HAYS PLC: Half-yearly Report

HAYS PLC  
HALF YEAR REPORT 
SIX MONTHS ENDED
31 DECEMBER 2012 
28 February 2013 
RESILIENT PROFIT PERFORMANCE DELIVERED THROUGH SELECTIVE INVESTMENT & STRONG
COST CONTROL 
Six months ended 31 December                                          Actual    
LFL(1)
(In £'s million)                                    2012      2011    growth   
 growth 
                                                                             
  
Net fees                                           360.3     373.8      (4)%    
  (1)%
Operating profit from continuing operations         60.3      63.1      (4)%    
  (2)%
Cash generated by operations(3)                     49.2      60.1     (18)%     
  
Profit before tax                                   56.7      60.3      (6)%     
  
Basic earnings per share(4)                        2.43p     2.76p     (12)%     
  
Dividend per share                                 0.83p     0.83p        0%     
   
All numbers are from continuing operations only. 
Highlights 
· Solid Group results in the context of more fragile and fast-changing 
conditions in 
  several key markets 
· Resilient profit performance due to our selective investment approach  and 
strong 
  cost control 
· UK returned to profit through successful delivery of significant cost 
reduction 
  programme 
· Strong performance in Continental Europe & Rest of World, net fees increased 
14%(1); 
  markets mixed 
 - Germany up 19%(1), Canada up 36%(1) Russia up 37%(1); but 7 countries 
saw net  
   fees decrease 
· Asia Pacific net fees decreased 11%(1); markets overall more challenging 
 - Australia down 13%(1)  including a step-down in Resources & Mining 
activity in Q2 
 - Asia down 6%(1) with markets tough but broadly stable 
· UK & Ireland net fees decreased 6%(1); markets remained challenging but 
sequentially 
  stable overall in H1 
 - Private sector net fees down 12%(1); Public sector up 15%(1)  due to 
increased  
   perm job churn 
· Consultant headcount down 3% year-on-year, up 1% in the last six months 
· Solid cash performance, with 82% conversion of operating profit into 
operating cash flow(3) 
· 12% decrease in EPS(4) reflecting the Group's higher net finance charge and 
effective 
  tax rate 
Commenting on these results Alistair Cox, Chief Executive, said: 
"I am pleased we have delivered such a resilient profit performance considering
the fragile and rapidly changing environment we faced in the half. We have
returned the UK business to profit, continued to invest for growth where
markets are good such as in Germany or Canada, and taken rapid action to reduce
costs in markets which deteriorated in the half such as Australia or France. 
What sets us apart in today's more volatile market is the scale and strength of
the business model we have built. Our business is well balanced across temp and
perm recruiting, has market leadership positions in both structural-growth and
more mature markets, and has a sectoral diversity which is unrivalled in our
industry. All of this is underpinned by our unique technology systems which not
only help us improve our own productivity and efficiency but also allow us to
capitalise on new evolutions in the market such as social media platforms. 
Looking ahead we expect overall conditions to remain fragile, but we have seen
an encouraging return to work in our key temp and contractor businesses.
Several markets are likely to remain challenging, but these will sit side by
side with clear opportunities for growth. To be successful in this environment,
we will continue to react quickly to the world as it changes, investing in
stronger markets while reducing costs in tougher areas. Our focus is on
long-term growth while driving profits along the way." 
(1) LFL (like-for-like) growth represents organic growth of continuing 
activities  


    at constant currency.

(2) The underlying temporary placement gross margin is calculated as temporary 
    placement net fees divided by temporary placement gross revenue and relates 


solely to temporary placements in which Hays generates net fees and 
specifically  
excludes transactions in which Hays acts as agent on behalf of workers 
supplied  
by third party agencies. 
(3) Before exceptional items and excludes exceptional cash cost. 
(4) Earnings per share from continuing operations only before exceptional 
items. 
Enquiries 
Hays plc                                                                    
Paul Venables                Group Finance Director           + 44 (0) 20 7383 
2266                 
David Walker                 Head of Investor Relations       + 44 (0) 20 7383 
2266 
Maitland                                                                    
Liz Morley / Brian Hudspith                                   + 44 (0) 20 7379 
5151 
Results presentation & webcast 
The results presentation will take place at UBS offices at 100 Liverpool
Street, London at 10:00am on 28 February 2013 and will also be available as a
live webcast on our website, hays.com/investors. A recording of the webcast
will be available on our website from 1:00pm on 28 February 2013. 
Reporting calendar 
Interim Management Statement for quarter ending 31 March 2013        11 April 
2013     
Trading Update for quarter ending 30 June 2013                       11 July 
2013      
Preliminary Results for year ending 30 June 2013                     29 August 
2013    
Interim Management Statement for quarter ending 30 September 2013    10 October 
2013    
                                                                  
Hays Group Overview 
Hays has 7,810 employees in 240 offices in 33 countries. In many of our global
markets, the vast majority of professional and skilled recruitment is still
done in-house, with minimal outsourcing to recruitment agencies which presents
substantial long-term structural growth opportunities. This has been a key
driver of the rapid diversification and internationalisation of the Group, with
the International business representing 70% of the Group's net fees as at 31
December 2012, compared with around 15% just 10 years ago. 
Our 5,038 consultants work in a broad range of sectors with no sector
specialism representing more than 25% of Group net fees. While Accountancy &
Finance, Construction & Property and IT represent 64% of Group net fees, our
expertise across 20 professional and skilled recruitment specialisms gives us
opportunities to rapidly develop newer markets by replicating these
long-established, existing areas of expertise. 
In addition to this international and sectoral diversification, the Group's net
fees are generated 59% from temporary and 41% permanent placement markets, and
we believe that this balance gives our business model relative resilience in
the current environment. 
This well diversified business model continues to be a key driver of the
Group's financial performance. 
Introduction 
We have delivered a solid performance in the first half, despite more
challenging conditions in many of our markets. Net fees decreased by 1% on a
like-for-like basis(1) and 4% on a headline basis. Operating profit decreased
by 2% on a like-for-like basis(1) and 4% on a headline basis. 
The first half saw continued market uncertainty in several parts of the Group,
with sentiment amongst our clients and candidates remaining subdued. Against
this backdrop, market conditions were prone to rapid change and varied
significantly between our geographies and specialisms. As such, our approach to
managing the business remained nimble and responsive throughout the half. 
Selective, targeted investment to capitalise on stronger markets and deliver
profitable fee growth 
We have continued to prioritise areas of investment to maximise fees in more
buoyant markets such as IT and Engineering around the world, and our global
Life Sciences and Oil & Gas specialisms. Equally, we have continued to invest
appropriately in order to capitalise on structural growth markets such as
Germany, Canada and Russia. At the same time, we have taken appropriate action
to defend the profit of the Group by focussing on strong cost control in more
challenging markets such as the UK, which returned to profitability in the
half, and markets which saw a step-down in activity levels such as Australia or
France.    
Movement in consultant headcount 
Our consultant headcount ended December at 5,038, up 1% in the half but down 3%
year-on-year, reflecting our more selective, targeted investment approach. In
our Continental Europe & Rest of World (RoW) division, we increased consultant
headcount by 10% in the half and 8% year-on-year to 2,154. Asia Pacific
consultant headcount was reduced by 7% in the half. This was led by a reduction
of 13% in Australia as we reacted to more challenging market conditions,
partially offset by continued investment in specific parts of Asia, notably
Japan, China and our recently opened Malaysian business. Year-on-year Asia
Pacific consultant headcount was down 9%. In the UK & Ireland consultant
headcount reduced by 4% in the half and 11% year-on-year, all through natural
attrition, and is now down 41% from peak levels. 
                              31 Dec              Net          31 Dec      
Consultant headcount                2012           change            2011        
                                                                       
