17th Jan 2023 10:41
(Alliance News) - Hays PLC on Tuesday reported that net fees rose by a double-digit percentage in its second financial quarter as its Germany-based business grew significantly higher than other regions.
Meanwhile, it anticipated a fall in half-year operating profit for the six months to December 31.
In the three months ended December 31, the London-based recruitment company said net fees recorded 11% growth against the previous year, driven by increased fee margins and the targeting of higher-value markets. On a like-for-like basis, growth was 8%.
The growth was driven by Germany, where net fees grew by 25%, or 22% on a like-for-like basis.
Meanwhile, Hays's UK & Ireland business climbed by 4% for both, while Australia & New Zealand were down 1% on an actual basis and down 4% on a like-for-like basis. In the rest of the world, net fees rose by 11% on an actual and 6% on a like-for-like basis.
In the first half of financial year 2023 to December 31, operating profit was between GBP95 million and GBP97 million, at least 4.5% lower than GBP101.6 million a year prior.
The company explained that Germany having three fewer trading days in the second quarter due to the timing of public holidays versus a year ago negatively impacted its fees and operating profit by around GBP5 million.
Hays added that the closure of its Russian business in March 2022 negatively impacted its first half's operating profit by around GBP1 million versus a year ago.
"For the first time in seven quarters, our largest business of Temp & Contracting grew faster than Perm, and Temp volumes increased through the quarter, while overall Perm volumes decreased modestly. Around the world we delivered a number of quarterly fee records, including our largest market of Germany, in Europe, Middle East & Africa and our global Technology business," Hays said.
Hays shares were 2.8% higher at 122.30 pence each in London on Tuesday morning.
By Tom Budszus, Alliance News reporter
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