15th Oct 2020 09:29
(Alliance News) - Recruitment firm Hays PLC on Thursday said fees are down in the third quarter across the board but the market for temporary staff remains stable.
The company said group fees are down 29% in the quarter ended September 30 having been "significantly" impacted by the pandemic.
Temporary markets were down 25% but stable overall. Permanent job markets remained "tough" with fees down 35%, although improved sequentially, particularly in markets previously hardest-hit by lockdowns.
Chief Executive Alistair Cox said: "The pandemic continues to significantly impact our markets, although encouragingly our Temp business remains stable and we have seen improvements in Perm, particularly in markets that had previously been hardest-hit by lockdowns."
Fees were down across the board geographically, with Australia & New Zealand fees down 26%, Germany 31%, UK & Ireland 34%, and Rest of World 27%.
Consultant headcount was down 5% in the quarter and 17% year-on-year.
Cash collection remained strong, with net cash of approximately GBP350 million, up from GBP90 million a year prior.
Going forward, Cox said: "Although many uncertainties remain, our business is resilient and our highly experienced management teams are focused on best positioning us for recovery. With our strong balance sheet and leading positions in key sectors, we are confident we can take further market share.
"We have made a good start to our 'Return to Growth' investment programme, and we are confident this will accelerate our fee momentum once we emerge from the pandemic, particularly in structural growth areas such as IT, large Corporate Accounts and Life Sciences."
Hays shares were down 2.3% at 113.20 pence each in London on Thursday morning.
By Greg Roxburgh; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Hays