Asia Pacific                       1,035            (103)           1,138        
Continental Europe & RoW           2,154              164           1,990        
United Kingdom & Ireland           1,849            (222)           2,071        
Group                              5,038            (161)           5,199        
Office network changes & global specialism roll-out 
We continue to build a stronger, broader-based and more efficient business and
through the first half we continued to selectively invest to grow our
International platform and focussed on developing new specialisms in existing
locations. In addition to opening a new office in Essen, Germany, specific
areas of focus in the half were the development of our Oil & Gas focussed
business in Houston, USA, which opened in June 2012, and the roll-out of our
successful IT contractor model across Canada. 
In the UK, we continued the consolidation of our office network in London as
well as focussing on any offices which are consistently failing to make a
positive contribution.  We ended the half with 105 offices, a reduction of five
since 30 June 2012 and down from a peak level of 235 in 2009. Given current
market conditions we are now broadly happy with the office footprint of our UK
business. 
                            31 Dec         Net opened/        30 June     
Office network                    2012            (closed)           2012        
                                                                       
Asia Pacific                        48                   0             48        
Continental Europe & RoW            87                   0             87        
United Kingdom & Ireland           105                 (5)            110        
Group                              240                 (5)            245        

Investing in technology, building relationships and responding to change 
Over the last five years we have significantly upgraded our core technology
platforms and now benefit from the most advanced integrated systems in our
industry allowing our consultants to very quickly identify the best people for
our clients' vacancies and thereby raise their productivity. 
The power of our global database is further enhanced by our unique
relationships with Google and LinkedIn. For example, our systems now allow us
to integrate with LinkedIn and exploit that platform alongside our own to build
relationships with more professionals worldwide. As a result of this
investment, we are now the 50th most followed company worldwide on LinkedIn,
facilitating access to the profiles of over 60 million professionals. This
combination of our expertise and the most effective technology available is now
creating real differentiation of our services for our clients and candidates
around the world. 
Temp market shows relative resilience in more challenging areas and areas of
skills shortage, perm markets volatile and tough overall 
Net fees in the temp business, which represent 59% of Group fees, increased by
4%(1). This comprised a volume decrease of 1% more than offset by a favourable
increase in mix/hours worked of 4%. Underlying temp margins(2) were flat at
14.9% (2011: 14.9%). 
Net fees in the perm business decreased by 7%(1). This was volume driven as the
average fee per placement was broadly flat. 
The higher level of growth in temp relative to perm reflects the greater
resilience of the temp and contractor business in more challenging, uncertain
markets.  It also reflects the changes we are seeing in the behaviours of both
candidates and clients to embrace more flexible working arrangements, notably
in areas of high technical skills and skills shortages such as IT, Engineering
and Energy, Oil & Gas. We saw lower levels of activity in perm, particularly in
the second quarter, as client and candidate confidence in many markets
worsened. 
Asia Pacific 
Markets more challenging overall; Q2 saw a step-down in activity in Australian
Resources & Mining; the rest of Australia and Asian markets were tough but
stable throughout 
                                                                Growth     
Six months ended 31 December                                                 
(In £'s million)                         2012      2011        Actual    
LFL(1)  
                                                                         
Net fees                                111.2     124.6         (11)%     (11)%
Operating profit                        36.3       48.0         (24)%     (25)%
Conversion rate                         32.6%     38.5%                          
Period end consultant headcount         1,035     1,138          (9)%         

In Asia Pacific, net fees decreased by 11% (11% on a like-for-like basis(1)) to
£111.2 million and operating profit decreased by 24% (25% on a like-for-like
basis(1)) to £36.3 million. The conversion rate of the division was 32.6% (H1
2011: 38.5%) and we reacted to fast-changing market conditions across the
various geographies and sectors in the division to control our cost base and
adjust consultant numbers, particularly in the second quarter. 
In our market-leading Australia business, net fees decreased by 13%(1). Temp
net fees decreased by 5%(1) and perm net fees decreased by 22%(1). In New South
Wales and Victoria (which together represent 47% of our Australia business) net
fees decreased by 18%(1) collectively as market conditions were challenging but
broadly stable through the half. We saw a step-down in activity in the
resource-based regions in the second quarter and responded to this rapid change
in market conditions by reducing headcount in relevant parts of our business to
best protect the financial performance going forward.  New Zealand delivered
further strong net fee growth of 14%(1).   
In our Asian business, which comprises 5 countries and accounted for 15% of the
division's net fees in the half, net fees decreased by 6%(1). In Japan, net
fees were flat(1) as banking and financial services markets remained tough.
Elsewhere in Asia, market conditions remained challenging but broadly stable
through the half. 
Consultant headcount in the division decreased by 7% through the half, led by a
13% decrease in Australia as we responded quickly to more challenging market
conditions to best defend the financial performance of the business. In Asia,
consultant headcount increased by 10%, primarily as a result of investment in
our recently opened business in Malaysia and increased headcount in China.
Going forward, we expect headcount in the division to be broadly flat. 
Continental Europe & Rest of World 
Strong growth and record results, driven by Germany; market conditions
elsewhere mixed and fragile but stable overall 
                                                                Growth     
Six months ended 31 December                                                 
(In £'s million)                         2012      2011        Actual    
LFL(1) 
                                                                             
Net fees                                139.7     132.8            5%       14%
Operating profit                         23.5      18.2           29%       45%
Conversion rate                         16.8%     13.7%                          
Period end consultant headcount         2,154     1,990            8%           
                                                                             
In Continental Europe & RoW, we delivered net fee growth of 5% (14% on a
like-for-like basis(1)) to £139.7 million, driving excellent operating profit
growth of 29% (45% on a like-for-like basis(1)) to £23.5 million. Both net 
fees
and operating profit represented first-half records for the division. The
difference between actual growth and like-for-like growth was due to currency
fluctuations, primarily the depreciation in the Euro. The conversion rate of
the division increased to 16.8% in 2012 from 13.7% in 2011 driven by strong net
fee growth in the more buoyant markets, strong cost control in more challenging
areas and more selective headcount investment across the division. 
Our Germany business, which represented 54% of the division's net fees,
delivered further strong net fee growth of 19%(1) and posted several record
monthly performances as momentum remained strong through the half. Growth was
broad-based across our contracting, temp and perm businesses, particularly in
our core specialisms of IT and Engineering. We also delivered strong growth in
Accountancy & Finance, Construction & Property, Sales & Marketing, Legal and
Life Sciences and these specialisms now account for 24% of total net fees. Our
market-leading position and our well diversified business mean we are ideally
positioned to benefit from the continuing rapid development of the specialist
recruitment market in Germany and the clear structural growth opportunities
this presents. 
In France, our second largest country in the division, net fees were flat(1) as
perm momentum slowed, particularly in the second quarter. Seven countries saw
net fees decline in the half, including Italy, Spain and Portugal which
together account for 4% of the division. Elsewhere, 10 businesses across the
division increased net fees by 10%(1) or more and we delivered notable
performances in Belgium, Poland and Russia which each achieved record monthly
net fee performances in the half. 
We continue to develop our business in Latin America, recognising the
structural growth opportunities in these markets. Having opened Hays Colombia
and Chile in 2012, we now operate in four countries across seven offices in the
region. In Brazil, we delivered good net fee growth of 10%(1), although this
market remains volatile. In North America, Canada delivered excellent net fee
growth of 36%(1) and our business in the US continues to perform well, more
than doubling net fees versus this time last year. 
Consultant headcount in the division increased by 10% during the half, led by
increases of 17% in Germany and 27% in Canada. We are continuing to invest in
consultant headcount in markets which demonstrate clear growth, while being
more cautious across the rest of the division to maximise our financial
performance. 
United Kingdom & Ireland 
Back to profit due to successful delivery of cost reduction plans. Markets
sequentially stable; private sector tough, public sector growing 
                                                                Growth     
Six months ended 31 December                                                 
(In £'s million)                         2012      2011        Actual    
LFL(1)   
                                                                             
Net fees                                109.4     116.4          (6)%      (6)%
Operating profit                          0.5     (3.1)          116%      116%
Conversion rate                          0.5%    (2.7)%                          
Period end consultant headcount         1,849     2,071         (11)%           
In the United Kingdom & Ireland, net fees decreased by 6%(1) to £109.4 million
and we made an operating profit of £0.5 million (compared to an operating loss
of £3.1 million in 2011). Net fees decreased by 10%(1) in the perm business 
and
by 2%(1) in the temp business and are now down 50% versus peak levels. 
Although trading conditions in the UK remain challenging, the business has been
sequentially stable through the half. In the private sector, net fees declined
by 12%(1). Markets were particularly difficult in our Banking and City-related
and Construction & Property specialisms, but we saw good growth in several
areas including Life Sciences, Human Resources and Energy, Oil & Gas. Overall
sentiment amongst clients and candidates in the UK remains subdued. 
In our public sector business, which represented 27% of UK net fees, we
delivered net fee growth of 15%(1). Activity in this market remains subdued and
is primarily driven by job-churn on the perm side of the business. In addition,
we delivered especially good performances in our Education and Healthcare
businesses. 
The return to profitability in the UK business was primarily the result of the
successful delivery of a range of cost reduction measures throughout our UK
Back Office and support functions, following the completion of the
implementation of our Front Office and Back Office systems, and our dedicated
shared service centre in India.  We have now reduced our UK cost base by over
30% from peak levels and we continue to review all aspects to seek further
efficiency savings focussed on Back Office and overhead costs. 
Consultant headcount in the division declined 4% during the half through
natural attrition, as we reacted to changes in market conditions to maximise
the financial performance of the business. We delivered improved consultant
productivity in the half and at the same time our focus remained on growing
market share and taking full advantage of those segments of the UK recruitment
market which continue to present growth opportunities. 
Current trading 
Markets remain mixed and overall fragile, with encouraging return to work in
key temp markets 
Overall candidate and client confidence remains fragile, particularly in perm
markets. In temp and contractor markets, the return to work has been
encouraging to date. 
We will continue to react quickly to changing conditions in each market,
investing selectively to capitalise on growth where conditions are good, and
defending the financial performance in more challenging areas. 
AsiaPacific 
Australia remains challenging. Conditions are stable in the core markets of New
South Wales and Victoria, and although we have seen encouraging return to work
trends across the business, the mining regions of Western Australia and
Queensland remain difficult following the marked step-down we experienced in
Q2. In Asia, markets are stable overall. 
Continental Europe & RoW 
The return to work in our Germany contractor and temp business was good and we
see continued good growth. Conditions across the rest of the division are mixed
and overall fragile. We see continued good growth in markets such as Canada and
Russia, but slowing growth across much of the rest of the division and net fee
declines in certain countries including Brazil and France. 
United Kingdom & Ireland 
The market remains challenging but sequentially stable overall and the return
to work in our temp business has been good. 
FINANCIAL REVIEW 
Summary Income Statement 
                                                                             
Growth     
Six months ended 31 December                                                 
(In £'s million)                                     2012         2011         
Actual    LFL(1)  
                                                                             
                    
Turnover                                          1,731.7      1,863.2          
 (7)%      (5)% 
Net fees                                                                         
                     
 Temporary                                      212.3        209.9           
1%        4% 
 Permanent                                      148.0        163.9          
(10)%      (7)% 
 Total                                          360.3        373.8          
 (4)%      (1)% 
                                                                             
                    
Operating profit from continuing operations          60.3         63.1          
 (4)%      (2)% 
                                                                             
                    
Conversion rate                                     16.7%        16.9%           
                         
Underlying temporary margin (2)                     14.9%        14.9%           
                         
Temporary fees as % of total                          59%          56%           
                         
Period end consultant headcount                     5,038        5,199          
 (3)%           
(1) LFL (like-for-like) growth represents organic growth of continuing 
activities at constant  
currency. 
(2) The underlying temporary placement gross margin is calculated as temporary 
placement net  
fees divided by temporary placement gross revenue and relates solely to 
temporary placements  
in which Hays generates net fees and specifically excludes transactions in 
which Hays acts as  


    agent on behalf of workers supplied by third party agencies.

(3) Before exceptional items and excludes exceptional cash cost.

(4) Earnings per share from continuing operations only before exceptional 
items.


Turnover decreased by 7% (5% on a like-for-like basis(1)) and net fees
decreased by 4% (1% on a like-for-like basis(1)). Operating profit decreased by
4% (2% on a like-for-like basis(1)). The difference in growth rates between
turnover and net fees was primarily driven by a reduction in pass-through
revenues payable to third party agencies. Exchange rate movements decreased net
fees and operating profit by £9.7 million and £1.8 million respectively,
primarily the result of depreciation in the rate of exchange of the Euro.
Fluctuations in exchange rates remain a significant sensitivity for the Group,
notably the Euro and the Australian Dollar.

Operating costs decreased by 1%(1) versus prior year. This was primarily due to
the successful delivery of reductions to our operating cost base in the UK,
which decreased by 9%, and reflected our focus on cost control in more
challenging markets, and more selective, targeted investment approach.

Conversion rate, which is the proportion of net fees converted into operating
profit, reduced to 16.7% from 16.9% in the prior year as our strong control of
operating costs, largely focussed on Back Office and overheads, was more than
offset by a reduction in net fees.

Consultant headcount ended December at 5,038, up 1% in the half but down 3%
year-on-year. In our International business, we increased consultant headcount
by 4% in the half but this was largely offset by a 4% reduction in the UK &
Ireland. This reflects our more selective, targeted investment approach to
ensure we capitalise on more buoyant markets and clear structural growth
opportunities, but react to defend financial performance in more volatile or
challenging markets.



Net finance charge

The net finance charge for the half was £3.6 million (2011: £2.8 million). 
The
average interest rate on gross debt during the half was 2.7% (2011: 2.7%),
generating net bank interest payable, including amortisation of arrangement
fees, of £3.9 million (2011: £3.6 million). The net interest charge on the
defined benefit pension scheme obligations was £0.3 million (2011: credit of 
£
1.1 million) with the movement being primarily due to lower expected asset
returns than in the prior year. The Pension Protection Fund levy was a £0.6
million credit (2011: £0.3 million charge) which included a £0.8 million 
credit
arising on the release of an accrual related to the settlement of historic
issues. It is expected that the net finance charge for the year ending 30 June
2013 will be around £7 million; £3 million lower than previously guided.


Taxation

Taxation for the half was £22.9 million, representing an effective tax rate of
40.4% (2011: 37.0%). The effective tax rate reflects the Group's geographical
mix of profits, and the impact of unrelieved UK and overseas tax losses and
costs incurred in the UK for which no tax deduction is currently available. We
expect the Group's effective tax rate to be around 40% for the year to June
2013 (2012: 38.3%).


Earnings per share

Basic earnings per share(4) decreased 12% to 2.43 pence (2011: 2.76 pence). The
decrease in earnings per share reflects the Group's lower operating profit, the
higher net finance charge and effective tax rate.


Cash flow and balance sheet

Cash flow in the half was solid with 82% conversion of operating profit into
operating cash flow(3). This was lower than the prior year (2011: 95%)
primarily as a result of an increase in trade debtor days to 40 days (2011: 38
days), resulting from the timing and phasing of cash flows, and strong growth
in our Germany temp and contractor business, which is relatively more working
capital intensive.

Net capital expenditure was lower at £5.9 million (2011: £9.8 million). 
Capital
expenditure is expected to be around £12 million for the year to June 2013.

Dividends paid in the half totalled £23.2 million and pension deficit
contributions were £6.4 million. Net interest paid was £5.4 million interest
which included the upfront arrangement fee in relation to the renewal during
the half of the Group's £300 million unsecured revolving credit facility, 
which
expires in October 2017 (more details of which are included in the Treasury
Management section below).

Net debt increased from £132.9 million at the start of the year to £145.4
million at the end of the first half primarily due to the timing of working
capital outflows at the end of the calendar year. We expect a reduction in net
debt in the second half, as previously guided.
 

Retirement benefits

The Group's pension liability under IAS19 at 31 December 2012 of £2.7 million
decreased by £12.7 million compared to 30 June 2012. The movement was due
primarily to employer contributions and higher than expected asset returns,
partially offset by the net impact of changes to the assumptions in respect of
the discount rate and inflation.

During the half, the Company contributed £6.4 million of cash to the defined
benefit scheme (2011: £7.7 million) all of which represented funding towards
the pension deficit in line with previous guidance.


Capital structure and dividend

The Board's priorities for our free cash flow are to fund the Group's
investment and development, maintain a strong balance sheet and deliver 
asustainable 
dividend at a level which is both affordable and appropriate. We target a 
dividend 
cover range of 2.0x to 3.0x(4) earnings and in line with this policy, the Board 

proposes to pay an unchanged interim dividend of 0.83p per share (2011: 0.83p).

The Board remains committed to paying a sustainable and progressive dividend.
It is our intention to grow the dividend when dividend cover sustainably
reaches c.2.5x(4).

The interim dividend payment date will be 15 April 2013 and will be paid to
shareholders on the register at close of business on 8 March 2013.


Board changes

As previously announced, Paul Stoneham retired as a non-executive director at
the Group's Annual General Meeting in November 2012. The process to appoint a
new non-executive director is progressing well.


Treasury management

The Group's operations are financed by retained earnings and bank borrowings.
The Group completed the re-financing of our £300 million revolving credit
banking facility on 2 October 2012 at interest rates similar to the previous
deal. The new 5-year-facility provides considerable headroom versus current and
future expected levels of Group debt. The covenants, which are unchanged on the
Group's previous facility, require the Group's interest cover ratio to be at
least 4:1 and its leverage ratio (net debt to EBITDA) to be no greater than
2.5:1. The Group has significant headroom within these covenants.

All borrowings are raised by the Group's UK-based treasury department, which
manages the Group's treasury risk in accordance with policies set by the Board.
The Group's treasury department does not engage in speculative transactions and
does not operate as a profit centre.

The Board considers it appropriate to use certain derivative financial
instruments to reduce its exposure to interest rate movements under its
floating rate revolving credit facility. The Group holds six interest rate
swaps which exchange a fixed payment for floating rate receipt on a total debt
value of £40 million with an equal mix of two-year and three-year maturities,
which commenced in October 2011. The Group does not hold or use derivative
financial instruments for speculative purposes.

Counterparty risk primarily arises from investment of any surplus funds. The
Group restricts transactions to banks and money market funds that have an
acceptable credit rating and limits exposure to each institution.


Principal risks facing the business

Hays plc operates an embedded risk management framework, which is monitored and
reviewed by the Audit Committee. There are a number of potential risks and
uncertainties that could have a material impact on the Group's financial
performance and position. These include risks relating to the cyclical nature
of our business, business model risk, talent, compliance risk, reliance on
technology, contract risk, foreign exchange and Eurozone risk. These risks and
our mitigating actions remain as set out in the 2012 Annual Report.
 

Hays plc
250 Euston Road,
London
NW1 2AF

hays.com/investors


Responsibility Statement

We confirm that, to the best of our knowledge:

· the unaudited condensed consolidated interim financial statements have
  been presented in accordance with IAS 34 "Interim Financial Reporting" as
  adopted by the European Union and gives a true and fair view of the assets,
  liabilities, financial position and profit for the Group;

· the interim management report includes a fair review of the information
  required by DTR 4.2.7R (indication of important events during the first six
  months of the financial year and their impact on the condensed financial
  statements, and description of principal risks and uncertainties for the
  remaining six months of the financial year); and

· the interim management report includes a fair review of the information
  required by DTR 4.2.8R (disclosure of related parties' transactions in the
  first six months of the financial year and any changes in the related parties
  transactions described in the last annual report).


This Half Year Report was approved by the Board of Directors and authorised for
issue on 27 February 2013.
 

Alistair Cox                                    Paul Venables            
Chief Executive                                 Group Finance Director


Cautionary statement

This Half Year report (the "Report") has been prepared in accordance with
the Disclosure Rules and Transparency Rules of the UK Financial Services
Authority and is not audited. No representation or warranty, express or
implied, is or will be made in relation to the accuracy, fairness or
completeness of the information or opinions contained in this Report.
Statements in this Report 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
shall not be placed on any forward-looking statement. Additionally,
forward-looking statements regarding past trends or activities shall not be
taken as a representation that such trends or activities will continue in the
future. The information contained in this Report is subject to change without
notice and 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 Report shall be construed as a profit forecast. This
Report does not constitute or form part of any offer or invitation to sell, or
any solicitation of any offer to purchase or subscribe for 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 or any invitation or inducement to engage
in investment activity under section 21 of the Financial Services and Markets
Act 2000. Past performance cannot be relied upon as a guide to future
performance. Liability arising from anything in this Report shall be governed
by English Law, and neither the Company nor any of its affiliates, advisors or
representatives shall have any liability whatsoever (in negligence or
otherwise) for any loss howsoever arising from any use of this Report or its
contents or otherwise arising in connection with this Report. Nothing in this
Report shall exclude any liability under applicable laws that cannot be
excluded in accordance with such laws.


Independent Review Report to Hays plc                                           
        
                                                                                


    
Introduction                                                                     


        
                                                                                


    
We have been engaged by the Company to review the condensed set of financial     
    
statements in the half-yearly financial report for the six months ended 31       
    
December 2012 which comprises the consolidated income statement, the             
    
consolidated statement of comprehensive income, the consolidated balance sheet,  
    
the consolidated cash flow statement, the consolidated statement of changes in   
    
equity and related notes 1 to 12. We have read the other information contained   
    
in the half-yearly financial report and considered whether it contains any       
    
apparent misstatements or material inconsistencies with the information in the   
    
condensed set of financial statements.                                           


        
                                                                                


    
This report is made solely to the Company in accordance with International       
    
Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim          
    
Financial Information Performed by the Independent Auditor of the Entity"        
    
issued by the Auditing Practices Board. Our work has been undertaken so that we  
    
might state to the Company those matters we are required to state to them in an  
    
independent review report and for no other purpose. To the fullest extent        
    
permitted by law, we do not accept or assume responsibility to anyone other      
    
than the Company, for our review work, for this report, or for the conclusions   
    
we have formed.                                                                  


        

Directors' responsibilities                                                     
        
                                                                                


    
The half-yearly financial report is the responsibility of, and has been          
    
approved by, the directors. The directors are responsible for preparing the      
    
half-yearly financial report in accordance with the Disclosure and Transparency  
    
Rules of the United Kingdom's Financial Services Authority.                      
     
