Interim Management Statement

Hays plc

INTERIM MANAGEMENT STATEMENT
FOR QUARTER ENDED 30 SEPTEMBER 2009
8 October 2009


Financial summary

Growth in net fees for the quarter ended 30 September 2009
(versus the same period last year)
                                                                   growth
                                                             actual       LFL*
By region 
   United Kingdom & Ireland                                  (41)%        (41)%
   Asia Pacific                                              (40)%        (45)%
   Continental Europe & Rest of World                        (27)%        (32)%

   Total                                                     (37)%        (40)%

By segment 
   Permanent                                                 (50)%        (52)%
   Temporary                                                 (24)%        (27)%

   Total                                                     (37)%        (40)%

* LFL is like-for-like growth, which represents organic growth at constant
currency.


Financial and operational highlights

   - Early signs of net fee stabilisation in the UK market and broader signs of
     stability in Australia

   - Percentage decline in net fees in Q1 at 40%* (Q4 2009: (40)%*)

   - Public sector recruitment markets becoming increasingly difficult

   - Continued cost control, strong cash generation and modest net debt
     position

   - Intention to maintain the current level of headcount across the Group

   - The Group intends to appeal against the OFT decision and fine

 
Commenting on trading for the quarter ended 30 September 2009, Alistair Cox,
Chief Executive of Hays plc, said:

"The specialist recruitment markets continue to be very challenging.  As we
said at our preliminary results, we are seeing early signs of stability in the
United Kingdom and broader signs of stability in Asia Pacific, although at
present no indications of recovery in either market. The Continental Europe
markets, which entered into the downturn later than other regions, are still
experiencing deteriorating conditions although the rate of decline has
moderated. Whilst the indications are that this year will be another tough year
for our industry, the downturn presents opportunities for market leading
companies like Hays to gain share and we will continue to pursue those
opportunities and invest in our business accordingly.

At Hays we understand that our clients and candidates want to talk to experts
in their own sector for their recruiting needs.  That's why we are investing
more in training our own people and building our business to be deeply
specialised in the various industries and disciplines we operate in.  By
underpinning our expertise with the advanced technology platforms we are
installing, we believe we can deliver the most efficient and tailored services
available in our industry.  This positions us well to both build stronger
leadership positions in today's market as well as benefit from any economic
upturn."

 
Group

In the quarter ended 30 September 2009, Hays plc, the leading global specialist
recruitment group, saw a reduction in net fees of 37% (40% on a like-for-like
basis*) versus the same period last year which is in line with the 40%*
reduction in net fees experienced in the quarter to June 2009. The difference
between the headline and like-for-like growth rate is primarily due to the more
favourable Euro and Australian dollar exchange rates. Net fees from the
permanent placement business decreased by 52%* and net fees from the temporary
placement business decreased by 27%*.

Net fees in our private sector business were down 47%* as we continued to see
tough market conditions across all of our markets. Net fees in our public
sector business decreased by 13%* this period as market conditions became more
difficult across both our United Kingdom and Australian public sector
businesses. We are also beginning to experience increasing pressure on our
underlying temporary placement margin in each of our core temporary placement
markets.

During the quarter, we reduced headcount by 5%. Most of this headcount
reduction took place at the beginning of the period and we are now actively
seeking to maintain headcount especially in our International business.


United Kingdom & Ireland

In the United Kingdom & Ireland, net fees fell by 41%* versus the same period
last year. Market conditions remained difficult across our private sector
permanent and temporary placement businesses. However, we did see the early
signs of stability in demand across a number of these markets during the
quarter. We are seeing increasingly tough markets in our public sector business
and fees decreased by 11%* this period. During the quarter headcount was
reduced by 4% and we have continued to drive efficiency by consolidating
operations in some locations, resulting in the closure of nine offices, which
reduces the number of offices in the United Kingdom & Ireland to 203.
 

AsiaPacific

In Asia Pacific, net fees decreased by 45%*. Conditions in the private sector
permanent and temporary placement markets continued to be difficult but demand
remained stable in most sectors and regions across the quarter. Market
conditions deteriorated in our public sector business with net fees declining
by 16%* versus the same period last year. Headcount was reduced by 5% during
the quarter.

 
Continental Europe & Rest of World ('RoW')

In Continental Europe & RoW, net fees decreased by 32%*. Our German business,
which is primarily focused on the IT contracting market, experienced a 19%*
reduction in net fees as market conditions continued to deteriorate. In our
other major countries in the region, which are principally focused on the
permanent placement markets, net fees fell by 42%* overall. Headcount was
reduced by 8% during the quarter with most of this reduction taking place at
the beginning of the period.
 

