11th Oct 2018 08:50
LONDON (Alliance News) - Recruitment company Hays PLC said Thursday it made a "good" start to its financial year with a record quarterly performance and retained a "positive" outlook for its international markets for the rest of the year.
For the three months ended September, the FTSE 250-listed company saw its net fees grow by 7% on a headline basis, with like-for-like growth of 9%.
Hays said the relative strength of sterling against the Australian dollar and euro reduced its reported net fee growth.
The best performers in the first quarter were the Germany and Rest of World segments, both increasing net fees by 12%, the company said.
The Australia & New Zealand segment's net fees decreased 1% in the period.
"We have made a good start to our financial year, delivering another record quarterly net fee performance. Against increasingly tough comparatives, net fees in our International businesses grew by 11%, including 10 all-time records," Chief Executive Alistair Cox said.
The company's Temporary business, which accounts for 57% of total fees, like-for-like fees increased 8% in the period. Like-for-like net fees for the Permanent business - 43% of total revenue - increased 11%
He continued: "Germany and Rest of World continued to perform strongly, Australia delivered its 17th consecutive quarter of growth and, despite ongoing economic uncertainties, our UK business continued to grow modestly."
The company expects a GBP5 million operating profit headwind for the full year on exchange rate movements.
Hays had net cash of around GBP80 million at September 30, up from GBP60 million at the end of the first quarter in 2017, but down from GBP122.9 million at the end of the financial year three months ago.
The company said the decrease was in line with expectations and is due to "normal timing and phasing of cash flows".
Cox added: "Looking ahead, while we are mindful of macroeconomic conditions, the outlook remains positive across our International markets. We are continuing to invest in our key structural growth markets, notably Germany, France, the USA and Asia to capitalise on the many opportunities we currently see. We remain focused on driving profitable, cash-generative growth and leveraging our platform, which is the largest and most balanced in our industry. This means we can look to the future with confidence."
The company's consultant headcount increased 5% in the quarter, reflecting "normal seasonal graduate intake" and in line with expectations.
Shares in Hays were down 13% Thursday morning at 153.90 pence each.
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