As disclosed in note 1, the annual financial statements of the Group are         
    
prepared in accordance with IFRSs as adopted by the European Union. The          
    
condensed set of financial statements included in this half-yearly financial     
    
report has been prepared in accordance with International Accounting Standard    
    
34, "Interim Financial Reporting," as adopted by the European Union.             


        
                                                                                


    
Our responsibility                                                               


        
                                                                                


    
Our responsibility is to express to the Company a conclusion on the condensed    
    
set of financial statements in the half-yearly financial report based on our     
    
review.                                                                          


        
                                                                                


    
Scope of review                                                                  


        
                                                                                


    
We conducted our review in accordance with International Standard on Review      
    
Engagements (UK and Ireland) 2410 "Review of Interim Financial Information       
    
Performed by the Independent Auditor of the Entity" issued by the Auditing       
    
Practices Board for use in the United Kingdom. A review of interim financial     
    
information consists of making inquiries, primarily of persons responsible for   
    
financial and accounting matters, and applying analytical and other review       
    
procedures. A review is substantially less in scope than an audit conducted in   
    
accordance with International Standards on Auditing (UK and Ireland) and         
    
consequently does not enable us to obtain assurance that we would become aware   
    
of all significant matters that might be identified in an audit. Accordingly,    
    
we do not express an audit opinion.                                              
     
Conclusion                                                                       


        
                                                                                


    
Based on our review, nothing has come to our attention that causes us to         
    
believe that the condensed set of financial statements in the half-yearly        
    
financial report for the six months ended 31 December 2012 is not prepared, in   
    
all material respects, in accordance with International Accounting Standard 34   
    
as adopted by the European Union and the Disclosure and Transparency Rules of    
    
the United Kingdom's Financial Services Authority.                               


        
                                                                                    


    
Deloitte LLP                                                                     
    
Chartered Accountants and Statutory Auditor                                      
    
London, United Kingdom                                                           
    
27 February 2013                                                                 


        
                                                                                
        

Condensed Consolidated Income Statement                                         
            


                                                       Six months to    Six 
months to          
                                                         31 December      
31 December   Year to 
                                                                2012         
 2011   30 June
(In £'s million)                                     Note    (unaudited)      
(unaudited)      2012 
                                                                             
        
Turnover                                                                         
        
Continuing operations                                            1,731.7        
  1,863.2   3,654.6
Net fees (1)                                                                     
        
Continuing operations                                   2          360.3         
373.8     734.0
Operating profit from continuing operations             2           60.3         
 63.1     128.1
Finance income                                          3            0.4         
  0.5       0.9
Finance cost                                            3          (4.0)         
(3.3)     (6.6)
Profit before tax                                                   56.7         
 60.3     122.4
Tax                                                     4         (22.9)         
(22.3)    (46.9)
Profit from continuing operations after tax                         33.8         
 38.0      75.5
Profit from discontinued operations                                    -         
  1.1      11.0
Profit attributable to equity holders of the parent  
 Company                                                            33.8         
 39.1      86.5
Earnings per share from continuing operations                                    
        
  - Basic                                               6          2.43p         
2.76p     5.47p
  - Diluted                                             6          2.38p         
2.70p     5.37p
Earnings per share from continuing and discontinued                              
        
 operations                                                                      
         
  - Basic                                               6          2.43p         
2.84p     6.26p
  - Diluted                                             6          2.38p         


    2.78p     6.16p
                                                                                


        
(1) Net fees comprise turnover less remuneration of temporary workers and other 
recruitment agencies.  
                                                                             
        
Condensed Consolidated Statement of Comprehensive Income                         


            
                                                                                
            


                                                       Six months to    Six 
months to          
                                                         31 December      
31 December   Year to 
                                                                2012         
 2011   30 June
(In £'s million)                                             (unaudited)      
(unaudited)      2012 
                                                                             
        
Profit for the period                                               33.8         
 39.1      86.5
Currency translation adjustments                                   (2.7)         
(8.8)    (16.1)
Mark to market valuation of derivative financial instruments         0.2         
(0.4)     (0.4)
Actuarial gain/(loss) on defined benefit pension schemes             6.8         
(10.6)    (24.6)
Tax relating to components of other comprehensive income           (3.0)         
  1.4       2.4
Other net income/(expense) for the period                            1.3         
(18.4)    (38.7)
Total comprehensive income for the period                           35.1         
 20.7      47.8
Attributable to equity shareholders of the parent Company           35.1         


     20.7      47.8


Condensed Consolidated Balance Sheet                                            
             
                                                                                
             


                                                         31 December      
31 December   Year to 
                                                                2012         
 2011   30 June
(In £'s million)                                     Note    (unaudited)      
(unaudited)      2012 
                                                                             
         
Non-current assets                                                               
         
Goodwill                                                           175.3         
180.4     177.2
Other intangible assets                                             48.9         
 58.6      55.5
Property, plant and equipment                                       23.9         
 25.0      24.2
Deferred tax assets                                                 24.3         


     29.2      28.3
                                                                   272.4        


293.2     285.2
Current assets                                                                   
         
Trade and other receivables                                        521.0         
538.5     538.6
Cash and cash equivalents                                           59.8         


     60.9      38.7
                                                                   580.8        


599.4     577.3
Total assets                                                       853.2         
892.6     862.5
Current liabilities                                                              
         
Trade and other payables                                         (382.8)        
  (401.0)   (429.0)
Current tax liabilities                                           (28.9)         
(32.2)    (29.2)
Bank loans and overdrafts                                          (0.2)         
(3.6)     (1.6)
Provisions                                              8          (3.7)         
(3.5)     (2.7)
Derivative financial instruments                                   (0.9)         
(1.1)     (1.1) 
                                                             (416.5)        
  (441.4)   (463.6)
Non-current liabilities                                                          
         
Bank loans                                                       (205.0)        
  (235.0)   (170.0)
Trade and other payables                                               -         
(1.0)         -
Retirement benefit obligations                          7          (2.7)         
(15.3)    (15.4)
Provisions                                              8         (19.9)         
(31.7)    (22.9) 
                                                             (227.6)        
  (283.0)   (208.3)
Total liabilities                                                (644.1)        
  (724.4)   (671.9)
Net assets                                                         209.1         
168.2     190.6 
Equity                                                                           
         
Called up share capital                                             14.7         
 14.7      14.7
Share premium                                                      369.6         
369.6     369.6
Capital redemption reserve                                           2.7         
  2.7       2.7
Retained earnings                                                (244.3)        
  (295.7)   (270.5)
Other reserves                                                      66.4         
 76.9      74.1
Total shareholders' equity                                         209.1         
168.2     190.6 
Condensed Consolidated Statement of Changes in Equity                            
               
For the six months ended 31 December 2012                                        


                   
                                                                                
                   
                                                        Share     Capital       
                  


                                           Share  premium  redemption  
Retained    Other        
(In £'s million)                             capital  account     reserve  
earnings reserves  Total 
                                                                             