Cash flow and balance sheet

Cash flow in the quarter was again strong although the Group returned to a
modest net debt position following the repayment of the one-time £20 million
cash inflow which resulted from the withdrawal of the staff hire concession and
which was disclosed in the preliminary results.


OFT investigation

On 30 September 2009, The Office of Fair Trading ('OFT') issued its decision
finding that Hays' Construction & Property business in the UK had breached
competition law in the period October 2004 to November 2005. Hays has
co-operated fully with the OFT in its investigation under the leniency regime
and has been fined £30.4 million. The Group will be taking an exceptional
charge in this financial year in the region of £25 million. Whilst Hays take
the findings of the OFT's investigation seriously, we believe that the level of
the fine is arbitrary and wholly disproportionate with the activities to which
it relates, Hays' involvement in those activities and the way in which the OFT
has dealt with other cases in the past. The Group intends to appeal against
this decision.


Current Trading

The specialist recruitment markets continue to be very challenging.  As we said
at our preliminary results, we are seeing early signs of stability in the
United Kingdom and broader signs of stability in Asia Pacific, although at
present no indications of recovery in either market. The Continental Europe
markets, which entered into the downturn later than other regions, are still
experiencing deteriorating conditions although the rate of decline has
moderated. Whilst the indications are that this year will be another tough year
for our industry, the downturn presents opportunities for market leading
companies like Hays to gain share and we will continue to pursue those
opportunities and invest in our business accordingly.

* LFL is like-for-like growth, which represents organic growth at constant
currency.
 

Enquiries

Hays plc
Paul Venables    Finance Director      + 44 (0) 20 7383 2266
James Hilton     Investor Relations    + 44 (0) 20 7383 2266

Maitland
Neil Bennett                           + 44 (0) 20 7379 5151
Liz Morley


Conference call

Paul Venables and James Hilton of Hays plc will conduct a conference call for
analysts and investors at 9:00am United Kingdom time on Thursday 8 October
2009. The dial-in details are as follows:

Dial-in number                         [phone]
Password                               hays

The call will be recorded and available for playback for seven days as follows:

Replay dial-in number                  [phone]
Access code                            249047#


Reporting calendar

Trading statement for quarter ending 31 December 2009            7 January 2010
Half Year Report for 6 months ending 31 December 2009            25 February 2010
Interim management statement for quarter ending 31 March 2010    8 April 2010
Trading statement for quarter ending 30 June 2010                8 July 2010
 

Note to editors

Hays plc is the leading global specialist recruitment group. It is market
leader in the UK and Australia, and one of the market leaders in Continental
Europe. As at 30 June 2009, the Group employed 6,933 staff operating from 345
offices in 28 countries across 17 specialisms. For the year ended 30 June 2009:

   - the Group had revenues of £2.4 billion, net fees of £670.8 million and
     operating profit of £158.0 million;

   - the Group placed around 50,000 candidates into permanent jobs and around
     270,000 people into temporary assignments;

   - the temporary placement business represented 56% of net fees and the
     permanent placement business represented 44% of net fees.


Cautionary statement

This Trading update has been prepared solely in compliance with the Disclosure
Rules and Transparency Rules of the UK Financial Services Authority and is not
audited. Statements in this Trading update reflect the knowledge and
information available at the time of its preparation. Certain statements
included or incorporated by reference within this Report may constitute
"forward-looking statements" in respect of the Group's operations, performance,
prospects and/or financial condition. By their nature, forward looking
statements involve a number of risks, uncertainties and assumptions and actual
results or events may differ materially from those expressed or implied by
those statements.  Accordingly, no assurance can be given that any particular
expectation will be met and reliance should not be placed on any
forward-looking statement.  Additionally, forward-looking statements regarding
past trends or activities should not be taken as a representation that such
trends or activities will continue in the future. No responsibility or
obligation is accepted to update or revise any forward-looking statement
resulting from new information, future events or otherwise. Nothing in this
Trading update should be construed as a profit forecast. This Trading update
does not constitute or form part of any offer or invitation to sell, or any
solicitation of any offer to purchase any shares in the Company, nor shall it
or any part of it or the fact of its distribution form the basis of, or be
relied on in connection with, any contract or commitment or investment
decisions relating thereto, nor does it constitute a recommendation regarding
the shares of the Company. Past performance cannot be relied upon as a guide to
future performance. Liability arising from anything in this Trading update
shall be governed by English Law. Nothing in this Trading update shall exclude
any liability under applicable laws that cannot be excluded in accordance with
such laws.