Hays Share Discussion Threads

[lyntwyn] 07/9/2005 14:13

Merrill yesterday had this to say, which spooked the share price causing relegation.

Merrill Lynch said 2005 results "are slightly ahead" of its own and consensus expectations. It added free cashflow was "strong" at 99.3m, "albeit boosted by a lower than expected cash tax and cash exceptionals". It also highlighted comments that the scale of the share buy back has been raised from "at least 200m" to "at least 300m". However, the broker noted that despite current trading comments that net fee growth has continued to run at 13% in July and August, "the UK appears to be slowing", Merrill said. It also stressed that the 2006 estimated conversion rate will be "slightly lower" than the 35.5% reported in 2005, due to higher pension and employee costs. Merrill therefore reiterated its 'sell' rating on Hays shares. CA Cheuvreux also noted "good results", but added the "UK slowdown is there". "Most earnings upgrades now seem to be behind us", the French broker said. It maintained its 'underperform' rating and 110 pence target on the shares.

[lyntwyn] 07/9/2005 09:37

There have been vague rumours that HAS could be taken over bu US or Euro company since it focussed on personnel. There is more of a chance of that happening now, especially in the current M&A environment. It has been the main reason I have hung on to them. Either way it is still a sound company. I'm not worried about the relegation, as several relegated co's seem to have prospered thereafter. That was already in the price anyway.

edit. have just seen this.
Back in London, Hays paced stocks higher after Morgan Stanley said it
remains a "firm believer in the firm's business model", following yesterday's
full-year results. Hays shares gained 5-1/2 to 129-1/4.
The broker said it was maintaining its 'overweight' rating on the share,
adding that yesterday's 7 pct share price decline provided an attractive entry
point for investors, with 17 pct upside potential to its 148 pence price target. - afx

[johnds] 06/9/2005 20:08

Profits up, net fee growth up 13% for July and Aug and it drops.

That is a good performance and clearly MM's just want to get a quick profit and let us mugs take the pain.

Drooping out of the FTSE and I'd guess out of the £1.20-£1.35 range to around the £1.10.

It will be back but when??

[lyntwyn] 06/9/2005 11:47

The results were better than expected but share price down 4%!! share price down, -looks like bad timing as far as FTSE relegation is concerned.

Hays sees profits ease after disposal of mail unit

The specialist recruitment group reported full year profits down after the sale of the logistics arm but there was record turnover and operating profits for its continuing businesses in the year to June. Pre-tax profits were up an underlying 30% and the dividend is raised. The share buyback programme will continue. More

afx news: Hays was the worst performer amongst blue chips, down 8-1/2
pence at 126-1/2 as investors shrugged off a solid set of full-year results and
focused on the poor outlook in the UK.
Merrill Lynch said 2005 results "are slightly ahead" of its own and
consensus expectations. However, the broker noted that despite current trading
comments that net fee growth has continued to run at 13 pct in July and August,
"the UK appears to be slowing", Merrill said.

Merrill therefore reiterated its 'sell' rating on Hays shares, which are
also looking like being relegated from the FTSE 100 in tonight's reshuffle.

[johnds] 05/9/2005 19:21

Results tomorrow but if they're not good the press say it could be the end of the FTSE 100 for them. What would that do for the share price??

[lyntwyn] 22/8/2005 12:16

Morgan Stanley reiterates 'overweight' & ups target 6 pct to 148 pence - afx


The recent underperformance of shares in Hays offers a good entry point into the stock, according to Morgan Stanley. The broker also hiked its target on the shares to 148p from 130p and the stock rose 0.5p to 132.25p. The broker said it thought the group could maintain sales growth in excess of 10% between 2005 and 2007 due to wage inflation, an increase in consultants and the improving UK jobs market. The shares were rated as an "outperform

[lyntwyn] 12/8/2005 15:44

Downgraded to 'in-line' from 'underperform' by Goldman Sachs on valuation grounds, dealers said. In a note published this morning, the US broker said it believes that staffing companies remain structural growth stories, with blue chip Hays and mid cap peer Michael Page International PLC offering the best exposure by type of market to the sector. However, Goldman Sachs pointed out that the issue is what valuation to place on this exposure. The broker added that at the same point in the last cycle, staffing companies on average traded at 1.2 times the forward looking market multiple, with the better staffing stocks attaining premia of up to 1.5 times. Goldman Sachs noted that Hays currently trades on 1.3 times the 2006 estimated market multiple. The broker said while it believes that Hays stock will at least rise with the market, it feels that its exposure to the public sector and some of the lower end of the labour market may limit the multiple expansion Goldman previously forecast would occur.

[jdwmkc] 06/7/2005 10:09

Can anyone explain the following:

"Hays said it 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"

Does this mean they decide I am going to sell my shares to them at a price they dictate?

[lyntwyn] 06/7/2005 08:13

HAS share price up today in response to favourable outlook from Michael Page which expects to exceed expectations. 140 could be on the cards if same HAS is experiencing same. Results due 060/9/05

28.06.05 :+3.5, (129.25) in a trading update, says that group pre-tax profit before goodwill amortisation and exceptional items for the year to Jun. 30 remains in line with the Board's expectations. Since the group's interim results in March, the business has continued to grow across each of the three regions of the United Kingdom & Ireland, Continental Europe and Australia & New Zealand. Growth has been broadly based across each of the principal activities, and both temporary and permanent placement fees are ahead of last year. Aggregate net fees in the second half of the financial year to date are 15% ahead of the same period last year. In September 2004 Hays announced its intention to buy back at least £200m of its own shares on the open market. To date the company has bought back 100.8m of its shares at a total cost of £127.2m. Hays said it 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.

