Hays profits fall, expects new chief executive soon

The profit for the year to the end of June, before goodwill and exceptional items, was 14.5% lower than last year's figure of 271.7m.

Bob Lawson, chairman and acting CEO, said: "Our strong cash flow and new contract wins reaffirm the resilience of our business in difficult market conditions."

The firm said Deutsche Bank and JP Morgan Chase were among its financial services clients.

Lawson said the firm remained committed to its recruitment business, which saw a 16% fall in profits amid a decline in permanent placements. Lawson said: "As more offices are opened outside the UK we are demonstrating that our business model is equally valid in other geographic markets."

Some 35% of Hays' core activities - personnel, commercial services and logistics - are outside the UK, mainly in continental Europe. In France it has established a strong presence in IT recruitment.

The company said it hoped to announce the appointment of a new chief executive by the time of the annual shareholders' meeting in November. The last CEO, John Coles, stepped down in June 2001.

On the London Stock Exchange the firm's shares rose more than 5% shortly after the results were announced, to 126.25p.