Despite the economic malaise, it’s not all been bad news on the results front. Spring Group grew full year 2008 EBITDA by 15% to £9.2m on the back of a healthy 19% rise in revenues. Penna’s results were boosted as clients tried to soften the blow of redundancy by directing axed staff towards the company’s career transition service.

Capita’s underlying profit before tax surged 18% to £320m on the back of major contract wins for its business process outsourcing services. Randstad was badly hit by what it described as “the unprecedented fall in demand” in Q4 2008 and January 2009. The company said UK demand “remained weak”, with EBITA margin slipping to 2.5% compared to 4.3% in Q4 2007. Hays’ like-for-like growth fell by 2% as the company felt the effects of what chief executive Alistair Cox, admitted were “increasingly tough markets”. However, things would have been far worse had it not been for the company’s decision to focus on more defensive sectors, particularly the public sector.

But with public spending certain to come under pressure as government tax revenues fall, the question for Hays, and indeed many others targeting this sector, is how long it will remain a sanctuary from the economic storm raging all around. Speaking to Recruiter after the company announced its results, Cox admitted: “That’s the $64,000 question.”

But while conceding that public finances “will continue to come under further pressure”, he signalled that even were spending to take a hit, there were still plenty of untapped opportunities for Hays in this sector. As he pointed out not unreasonably, the NHS alone employs 1.3m people. And even if spending did fall, he said, there were opportunities for Hays to grow its marketshare.