9th Oct 2014 06:34
LONDON (Alliance News) - Recruiter Hays PLC Thursday said net fees grew across its regions and segments in the first quarter of its financial year, with its major markets of the UK, Australia and Germany growing simultaneously for the first time in nearly four years, although it continued to be hit by the strength of sterling.
In a statement, the company said net fees grew 4% in the three months to end-September, or 9% on a like-for-like basis, which strips out the impact of acquisitions and currency movements. Its said growth from permanent placements was 12% and was 7% from temporary placements.
It was hit by sterling's strength against the euro and Australian dollar, which accounted for much of the difference between its actual and like-for-like figures.
It reported broad-based like-for-like growth of 13% in the UK & Ireland, driven by permanent placement growth of 20%. Its major specialisms of Accountancy & Finance, Construction & Property and IT all grew by over 15% on a like-for-like basis.
"Elsewhere many European, Americas and Asian markets continued to improve and 11 of our businesses delivered record quarterly net fees, including key businesses such as Canada, Switzerland and Germany," Chief Executive Alistair Cox said.
"While we are mindful of the risks our world faces today, most of our markets continue to improve and we are focused on capitalising on the opportunities this presents us. This means continuing to invest to make our business more productive, while simultaneously increasing consultant capacity where market demand dictates," he added.
Actual growth was down 1% in Asia Pacific in the quarter, but up 6% on a like-for-like basis, while actual growth was flat in continental Europe and the rest of the world, compared with 8% growth on a constant currency basis and stripping out acquisitions.
Australia returned to growth for the first time in two years, with net fees up 2% on a like-for-like basis.
Hays increased its own headcount by 4% during the quarter, meaning headcount was up 8% year-on-year.
It added that cash performance in the quarter was in line with expectations, with net debt at the end of September at about GBP60 million, compared with GBP63 million at the end of June and about GBP97 million at the end of September 2013.
By Steve McGrath; [email protected]; @stevemcgrath1
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