18th Oct 2016 06:25
LONDON (Alliance News) - Recruitment company Hays PLC on Tuesday said good growth in its Asia Pacific and European businesses offset a slump in activity in the UK & Ireland in the first quarter of its financial year.
The FTSE 250-listed firm said total net fee income rose 17% in the quarter to the end of September year-on-year, boosted significantly by translation of overseas income into the weak pound. Like-for-like net fees, in constant currencies, were up 3.0% in the quarter.
Asia Pacific net fees were up 30% and by 5.0% on a like-for-like basis, while fees for the Continental Europe & Rest of World division rose 33%, or by 13% like-for-like.
In Asia Pacific, Australia activity was boosted by good public sector recruitment, while strong growth in Germany and France underpinned growth in the European business.
But net fees slumped 10% in the UK & