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Hays net fee income declines on challenging market

16th Apr 2024 09:47

(Alliance News) - Hays PLC on Tuesday reported a decline in net fees due to challenging market conditions, as it warned that it was too early to determine whether there will be a rebound in the short-term.

The London-based recruitment company said in the third financial quarter ended March 31, net fees income declined by 17% year-on-year, with a contraction in all regions. Australia & New Zealand had the largest decline of 29%, followed by Germany, the UK & Ireland with 16%. In the rest of the world, fee income fell by 14%.

Chief Executive Officer Dirk Hahn, noting that market conditions remained "challenging", said that the company had a "strong and clear strategy" aimed at building a more resilient business via increased operational rigour and strong cost management.

Looking ahead, Hays said: "We expect overall near-term market conditions to remain challenging, but broadly stable. The impact of temp & contracting hours worked in Germany will be an important sensitivity to fee and profit performance going forward, and it is too early to determine whether there will be a meaningful rebound in Q4."

CEO Hahn said: "We are firmly focused on targeting the many structural growth opportunities we see and, over time, rebuilding our conversion rate. Driven by our strong teams of talented colleagues worldwide, I am excited by what we can achieve once our end markets recover."

Hays shares fell 4.3% to 88.55 pence each on Tuesday morning in London.

By Tom Budszus, Alliance News slot editor

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