The transformation of Hays from a diversified services group to recruitment specialist has paid off, with the firm reporting six-month results at the top end of its forecasts.

Operating profits at Hays’ core recruitment arm jumped by 28% to £80.6m in the six months to 31 December 2004. Turnover from continuing operations grew by 21% to £800.7m, while discontinued operations (primarily the demerged DX Services business), generated a turnover of £42.6m.

The business also enjoyed net fee growth of 15% in the UK over the same period, and fee increases of 24% in Australia and New Zealand and 32% across continental Europe. Overall fee growth averaged at 17% and operating profits grew by 20%.

But Denis Waxman, Hays’ chief executive, said the rate of growth would be hard to beat because prior year comparisons would be tough to exceed. He added, however, that temporary contractor work and orders for permanent jobs were on the increase and the firm was in line to meet its full-year expectations.

The firm’s chairman Rob Lawson attributed the company’s sturdy performance to its refocus on recruitment. “These record results demonstrate the benefits of being a focused specialist recruitment business,” he said.

In line with its plans to focus squarely on recruitment, Hays has been aggressively hiring new consultants and has also been expanding its branch network.

The recruitment company began selling its non-core operations in commercial services and logistics to concentrate on recruitment and HR in mid-2003.