging
* New mail products launched successfully and showing promising growth
Group Transformation
* Two thirds of Group transformation completed
* #355.0m gross headline consideration realised from disposals to date
* Board actively reviewing options for method and timing of divestment of Mail
Bob Lawson, Chairman, commented:
“We are delighted that after two and a half years of difficult trading
conditions our Personnel business has returned to creditable growth. We grew
operating profit before goodwill amortisation by 6% ona like-for-like basis
despite weak demand in the South East of England and Continental Europe.
Including acquisitions and favourable foreign exchange movements the growth was
12%. We are confident that we have performed well compared to the competition.
We continued to invest in the business adding a further 13 offices in the
period and we are well positioned to capitalise on future opportunities.”
“The new Mail management team has improved and developed the quality of the core
business. They have also successfully launched three new mail products which
we believe offer exciting potential in the deregulating UK mail market.”
“It is only one year since we announced our strategy to transform Hays into a
focussed specialist recruitment and HR services company. In that time we have
completed two thirds of the transformation, having sold substantially all of
our former Commercial and Logistics operations. We have made excellent
progress in disposing of other non-core assets and we are actively reviewing
our options with respect to Mail.”
“The financial performance of Hays Personnel in the period reflected slightly
more favourable economic conditions with net fees growing by 5% on a like-for-
like basis. During January and February comparative year on year growth in net
fees has been sustained at 5-6% with no evidence of any acceleration. We have
not yet seen a strong recovery in the South East of England or in Continental
European markets. Accordingly, our outlook remains cautious but we are well
placed for any future stronger upturn.”
ENQUIRIES:
Colin Matthews Chief Executive Officer, Hays plc + 44 (0)1483 302 203
Denis Waxman Chief Executive Designate, Hays plc + 44 (0)20 7628 9999
John Martin Group Finance Director, Hays plc + 44 (0)20 7628 9999
Jon Coles Brunswick + 44 (0)20 7404 5959
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