15th Oct 2019 09:18
(Alliance News) - Recruitment firm Hays PLC said Tuesday it delivered a "solid" third quarter of modest growth despite increasingly challenging economic conditions across a number of key markets.
Shares in Hays were 5.2% higher at 151.10 pence in London on Tuesday, the second best performer in the FTSE 250 index.
For the three months ended September, net fees grew 1% on a reported and were flat on a life-for-like basis.
Growth was helped by strength in its largest segment, Rest of World - representing a third of total net fees - which was 7% higher on a reported basis and 4% up like-for-like. This was driven by "record" net fees levels in both the US and China as well as stable growth in Europe, the Middle East & Africa and "good" growth in the Americas and Asia.
Germany - its next largest segment at 27% of total net fees - experienced growth of 1% on a reported basis, and flat on a like-for-like basis, amid "increasingly challenging" macro-economic conditions.
In contrast, both the UK & Ireland and Australia & New Zealand experienced net fee declines. The UK & Ireland - around 23% of total net fees - saw net fees fall 4% on a reported and like-for-like basis amid "increasingly difficult markets". Australia & New Zealand reported a 2% reported and 2% like-for-like net fees decline.
"We have delivered a solid quarter of stable net fees, despite tougher global macroeconomic conditions and reduced business confidence," Hays Chief Executive Officer Alistair Cox said. "Even with these challenges, ten countries grew fees by more than 10%, and we produced eight quarterly country fee records, including the USA and China."
"Asia and the Americas performed well, both growing by 7%," Cox added. "Fees were down slightly in Australia, but remained at near-record levels, while EMEA ex-Germany remained stable. Germany saw increased signs of client cost control, and the UK Private sector remained tough."
"Over many years we have built a highly diversified business which gives us access to the world's most exciting markets and sectors," Cox continued. "Looking ahead, our strong market positions, combined with our highly experienced management teams and financial strength, means I am confident we will continue to appropriately balance investing for the long-term while managing the more challenging markets we currently face."
Net cash at the end of the quarter stood at GBP90 million, up from GBP80 million the year prior.
By Ahren Lester; [email protected]
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