10th Apr 2015 06:30
LONDON (Alliance News) - Hays PLC said Friday it expects to see strong operating profit growth in its full year, as it saw group net fee growth of 5% in its third quarter to end-March.
The recruitment company said it expects its second half operating profit to be slightly ahead of its first half level of GBP81.5 million.
At constant currency, and excluding acquisitions, net fees rose 8% in the quarter compared to the previous year, as the depreciation of the euro and Australian dollar against sterling held back performance at actual exchange rates.
Within this, its temporary business rose 3%, and the permanent business was up 7%.
In Asia Pacific it saw net fees growth of 5%, due to a strong performance in Australia and New Zealand, and growth in Japan and China offset declines in Singapore.
In Continental Europe and Rest of The World saw net fees growth of 3%, with Germany up 4% but held back by uncertainty over future regulations governing temporary and contractor markets, and growth across twelve countries including Belgium, the Netherlands, Poland and Spain helping to offset a decline in Brazil.
The United Kingdom and Ireland region saw net fees growth of 8%, bolstered by strong growth in its technical specialisms including IT and construction and property. Its private sector business performed well, and whilst market conditions have remained good, it has seen some cautious decision making amongst some clients as the General Election looms.
"Our focus remains on selectively increasing consultant capacity in the many areas where we see opportunities for growth. Simultaneously we will drive continual improvement in business productivity, allowing us to maximise this year's financial result, as well as deliver on our long-term profit and cash objectives," said Chief Executive Alistair Cox in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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