BPS, Personnel & Commercial Core Acquisitions

Hays PLC 3 November 1999 Acquisitions in BPS, Personnel and Commercial Core activities Hays plc today announces the acquisition of Hutchinson Smith Limited, a UK- based IT contracting and solutions business, and Cannon Couriers, a London- based same-day delivery service. Hutchinson Smith offers a complementary range of services to Hays' existing Business Process Support (BPS) and Personnel operations through its three wholly-owned subsidiaries, Redfern Consultancy (Redfern), Computer Team Group Limited (CTG) and HS Managed Insourcing Limited (HSMI). CTG and HSMI, which provide permanent and contract IT-recruitment and managed HR solutions, will be merged with Hays IT Personnel, substantially increasing the number of IT contractors and making it one of the UK's largest IT recruitment companies. Redfern, an SAP Consulting Partner, acts as a strategic IT consultancy, offering systems development and integration. Its acquisition will support the delivery of integrated customer solutions currently offered by Hays BPS. Hutchinson Smith was acquired for an initial consideration of £27.75 million including debt. Further payments up to a maximum of £13.0 million may become payable by Hays, conditional upon the level of profits achieved by Redfern in the two years to 30 June 2001. In the year to 31 July 1999, Hutchinson Smith had a proforma operating profit of £2.6 million, on turnover of £75 million. At 31 July 1999 it had debt-free net assets of £6.6 million. Cannon Couriers was acquired for a total consideration of £5.1 million debt- free, payable over a 12 month period. At completion the business had audited debt free net assets of £700k. For the year to 31 March 1999, the business had an adjusted net operating profit of £800k on sales of £4.0 million. Cannon Couriers will be integrated with Hays DX' same-day delivery service, strengthening their position in the UK market and making them a market-leader in the important London area. Ronnie Frost, Chairman commented: 'Hutchinson Smith is an excellent strategic fit with our business. Redfern extends the range of services provided by our IT-related business support operations, whilst CTG and HSMI will further strengthen our growing IT personnel business making Hays IT one of the top 5 in the UK. Cannon Couriers is a strategic acquisition that builds on our objective of becoming a leading player in the fast-growing UK express courier market.' For further information, please contact: Ronnie Frost Chairman, Hays plc 01483 302 203 Andrew Grant Brunswick 0171 404 5959 Corinne Daniels

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Hays (HAS)
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