Hays (HAS) Trading update summary

Financial performance

• Q4 net fees flat on a headline basis and up 7% LFL; currency translation and Easter timing affected reported growth.

• Temporary net fees rose 8% LFL and permanent net fees rose 5% LFL; temporary placements represented 59% of Q4 net fees, with underlying temp margin broadly stable.

• Consultant headcount increased 3% QoQ and 6% YoY.

Regional performance

• UK & Ireland net fees grew 11% LFL, led by permanent growth of 17%; private sector rose 12% and public sector 8%.

• Continental Europe & Rest of World net fees grew 7% LFL; Germany and France each rose 7%, while 12 countries delivered growth of at least 10%.

• Asia Pacific net fees were flat LFL; Australia & New Zealand fell 5%, while Asia grew 27% and recorded a quarterly high.

Outlook and financial position

• FY operating profit guidance reiterated at around £140m, following the upgrade at Q3.

• Net debt was c.£65m at June 2014, versus c.£75m at 31 March 2014 and £105m at 30 June 2013.

• Continued investment in consultant headcount targeted growth opportunities, alongside a focus on productivity, profit and cash objectives.