Recruitment firm Hays weighed down by restructuring costs
British Recruitment firm Hays was weighed down by the cost of restructuring its European operations and declines in business confidence as its profits dipped in the year to June.
The company reported a 3pc dip in pre-tax profits to £231m (€255m) for the 12 months to June 30 after it was dented by a £15m (€16.5m) one-off charge after cutting costs related to senior management in Europe.
Weakening market conditions in some of the company's key markets, such as Germany, Australia and the UK, pressed down on profitability towards the end of the year.
Overall, net fees increased by 2pc to £263.8, with operating profit up 4pc to £48.9m, driven by good cost control.
In Ireland the group reported net fee growth of 4pc.
Alistair Cox, chief executive of Hays, said: "We invested in strengthening our leading positions in key markets like Australia and Germany while also restructuring some of our European businesses to maximise their profitability.
"Our UK business delivered a solid result, despite ongoing uncertainties.
"Looking ahead, despite an increasingly tough global economic backdrop, our market positions, combined with our highly experienced global management teams and strong financial position, means I am confident we will continue to appropriately balance our long-term potential with the more challenging markets we currently face."
(Additional reporting PA)