Logistics and recruitment group Hays has got off to flying start in its drive to offload non-core parts of its business with the £200 million sale of its document handling arm.

The deal, selling its Information Management Services (IMS) business to US-based Iron Mountain and the UK's Mentmore, far exceeded City expectations, bringing in as much as two-thirds more than than some predictions, which ranged from £120 million to £160 million.

IMS, which employs about 1,600 people, stores important documents at secure sites for companies, delivering them to customers when needed, as well as other aspects of information management.

The deal, due to be officially announced to the Stock Exchange today , is the first fruit of a major overhaul of the group designed to refocus its attention on its core personnel business.

While other players in the recruitment market have had a tough time as a result of the global economic slowdown, Hays has continued to make progress.

The business, which has more than 200 offices in the UK and Ireland, is well known for providing temps for companies but also operates in sectors such as teaching and engineering.

The first of the sell-offs follows a major strategic review of the company launched shortly after the appointment of chief executive Colin Matthews at the end of last year.

Monday July 14, 2003