26th Aug 2021 08:44
(Alliance News) - Hays PLC on Thursday announced the resumption of dividend payments after an accelerated recovery in the second half of its recent financial year led to a slight rise in annual earnings.
The FTSE 250-listed firm posted a profit before tax of GBP88.1 million for the year that ended June 30, up 2.1% from GBP86.3 million the year before. Operating profit saw a 31% decline to GBP95.1 million, although GBP70.0 million was earned in the second half alone.
The London-based recruiter reinstated dividend payments with a core payment of 1.22 pence per share and a special dividend of 8.93p.
Shares were trading flat at 157.00 pence each in London on Thursday morning.
Net fees fell 8% to GBP918.1 million from GBP996.2 million the year before. Despite the decline, trading improved through the year, with strong sequential growth in all regions, Hays said. First half fees were down 24% but the second half saw a 13% upswing, with the final quarter up 39%.
"Despite all the challenges presented by the pandemic, we remained focused on our purpose, helped around 280,000 talented people find their next job and provided expertise, guidance and training to millions of others. As business and candidate confidence increased globally, our management actions drove record consultant productivity, leading to a strong recovery in fees and profits," commented Chief Executive Alistair Cox.
Looking ahead, Hays laid out plans to target underserved markets, with "clear signs of skill shortages and wage inflation in certain industries, particularly Technology and Life Sciences".
International markets were singled out as potential growth area, with international sales representing 78% of the group's net fees in the year, compared with just 25% in 2005.
The new financial year had been started with good momentum, Hays noted.
"We now see a clear route back to, and then exceeding, pre-pandemic levels of profit, faster than we envisaged even six months ago," added Cox.
By Will Paige; [email protected]
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