Profits before tax at Hays fell by 18% to £100.8m for the six months ending 31 December 2008, compared to the same period in 2007.  Net fees grew to £383.7m from £374.8m, however this represented a 2% fall on a like-for-like basis.

Alistair Cox, Hays’ chief executive, described the company’s performance as resilient in what he admits are “increasingly tough markets”.

The company admits that conditions in the permanent market were particularly tough and getting tougher, with a 9% reduction in permanent placement fees.  UK permanent placements were particularly hard hit, with net fee income down by 25%.

However, the weakness on the permanent side was offset by resilience on the temp side, with temporary business net fees increasing by 4%. Temporary now  represents 52% of the company’s net fees. 

The company benefited by investing resources in the public sector, delivering 12% growth in the period. 

Hays also won several contracts in the major corporate account sector.

The company continued to develop its international network, including opening an office in Mumbai, India. Hays’ international business now accounts for half of group fees and 55% of group profits. Net fee income in Germany increased by 35%.

The company closed 14 UK offices (net) during the period and reduced UK headcount by 450 (9%).