9th Jul 2015 07:15
LONDON (Alliance News) - Recruiter Hays PLC Thursday reported growth in net fees for the fourth quarter, driven by its permanent recruitment business, though figures were hurt by the depreciation of the euro and Australian dollar against sterling.
Despite the pressure from foreign exchange movements, FTSE 250-listed Hays reiterated its guidance that second half operating profit will be "slightly ahead" of the first half's GBP81.5 million. Hays said currency movements remain a "material sensitivity" to profitability in the new financial year.
Chief Executive Alistair Cox said good growth in key regions, led by the permanent recruitment business, enabled the recruiter to make a "successful" end to the financial year ended June 30. Fourth-quarter temporary recruitment net fees grew by 2%.
By region, the UK and Ireland showed growth of 9%, Continental Europe & Rest of World was up 4%, and Asia Pacific grew by 1%.
"We have made further significant operational and strategic progress this year, underpinning the strength of our business globally. As a result, we will deliver strong operating profit growth for the full year, with second half operating profits slightly ahead of first half, despite the material negative impact of foreign exchange movements. Looking ahead, we see many clear opportunities to continue growing our business in all our regions," Cox said in a statement.
"Our focus remains on selectively increasing consultant capacity to service this increased demand for our services, as well as continually improving our consultants' productivity globally in order to deliver our long-term profit and cash objectives," Cox added.
Hays shares were down 0.5% at 156.10 pence on Thursday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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