Friday 20 July 2018

Hays profits to come in ahead of forecasts

The group said that full-year operating profit is set to be “marginally” ahead of consensus.

Hays expects profits to come in ahead of consensus (PA)
Hays expects profits to come in ahead of consensus (PA)

By Ravender Sembhy, Press Association City Editor

Recruitment firm Hays has said that profit is expected to come in slightly ahead of expectations after the firm booked a solid fourth quarter performance.

The group said that full-year operating profit is set to be “marginally” ahead of consensus, which is currently £240.9 million.

It came as Hays posted overall net fee growth of 14% in the final quarter of the year to June 30, and 15% on a like-for-like basis.

Its permanent recruitment segment, which accounted for 43% of the group’s quarterly net fees, saw 20% like-for-like fee growth.

Shares were up over 5% in morning trade at 201p.

However, the UK and Ireland saw like-for-like net fee growth of just 5%, the lowest overall growth of all its regions.

In Australia & New Zealand, Germany, and the rest of the world like-for-like growth was higher at 14%, 16%, and 23% respectively.

Brexit uncertainty has dragged on recruitment in the UK as many firms put hiring decisions on hold until a clearer picture of trade relations emerge.

Boss Alistair Cox cited “continuing economic uncertainties” in the UK business.

He added: “We have ended our financial year with another record quarterly net fee performance, excellent cash generation, and expect full-year operating profit to be marginally ahead of current market expectations.”

Temporary recruitment – accounting for 57% of quarterly fees – recorded 11% like-for-like net fee growth.

Press Association

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