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HAYS PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2011

HAYS PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2011

STRONG FINANCIAL PERFORMANCE DRIVEN BY EXCELLENT GROWTH IN THE INTERNATIONAL BUSINESS

Year ended 30 June                                                                                                       Actual     LFL*

(In &pound's million)                                                                                   2011     2010   growth   growth

Net fees                                                                                           672.1     557.7       21%       18%

Operating profit (before exceptional items)**                   114.1     80.5       42%       33%

Cash generated by operations***                                         97.3     78.1       25%        

Profit before tax (before exceptional items)**                                  106.6     71.1       50%        

Profit before tax                                                                          110.7     29.7     273%        

Basic earnings per share (before exceptional items) **   5.19p     3.25p       60%        

Basic earnings per share                                                        5.69p     0.48p   1,085%        

Dividend per share                                                                  5.80p     5.80p         -        

All numbers are from continuing operations only.

Highlights

&middot Strong International performance driving Group net fee growth of 18%* and operating profit growth of 33%*

&middot Continued diversification of the business with 64% of Group net fees generated outside the UK

&middot Excellent performance in Asia Pacific with 30%* net fee growth

 - Australia & New Zealand net fees up 27%*, with exceptional 51%* growth in Asia

&middot Excellent performance in Continental Europe & Rest of World division with 33%* net fee growth

- Division operating at record levels driven by 37%* growth in Germany, 60%* growth in Brazil and a further 14 countries growing net fees by more than 20%*

&middot UK net fees down 1%, with 19% growth in private sector net fees offset by 35% decrease in public sector

Actions taken to reduce cost base and defend profitability going forward

&middot Continued investment in the International business with 27% increase in consultant headcount and 12 new offices opened including launch of US and Mexican operations, with Colombia launched in July 2011

&middot Good cash performance with working capital increase driven by growth in temporary placement net fees

&middot 60% growth in basic earnings per share** to 5.19p with full year dividend unchanged at 5.80p

Commenting on these results Alistair Cox, Chief Executive, said:

"This is a strong set of results with operating profits up by 42%**.  Our International performance was excellent, delivering 31%* net fee growth with the majority of our overseas operations trading at record levels. We have invested heavily in those businesses and will continue to do so, where market conditions remain appropriate, as the long term structural growth opportunities are excellent. Our strategy of international diversification is delivering returns and two thirds of our Group's net fees are now generated outside the UK.

The UK market has been tougher, particularly as recruitment activity in the public sector has dropped significantly over the year. The UK private sector grew strongly in the first half but growth slowed as the year progressed. Consequently, we took early action to both reduce costs as well as focusing our resources on those areas offering the best opportunities.

Whilst we remain mindful of the continuing economic and fiscal uncertainty around the world, we continue to see good levels of momentum across most of our markets. In Asia Pacific we continue to see good growth in Australia & New Zealand and strong growth in Asia. In Continental Europe & Rest of World growth remains strong across the division, led by our German business. In the UK we have seen slowing levels of growth in the private sector business, with continued tough but broadly stable markets in the public sector. Looking ahead, we remain focused on taking advantage of the many opportunities available for Hays to grow a more profitable and diversified business."

* LFL (like-for-like) growth represents organic growth of continuing activities at constant currency. There was one less trading day in 2011 versus 2010.

** 2011 numbers are presented before an exceptional credit of &pound4.1 million and 2010 numbers are presented before an exceptional charge of &pound41.4 million.

*** 2011 numbers exclude cash impact of exceptional items of &pound15.4 million paid in the year and 2010 numbers exclude cash impact of exceptional items of &pound4.1 million paid in the year.

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