Broker snap: Hays dividend in danger says KBC

25th Feb 2010 11:37

Recruiter Hays may have to rethink its dividend policy and is a 'sell', suggests broker KBC Peel Hunt after a grim set of figures today.Profit slumped during the first half as companies remained more concerned with laying people off than taking them on. Profit before tax crashed dived to £3.4m in the six months to 31 December from £100.8m in 2008 and plunged 70% to £30.4m excluding a £27m OFT fine that is currently under appeal.KBC added the results were lower than expectations at the PBT level but in line at the Net Fee Income level, showing some more margin slippage. With uncertainty still surrounding the OFT fine and therefore the final dividend, the broker perfers rival SThree.