Hays Total Comparable 2Q Growth In Net Fees 21%, Outlook Remains Good

Hays PLC (HAS.LN), the recruitment firm, said Thursday total net fees for the quarter ended Dec 31 2010 were up 21% driven by strong performances in Asia Pacific and Continental Europe & Rest of World divisions, adding that its outlook remains good across nearly all of its markets.

MAIN FACTS:

-Comparable growth in net fees for the quarter ended Dec 31 2010 by region:

*Asia Pacific up 36%.

*Continental Europe & Rest of World up 37%.

*United Kingdom & Ireland up 1%.

-Comparable growth in net fees for the quarter ended Dec 31 2010 by segment:

*Temporary up 7%.

*Permanent up 42%.

-Solid momentum in Australia with encouraging pick-up in temporary placement net fees during the quarter.

-Excellent net fee growth in Germany of 47% versus prior year and now operating back above pre-recession levels.

-Overall stability in the U.K. with strong net fee growth of 28% in private sector markets versus prior year, offset by tougher conditions in the public sector down 38% versus prior year.

-Ongoing investment in the International business with consultant headcount increased by 6% during the quarter.

-Launched operations in Mexico and the United States.

-Group's performance in the quarter has been in line with the Board's expectations and over the six months to December 2010 has continued to achieve operating profit growth at broadly twice the level of net fee growth.

-Net debt increased to around GBP125 million at the end of the period.

-Shares closed Wednesday at 127.90 pence, valuing the Company at GBP1.77 billion.

-By Jana Weigand, Dow Jones Newswires; 44-20-7842-9314; [e-mail]