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Recruiter Hays eyes U.S. growth after net fees climb 21 pct

(|Adds CEO comments, analyst note, details)

By Li-mei Hoang

LONDON, Feb 25 (Reuters) - British recruiting firm Hays said it planned to significantly grow its U.S. business after underlying net fees in the region grew by 21 percent in the first half of its financial year.

Chief Executive Alistair Cox said he planned to double its business in the United States in the next three years, using its majority stake in IT staffing business Veredus Corp as a base.

"I am quite a bull of the American market. I think it is set for a good trend going forward," said Cox, adding he hoped to repeat the success seen in the company's German business, which has seen profits rise to 62 million pounds ($96.13 million) last year from 3 million when it was acquired in 2003.

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"When we bought that business, it looked virtually identical to the business that we just bought in the States, in terms of numbers of people and the financials ... so we are hoping to replicate the German experience if you like," he added.

The company, which places workers in areas such as finance, construction and IT, raised its dividend by 5 percent to 0.87 pence, its the second time in two years, after its underlying group net fees rose to 383.9 million pounds ($595.20 million) in the first half of its financial year ended Dec (Shanghai: 600875.SS - news) . 31.

It also reported growth in all of its regions, with the UK and Ireland (Other OTC: IRLD - news) , Asia, North America all reporting net fee growth above 10 percent. Operating profit also grew by 22 percent, despite the foreign exchange impact of 4.1 million.

Hays (LSE: HAS.L - news) said the acceleration in the permanent recruitment market, which grew by 14 percent in the first half, had prompted it to increase its own headcount by 700 people.

However shares in the company were 6.3 percent lower at 150 pence by 1033 GMT, one of the largest fallers on the FTSE 250 index.

"Hays has no control over exchange rates and while strong profit momentum offsets euro and Aussie dollar headwinds in full year, we downgrade 2016 earnings per share expectations by 7 percent," said Jefferies analysts in an early morning note.

($1 = 0.6450 pounds) (Reporting by Li-mei Hoang, editing by Louise Heavens)