[lord butterstock] 25/6/2005 16:44

Well, this one isn't up to alot is it?

Still in downtrend....

[lord butterstock] 25/6/2005 16:17

Level 2 anyone?

[r.dryden] 23/6/2005 15:51

Does anybody use the Heiken-Ashi system on the streaming charts and is it any good?

[elimall] 26/5/2005 21:23

Hays also suffered, 1-3/4 lower at 124-1/2, as UBS cut its rating to 'neutral' from 'buy' as it argued Hays is now the most expensive major staffing stock in Europe and believes a further rally looks unlikely.

[elimall] 26/5/2005 21:14

Elsewhere Hays was also an early blue chip casualty, down 2-1/2 pence to 123-3/4 after being downgraded to 'neutral' from 'buy' by UBS with a price target reduced to 138 pence from 160.

[lyntwyn] 12/5/2005 09:05

Downgraded to 'sell' from 'neutral' by Merrill Lynch, on concerns over 2006 valuations, said dealers. Given the recent slowdown in global economic growth, Merrill said it thinks 2006 valuations will come under increasing scrutiny. The broker pointed out that Hays is the highest rated European staffing agency, trading on a price/earnings multiple of 15.7 times 2006 estimates versus Vedior NV (12.0 times), Randstad Holding NV (12.6 times), Adecco SA (13.3 times) and Michael Page International PLC (14.8 times). In Merrill's view, there is limited downside risk to 2005 estimates, although the broker noted that sales growth is likely to slow rapidly over the next six months. Merrill argued that this is not reflected in the price/earnings 2006 multiple of 15.6 times.

[lyntwyn] 20/4/2005 09:56

18.04.05 :-1, (134.5) upgraded to 'hold' from 'sell' at Deutsche Bank with a raised price target of 138 pence, dealers said. In a note to clients, the broker said while market growth rates do seem to have peaked in the third quarter 2004, growth rates have remained high rather than slowing and as yet there are no concrete signs of a slowdown. As a result, it has lifted full-year 2006 EPS estimates by 7%.

[lyntwyn] 06/4/2005 09:07

This should help Hays along, - sector prospects extremely good. I see share price up 2% today already.

Michael Page says outlook 'encouraging' after forecast-busting Q1 - UPDATE
LONDON (AFX) - Michael Page International PLC, Britain's second largest
recruitment firm, delivered an upbeat assessment of its prospects after
reporting a forecast-busting 24.3 pct increase in first quarter revenues.

In a trading update, the company said first quarter revenues (gross profit)
rose to 59.8 mln stg from 48.1 mln stg a year earlier.

"All our geographic regions continued to show good growth in the first
quarter and the outlook for the group remains encouraging," said chief executive Terry Benson.

Recruitment firms are benefiting from a worldwide recovery in recruitment
levels within the key accountancy and finance, and information technology
sectors, both of which emerged from a prolonged downturn at the start of 2004.

The company said revenues in its key home UK market, which generates around
half the group's income, rose 17.1 pct.

Revenues rose 30.9 pct in Continental Europe, 26.7 pct in the Asia Pacific
unit and 74.8 pct in the Americas.

afx.

[seawatcher] 11/3/2005 16:29

Yes - been watching the 4500 lot buys going through all day. Should continue to provide support for next week but I'm out for now. May get in again monday morning. It's the weekend and don't feel happy with DOW.
sw

[lyntwyn] 10/3/2005 11:47

Up again today despite a very negative market. Continued share buyback program is no doubt providing much support. I don't see any reason why the employment industry should fail to continue momentum over next 12/18 months.

[w.bramley] 09/3/2005 15:14

Investors Cronicle, has HAS as just "Fairly priced", seems rather luke warm on prospects?? Share price has in the past, been a bit of a roller-coaster.

[lyntwyn] 08/3/2005 13:01

Hays 133 up 1/2
Goldman Sachs 'outperform' with estimates upped -afx

[lyntwyn] 02/3/2005 10:44

This is what Deutsche Bank says:

Deutsche Bank kept its 'sell' rating on Hays following the results, though noted its forecasts are under review. Deutsche noted its forecast for 10% growth in gross profit in the second half now looks too cautious but the broker highlighted some key issues. Firstly, Deutsche pointed out that the UK staffing market appears to have peaked. Secondly, the German-based broker said that since 1989 there has been a 92% correlation between Hays gross profit growth and GDP growth. Historically, gross profit growth has slowed very sharply as GDP growth has fallen towards 2% noted Deutsche. Thirdly, Deutsche explained that slowing GDP also puts pressure on gross profit per head and the temporary/permanent mix, both of which are key drivers of EBITA margins. While Deutsche admitted it has been too early on calling the slowdown in growth, it still thinks the fundamental premise is correct.
Meanwhile, Merrill Lynch said the interims are in line with expectations and reiterated its 'neutral' rating on the shares.

[lyntwyn] 01/3/2005 14:40

yep, this seems happens all the time in this market. What more could they deliver? Don't know why Deutche Bank suggest sell, - they have been saying that since last year! Their clients will have lost a few £s.
Hays 131-3/4 down 2-1/2
Post-interims profit-taking; Deutsche Bank 'sell' - afx.

[usza001] 01/3/2005 09:22

Am i missing something results appear very good yet the share price goes down...see what the afternoon brings......