Hays Trading Statement
Hays PLC said over overall trading remained in line with its expectations but cautioned that short-term outlook for the business will be tough to predict due to the economic uncertainty.
In a trading statement ahead of its full-year to June 2003 results, the
company said Hays Personnel has continued to perform well, with gross fees in
the second half to date 4 pct ahead of the same period last year, and broadly
consistent with the first half.
It added the proportion of gross fees derived from permanent placements in the second half to date was “slightly” higher than last year and in the first half.
However, it added: “Forecasts of economic conditions and business sentiment are inconclusive and the short term outlook for our business remains difficult to predict accurately”.
The UK Mail business is performing in line with its expectations, though
performance in the French mail business has declined as a result of weak
economic conditions.
The Logistics and IMS businesses have continued to trade in line with its
expectations, though the performance of the BPO business is “disappointing”, it
said.
Turning to its ongoing restructuring, the group said efforts to transform it
into a “focused Personnel” business are progressing. The cash cost of restructuring in the period is likely to be within the 12 mln stg guidance given on March 4. In addition, as part of this process, it is reviewing the carrying value of goodwill and other assets and this is likely to lead to a “material, non-cash” impairment charge, Hays said.