               
At 1 July 2012                                  14.7    369.6         2.7   
(270.5)     74.1  190.6
Currency translation adjustments                   -        -           -       
  -    (2.7)  (2.7)
Mark to market valuation of derivative             
 financial instruments                             -        -           -       
  -      0.2    0.2 
Actuarial gain on defined benefit pension          
 schemes                                           -        -           -       
6.8        -    6.8
Tax relating to components of other                
 comprehensive income                              -        -           -     
(3.0)        -  (3.0)
Net income recognised in other comprehensive       
 income                                            -        -           -       
3.8    (2.5)    1.3
Profit for the period                              -        -           -      
33.8        -   33.8
Total comprehensive income for the period          -        -           -      
37.6    (2.5)   35.1
Dividends paid                                     -        -           -    
(23.2)        - (23.2)
Share-based payments                               -        -           -      
11.8    (5.2)    6.6
At 31 December 2012                             14.7    369.6         2.7   
(244.3)     66.4  209.1 
                                                                             
               
For the six months ended 31 December 2011                                        


                   
                                                                                
                   
                                                        Share     Capital       
                  


                                           Share  premium  redemption  
Retained    Other        
(In £'s million)                             capital  account     reserve  
earnings reserves  Total 
                                                                             
               
At 1 July 2011                                  14.7    369.6         2.7   
(275.6)     85.0  196.4
Currency translation adjustments                   -        -           -       
  -    (8.8)  (8.8)
Mark to market valuation of derivative             
 financial instruments                             -        -           -       
  -    (0.4)  (0.4)
Actuarial loss on defined benefit pension          
 schemes                                           -        -           -    
(10.6)        - (10.6)
Tax relating to components of other                
 comprehensive income                              -        -           -       
1.4        -    1.4
Net expense recognised in other comprehensive      
 income                                            -        -           -     
(9.2)    (9.2) (18.4)
Profit for the period                              -        -           -      
39.1        -   39.1
Total comprehensive income for the period          -        -           -      
29.9    (9.2)   20.7
Dividends paid                                     -        -           -    
(54.3)        - (54.3)
Share-based payments                               -        -           -       
4.3      1.1    5.4
At 31 December 2011                             14.7    369.6         2.7   
(295.7)     76.9  168.2 
                                                                             
               
For the year ended 30 June 2012                                                  


                   
                                                                                
                   
                                                        Share     Capital       
                  


                                           Share  premium  redemption  
Retained    Other        
(In £'s million)                             capital  account     reserve  
earnings reserves  Total 
                                                                             
               
At 1 July 2011                                  14.7    369.6         2.7   
(275.6)     85.0  196.4
Currency translation adjustments                   -        -           -       
  -   (16.1) (16.1)
Mark to market valuation of derivative             
 financial instruments                             -        -           -       
  -    (0.4)  (0.4)
Actuarial loss on defined benefit pension          
 schemes                                           -        -           -    
(24.6)        - (24.6)
Tax relating to components of other                
 comprehensive income                              -        -           -       
2.4        -    2.4
Net expense recognised in other comprehensive      
 income                                            -        -           -    
(22.2)   (16.5) (38.7)
Profit for the year                                -        -           -      
86.5        -   86.5
Total comprehensive income for the year            -        -           -      
64.3   (16.5)   47.8
Dividends paid                                     -        -           -    
(65.8)        - (65.8)
Share-based payments                               -        -           -       
6.6      4.4   11.0
Other share movements                              -        -           -       
  -      1.2    1.2
At 30 June 2012                                 14.7    369.6         2.7   
(270.5)     74.1  190.6 
                                                                             


                   

Condensed Consolidated Cash Flow Statement                                      
            
                                                                                
            


                                                       Six months to    Six 
months to          
                                                         31 December      
31 December   Year to 
                                                                2012         
 2011   30 June
(In £'s million)                                     Note    (unaudited)      
(unaudited)      2012 
Operating profit from continuing operations                         60.3         
 63.1     128.1
Adjustments for:                                                                 


            
      Exceptional items (1)                                        (0.4)        
    (6.1)     (7.0)
      Depreciation of property, plant and equipment                  5.6        
      4.4       9.7
      Amortisation of intangible fixed assets                        7.0        
      7.5      13.5
      (Loss)/profit on disposal of property, plant 
       and equipment                                               (0.1)        
    (0.1)       0.9
      Net movements in provisions                                  (1.6)        
    (1.2)     (5.4)
      Share-based payments                                           6.0        
      6.1      12.2
                                                                    16.5        


 10.6      23.9
Operating cash flow before movement in working 
 capital                                                            76.8         
 73.7     152.0 
Changes in working capital                                        (28.0)         
(19.7)       3.2
Cash generated by operations                                        48.8         
 54.0     155.2
Income taxes paid                                                 (22.6)         
(18.9)    (44.2)
Net cash inflow from operating activities                           26.2         
 35.1     111.0
Investing activities                                                             
        
Purchase of tangible and intangible assets                         (5.9)         
(9.8)    (18.8)
Proceeds from sales of business and related assets                     -         
  0.1       0.1
Cash paid in respect of acquisitions made in previous 
 years                                                                 -         
(0.3)     (1.0)
Interest received                                                    0.4         
  0.5       0.9
Net cash used in investing activities                              (5.5)         
(9.5)    (18.8)
Financing activities                                                             
        
Interest paid                                                      (5.8)         
(3.7)     (7.1)
Equity dividends paid                                             (23.2)         
(54.3)    (65.8)
Purchase of own shares                                                 -         
    -     (0.7)
Proceeds from exercise of share options                              1.6         
  0.1       2.1
Increase/(decrease) in bank loans and overdrafts                    33.6         
 48.7    (18.3)
Pension scheme funding                                             (6.4)         
(6.2)    (12.4)
Net cash used in financing activities                              (0.2)         
(15.4)   (102.2)
Net increase/(decrease) in cash and cash equivalents                20.5         
 10.2    (10.0)
Cash and cash equivalents at beginning of period                    38.7         
 55.1      55.1
Effect of foreign exchange rate movements                            0.6         
(4.4)     (6.4)
Cash and cash equivalents at end of period              9           59.8         
 60.9      38.7
Bank loans and overdrafts at beginning of period                 (171.6)        
  (189.9)   (189.9)
(Increase)/decrease in period                                     (33.6)         
(48.7)      18.3
Bank loans and overdrafts at end of period                       (205.2)        
  (238.6)   (171.6)
Net debt at end of period                               9        (145.4)        
  (177.7)   (132.9) 
                                                                             
        
(1) The adjustments to the Cash Flow Statement in the current period of £0.4 
million; in the six  
months to 31 December 2011 of £6.1 million; and in the year to 30 June 
2012 of £7.0 million,  
all relate to cash paid in respect of exceptional items recognised during 
the financial years  


    ended 30 June 2010 and 30 June 2011.                                        
                                       
                                                                                
           

Condensed Consolidated Statement of Changes in Equity - Other Reserves          


            
For the six months ended 31 December 2012                                        


                
                                                                                
                


                                                      Own   Equity   
Cumulative  Hedging       
(In £'s million)                                       shares  reserve  
translation  reserve  Total 
                                                                             
            
At 1 July 2012                                          (2.2)     23.8         
53.6    (1.1)   74.1
Currency translation adjustments                            -        -        
(2.7)        -  (2.7)
Mark to market valuation of derivative financial            
 instruments                                                -        -          
  -      0.2    0.2
Net expense recognised in other comprehensive income        -        -        
(2.7)      0.2  (2.5)
Share-based payments                                      1.5    (6.7)          
  -        -  (5.2)
At 31 December 2012                                     (0.7)     17.1         
50.9    (0.9)   66.4 
                                                                             
