Adecco puts books in order

SHARES in global recruitment consultant Adecco leapt 8% in early trading after the firm released its long-delayed 2003 results and drew a line under bookkeeping problems.

Investors had initially feared the company might face problems similar to the financial scandal that hit Italian diary firm Parmalat.

The Swiss-based company reassured the market that no restatement of previous earnings would be needed.

Adecco, the world's biggest employment agency, said in January it had found accounting problems at its North American operations, triggering a 50% slide in its shares. The firm's chief financial officer and the head of its North American operations resigned over the affair.

Despite a recovery in Adecco's shares over the last few months as markets reassessed the likely cost of its accounting woes, investors have lost over 3.5bn Swiss francs (£1.6bn) as the stock remains around a quarter below levels before the troubles.

In early trade, the shares were off earlier highs but were still up 6.4% at 64.25 Swiss francs.

The company said it faced e100m (£70m) in additional auditing costs and adviser fees to Ernst & Young and others, roughly in line with market expectations.

'Much effort has been and will continue to be expended to ensure that our company is well managed and further improves its control systems,' said chairman John Bowmer. 'Having gone through such an exhaustive audit, I am convinced that Adecco emerges a stronger company, ready to face the challenges of the future.'

The firm faces about a dozen such suits from investors who say they have been misguided by Adecco and are looking to recover investment losses. The company is fighting consolidated class action lawsuits in the US.