Jobs market recovery lifts Adecco

Adecco is upbeat for 2006

Adecco, the world's biggest employment agency, delivered a 37% rise in net profits last year thanks to a turnaround in the jobs market.

The Swiss company also confirmed press speculation that it was in tie-up talks with Russian peer Anchor.

Net profits rose to 453m euros ($541m; £308m), beating average forecasts of about 412m euros.

However, fourth quarter operating profits fell 11% as 164m euros went on the costs of restructuring.

Adecco is in the middle of a shake-up after chief executive Jerome Caille quit last year following a spate of disappointing results.

New chief

Klaus Jacobs has since taken over at the helm and last month the company bought German staffing firm DIS, taking its experienced management team into the Adecco boardroom.

And now it is in talks with Russia's Anchor, but declined to give too much away on the discussions.

"We don't comment on acquisitions, but since they decided to make it public, let me say we are in talks but let me not comment more," said Mr Jacobs.

"When we have a nice agreement with them, that should be it for growing in such an important European market."

If a deal is clinched Adecco would secure access to one of the world's fastest-growing jobs markets.