            
For the six months ended 31 December 2011                                        


                
                                                                                
                


                                                      Own   Equity   
Cumulative  Hedging       
(In £'s million)                                       shares  reserve  
translation  reserve  Total 
At 1 July 2011                                          (3.4)     19.4         
69.7    (0.7)   85.0
Currency translation adjustments                            -        -        
(8.8)        -  (8.8)
Mark to market valuation of derivative financial            
 instruments                                                -        -          
  -    (0.4)  (0.4)
Net expense recognised in other comprehensive income        -        -        
(8.8)    (0.4)  (9.2)
Share-based payments                                      0.9      0.2          
  -        -    1.1
At 31 December 2011                                     (2.5)     19.6         
60.9    (1.1)   76.9 
                                                                             
            
For the year ended 30 June 2012                                                  


                
                                                                                
                


                                                      Own   Equity   
Cumulative  Hedging       
(In £'s million)                                       shares  reserve  
translation  reserve  Total 
At 1 July 2011                                          (3.4)     19.4         
69.7    (0.7)   85.0
Currency translation adjustments                            -        -       
(16.1)        - (16.1)
Mark to market valuation of derivative financial            
 instruments                                                -        -          
  -    (0.4)  (0.4)
Net expense recognised in other comprehensive income        -        -       
(16.1)    (0.4) (16.5)
Share-based payments                                      1.2      4.4          
  -        -    5.6
At 30 June 2012                                         (2.2)     23.8         
53.6    (1.1)   74.1 
1  Basis of preparation                                                          


         
                                                                                


     
The condensed consolidated interim financial statements ("interim financial      
     
statements") are the results for the six months ended 31 December 2012. The      
     
interim financial statements have been prepared under International Financial    
     
Reporting Standards ("IFRS") as adopted by the European Union, in accordance     
     
with International Accounting Standard 34 'Interim Financial Reporting' and the  
     
Disclosure and Transparency Rules of the Financial Services Authority. They are  
     
unaudited but have been reviewed by the auditors and their report is attached.   


         
                                                                                


      
The interim financial statements do not constitute statutory accounts as         
     
defined in Section 434 of the Companies Act 2006 as they do not include all of   
     
the information required for full statutory accounts. The interim financial      
     
statements should be read in conjunction with the statutory accounts for the     
     
year ended 30 June 2012, which were prepared in accordance with IFRS as adopted  
     
by the European Union and have been filed with the Registrar of Companies. The   
     
auditors' report on those accounts was unqualified, did not draw attention to    
     
any matters by way of emphasis and did not contain a statement under Section     
     
498 (2) or (3) of the Companies Act 2006.                                        
      
 
Accounting policies                                                              


         
                                                                                


     
The interim financial statements have been prepared on the basis of the          
     
accounting policies and methods of computation applicable for the year ended 30  
     
June 2012. These accounting policies are consistent with those applied in the    
     
preparation of the financial statements for the year ended 30 June 2012. There   
     
are no new standards or improvements to existing standards that are mandatory    
     
for the first time in the Group's accounting period beginning on 1 July 2012     
     
and no new standards have been early adopted. The Group's December 2012 Interim  
     
Report has adopted the following amendments to IFRS with no significant impact   
     
on the Group's financial performance or position:                                


         

· IFRS 1 Severe Hyperinflation and Removal of Fixed Dates for First-time 
Adopters       
                                                                                


     
· IFRS 7 Financial Instruments: Disclosures                                     


         
                                                                                


     
· IAS 12 Deferred Tax: Recovery of Underlying Assets                            


         
                                                                                


     
There have been no alterations made to the accounting policies as a result of    
     
considering all of the above amendments that became effective in the period, as  
     
these were not material to the Group's operations.                               


         
                                                                                


     
Going concern                                                                    


         
                                                                                


     
The Group's business activities, together with the factors likely to effect its  
     
future development, performance and financial position, including its cash       
     
flows and liquidity position are described in the Half Year Report.              
      
  
The Group has an unsecured revolving credit facility of £300 million that       
      
expires in October 2017. The Group uses the facility to manage its day-to-day    
     
working capital requirements as appropriate. As at 31 December 2012, £95        
      
million of the committed facility was un-drawn.                                  


         
                                                                                


     
The Group's facility, together with internally generated cash flows, will        
     
continue to provide sufficient sources of liquidity to fund its current          
     
operations, including contractual and commercial commitments, future growth and  
     
any proposed dividends. Therefore the Group is well placed to manage its         
     
business risks, despite the current uncertain economic outlook.                  


         
                                                                                


     
The directors have formed the judgement, at the time of approving the interim    
     
financial statements, that there is reasonable expectation that the Group has    
     
adequate resources to continue in operational existence for the foreseeable      
     
future. For this reason, the directors continue to adopt the going concern       
     
basis in preparing the interim financial statements.                             


         


2  Segmental information                                                        
             
                                                                                


         
IFRS 8, Operating Segments                                                       


             
                                                                                


         
IFRS 8 requires operating segments to be identified on the basis of internal     
         
reports about components of the Group that are regularly reviewed by the chief   
         
operating decision maker to allocate resources to the segment and to assess      
         
their performance.                                                               
          
  
As a result, the Group continues to segment the business into three regions,     
         
Asia Pacific, Continental Europe & Rest of World, and United Kingdom &           
         
Ireland.  There is no material difference between the segmentation of the        
         
Group's turnover by geographic origin and destination.                           


             
                                                                                


         
The Group's continuing operations comprise one class of business, that of        
         
qualified, professional and skilled recruitment.                                 


             

Net fees and profit from continuing operations                                  
             
                                                                                


         
The Group's Management Board, which is regarded as the chief operating decision  
         
maker, uses net fees by segment as its measure of revenue in internal reports.   
         
This is because net fees exclude the remuneration of temporary workers, and      
         
payments to other recruitment agencies where the Group acts as principal, which  
         
are not considered relevant in allocating resources to segments. The Group's     
         
Management Board considers net fees for the purpose of making decisions about    
         
allocating resources.  The Group does not report items below operating profit    
         
by segment in its internal management reporting.  The full detail of these       
         
items can be seen in the Income Statement.                                       
          

Net fees and profit from continuing operations                                   


             
                                                                                
             


                                                       Six months to    Six 
months to          
                                                         31 December      
31 December   Year to 
                                                                2012         
 2011   30 June
(In £'s million)                                             (unaudited)      
(unaudited)      2012
Net fees                                                                         
         
Asia Pacific                                                       111.2         
124.6     242.2
Continental Europe & Rest of World                                 139.7         
132.8     266.5
United Kingdom & Ireland                                           109.4         


    116.4     225.3
                                                                   360.3        


373.8     734.0
Operating profit from continuing operations                                      
         
Asia Pacific                                                        36.3         
 48.0      90.9
Continental Europe & Rest of World                                  23.5         
 18.2      43.7
United Kingdom & Ireland                                             0.5         


    (3.1)     (6.5)
                                                                    60.3        
     63.1     128.1
                                                                                


         
3  Finance income and finance cost                                               


             
                                                                                


         
Finance income                                                                   


             
                                                                                
             


                                                       Six months to    Six 
months to          
                                                         31 December      
31 December   Year to 
                                                                2012         
 2011   30 June
(In £'s million)                                             (unaudited)      
(unaudited)      2012
Interest on bank deposits                                            0.4         


      0.5       0.9

Finance cost                                                                    
             
                                                                                
             


                                                       Six months to    Six 
months to          
                                                         31 December      
31 December   Year to 
                                                                2012         
 2011   30 June
(In £'s million)                                             (unaudited)      
(unaudited)      2012
Interest payable on bank loans and overdrafts                      (4.3)         
(4.1)     (8.0)
Pension Protection Fund levy                                         0.6         
(0.3)     (0.9)
Net interest on pension obligations                                (0.3)         


      1.1       2.3
                                                                   (4.0)        


(3.3)     (6.6)
Net finance charge                                                 (3.6)         


    (2.8)     (5.7)
                                                                                  


        
4  Tax on ordinary activities                                                    


                 
                                                                                


              
The Group's consolidated effective tax rate in respect of continuing operations  
              
for the six months to 31 December 2012 is based on the estimated effective tax   
              
rate for the full year of 40.4% (31 December 2011: 37.0%, 30 June 2012: 38.3%).  


