16th Jul 2019 09:36
(Alliance News) - Hays PLC said on Tuesday total net fees were flat year-on-year during its financial fourth quarter but said that on an underlying basis, it was the recruitment company's 25th consecutive quarter of growth.
Hays said that on an underlying basis, group net fees grew about 1% during quarter that ended June 30.
The company said that it expects operating profit of GBP248.0 million for the full year, in line with market expectations, up about 2% from GBP243.4 million the year before.
The recruiter's UK & Ireland geographical segment saw net fees fall 2%, also 2% like for like. The company said the UK & Ireland market was "more subdued, particularly in the private sector".
Net fees in the Australia & New Zealand region fell by 5% in total and 3% like-for-like amid "mixed market conditions".
Like-for-like means organic growth of continued operations at constant currency.
Hays's operations in Germany and also the Rest of the World - its largest segment at 34% of total net fees - offset these losses as they both rose year-on-year.
Germany had a 2% total rise, also 2% like-for-like, despite "a more challenging macroeconomic backdrop".
The Rest of the World segment - driven by growth in Asia, Mexico, Canada and Brazil - delivered a 3% increase in net fees, 2% on a like-for-like basis.
Chief Executive Alistair Cox said: "We delivered a solid end to our financial year with underlying fees up 1% and strong cash generation, despite tough comparatives, more mixed macroeconomic conditions and some signs of reduced business confidence.
"Looking ahead, we are mindful of economic and political uncertainties and will continue to focus on driving consultant productivity, while making selective investments in our key markets to reinforce our market leadership."
Net cash at the end of the quarter stood at GBP130.0 million compared with GBP122.9 million from the end of June in 2018.
Shares in Hays were down 1.7% at 148.90 pence each in London on Tuesday morning.
Related Shares:
Hays