Write-down warning hits Hays

RECRUITMENT giant Hays saw its shares become the heaviest of the FTSE 100 fallers today after warning it may face a write-down on one of the last non-personnel businesses it is involved in.

Hays has substantially completed its exit from logistics and a range of other interests built up in the empire of former boss Ronnie Frost, but said it has stopped receiving payments owed by its former chemicals business Albion.

After a management buyout of Albion three years ago, Hays was left with a significant minority holding and a £44.5m loan to the business on which it was being paid £4m a year interest and which is due to be paid back in full in 2010.

Hays finance director John Martin said the missing payments means the group has to 'consider whether any impairment provision is required'.

'Group pre-tax profit before exceptional items and goodwill amortisation for the year to 30 June 30 remains in line with the board's expectations,' the group said.

The shares fell 4 1/4p to 124 1/2p.