                  
                                                                                  


             
5  Dividends                                                                     


                 
                                                                                


              
The following dividends were paid by the Group and have been recognised as       
              
distributions to equity shareholders in the year:                                


                  
                                                                                
                  


                                                       Six months to    Six 
months to          
                                                         31 December      
31 December   Year to 
                                                                2012         
 2011   30 June
(In £'s million)                                             (unaudited)      
(unaudited)      2012
Final dividend for the year ended 30 June 2011 of 3.95 
 pence per share                                                       -         
 54.3      54.3
Interim dividend for the period to 31 December 2011 of 0.83               
 pence per share                                                       -         
    -      11.5
Final dividend for the year ended 30 June 2012 of 1.67 
 pence per share                                                    23.2         


        -         -
                                                                    23.2        
     54.3      65.8
                                                                                


              
The interim dividend for the period ended 31 December 2012 of 0.83 pence per 
share is not included 
as a liability in the balance sheet as at 31 December 2012. 
6  Earnings per share                                                            


                 
                                                                                
                  


                                                       Six months to    Six 
months to          
                                                         31 December      
31 December   Year to 
                                                                2012         
 2011   30 June
(In £'s million)                                             (unaudited)      
(unaudited)      2012
Earnings from continuing operations                                 56.7         
 60.3     122.4
Tax on earnings from continuing operations                        (22.9)         
(22.3)    (46.9)
Basic earnings                                                      33.8         
 38.0      75.5
Number of shares (million):                                                      
              
Weighted average number of shares                                1,390.3        
  1,378.9   1,381.4
Dilution effect of share options                                    25.8         
 27.6      23.4
Weighted average number of shares used for diluted EPS           1,416.1        
  1,406.5   1,404.8
From continuing operations:                                                      
            
Basic earnings per share                                           2.43p         
2.76p     5.47p
Diluted earnings per share                                         2.38p         
2.70p     5.37p
From continuing and discontinued operations:                                     
             
Basic earnings per share                                           2.43p         
2.84p     6.26p
Diluted earnings per share                                         2.38p         


    2.78p     6.16p
                                                                                
                  

7  Retirement benefit obligations                                               
                 
                                                                                
                  


                                                       Six months to    Six 
months to          
                                                         31 December      
31 December   Year to 
                                                                2012         
 2011   30 June
(In £'s million)                                             (unaudited)      
(unaudited)      2012
Deficit in the scheme brought forward                             (15.4)         
(11.9)    (11.9)
Past service cost/curtailment                                          -         
    -       6.0
Current service cost                                               (0.6)         
(1.6)     (2.7)
Contributions                                                        6.8         
  7.7      15.5
Net financial return                                               (0.3)         
  1.1       2.3
Actuarial gain/(loss)                                                6.8         
(10.6)    (24.6)
Deficit in the scheme carried forward                              (2.7)         
(15.3)    (15.4) 
                                                                             
              
8  Provisions                                                                    
              
(In £'s million)                                                  Property      
Other       Total
At 1 July 2012                                                        13.0       
12.6        25.6
Utilised                                                             (1.5)      
  (0.5)       (2.0)
At 31 December 2012                                                   11.5       
12.1        23.6 
Current                                                                          
            3.7
Non-current                                                                      


               19.9
                                                                                
               23.6

Provisions relate to continuing and discontinued operations. Property           


              
provisions are for rents and other related amounts payable on certain leased     
              
properties for periods in which they are not anticipated to be in use by the     
              
Group. The leases expire in periods up to 2015 and the amounts will be paid      
              
over this period.                                                                
               

Other provisions include potential warranty and environmental claim liabilities  
              
arising as a result of the business disposals that were concluded in 2004.       


                  
                                                                                


              
9  Movement in net debt                                                          


                 
                                                                                
                  


                                                  1 July      Cash     
Exchange     31 December
(In £'s million)                                        2012      flow     
movement            2012
Cash and cash equivalents                               38.7      20.5          
0.6            59.8
Bank loans and overdrafts                            (171.6)    (33.6)          
  -         (205.2)
Net debt                                             (132.9)    (13.1)          
0.6         (145.4) 
                                                                             
              
The table above is presented as additional information to show movement in net   
              
debt, defined as cash and cash equivalents less bank loans and overdrafts.       


                  
                                                                                


              
The Group completed the re-financing of a five year £300 million unsecured      
               
revolving credit facility on 2 October 2012 which expires in October 2017. The   
              
financial covenants, which are unchanged from the Group's previous facility,     
              
require the Group's interest cover ratio to be at least 4:1 and its leverage     
              
ratio (net debt to EBITDA) to be no greater than 2.5:1. The interest rate of     
                                  
the facility is based on a ratchet mechanism with a margin payable over LIBOR    
              
in the range of 1.85% to 2.40%.                                                  


                  

As at 31 December 2012, £95 million of the committed facility was un-drawn.    
                   
                                                                                   


              
10  Events after the balance sheet date                                          


                  
                                                                                


              
There are no significant events after the balance sheet date to report. 
                                                                             


                  

11  Like-for-like results                                                       
            
                                                                                


        
Like-for-like results represent organic growth/(decline) of continuing           
        
activities at constant currency.                                                 


            
                                                                                


        
For the six months ended 31 December 2012 these are calculated as follows:  
                                                                             
        
(In £'s million)                                                                
         
Net fees for the six months ended 31 December 2011                               
          373.8
Foreign exchange impact                                                          
          (9.7)
Net fees for the six months ended 31 December 2011 at constant currency          
          364.1
Net fee increase/(decline) resulting from organic growth                         
          (3.8)
Net fees for the six months ended 31 December 2012                               
          360.3
Profit from operations for the six months ended 31 December 2011                 
           63.1
Foreign exchange impact                                                          
          (1.8)
Profit from operations for the six months ended 31 December 2011 at              
    
 constant currency                                                               
           61.3     
Profit from operations increase/(decline) resulting from organic growth          
          (1.0)
Profit from operations for the six months ended 31 December 2012                 


               60.3
                                                                                
            
                                                                                


        
12  Like-for-like results H1 analysis by division                                


            
                                                                                


        
Net fee growth/(decline)                                                Q1       
 Q2          H1
versus same period last year                                          2013       
2013        2013
Asia Pacific                                                          (9%)      
  (14%)       (11%)
Continental Europe & Rest of World                                     16%       
12%         14%
United Kingdom & Ireland                                              (9%)       
(3%)        (6%)
Group                                                                 (1%)       
(1%)        (1%) 
                                                                             
        
H1 2013 is the period from 1 July 2012 to 31 December 2012. 
END 
-0- Feb/28/2013 07:00 GMT