Hays is continuing its transformation into a recruitment-only firm under chief executive Colin Matthews.

Matthews (pictured) has made it clear he does not want to head up a recruitment firm but continues to ring the changes at Hays.

Since September the company has sold its Sameday courier and Field Support business in the UK and part of its German logistics division.

Hays has also disposed of five surplus freehold properties that were previously used by the logistics business for £12.5m.

A statement to the stock exchange, released following the firm’s Annual General Meeting last week, said the firm’s recruitment business was slowly improving.

Net fees within the division were 4% ahead of last year and the most significant contributors to growth were Hays Montrose, its property, construction and mining business and its operations in Australia.

Hays Ascena, the specialist IT business the company acquired earlier this year, is performing in line with expectations.

The company is expanding its office network, particularly in continental Europe and is hiring new consultants. A spokesman added: “While we remain cautious on the market environment for the remainder of the year, we are confident about the long term prospects for the business.”

Hays also believes the three new services it launched under a licence it gained from the mail regulator, Postcomm, could create “substantial” business opportunities.

Shares in the company dropped by 2.5p in trading following the announcement to around £1.22 each.