Business services company Hays is to rebrand as it transforms itself into a recruitment specialist.

Recruiter has learned that the company will keep its name as part of the new marketing initiative – although details concerning the rest of the rebrand remain secret.

But Hays does not look likely to repeat the mistake made by Royal Mail, which famously changed its name to Consignia, but ditched it after a hostile public reception.

The indications are that Hays will opt for a subtler and more cosmetic approach.

Marketing director Gary Hughes said: “We would be silly to lose our name. The project has been eight months in the undertaking and we are at a critical stage.”

A launch date for the new brand has been set, but Hughes would not reveal any further details to avoid tipping off rivals.

However, he said that Hays would be making a further announcement in four to six weeks’ time.

Paul Jones, an analyst at investment bank Numis questioned whether rebranding was necessary given the firm’s already strong reputation.

“It has already got an excellent brand, which is why rebranding would be quite strange,” he said.

“When you have got a name that is well-known and respected, I am not quite sure why they want to do this, unless it is simply to reiterate their message.”

Jones said investors were more concerned with Hays’s imminent disposal of its non-recruitment businesses. He added: “What the market wants to see is a clean unit and for them to get the disposals over and done with.”

•Hays has sold its Rentacrate business for £4m. The Management Support Services business has also been disposed for a nominal amount. Net proceeds from business disposed in the year ended 30 June 2003 are expected to total £3.7m.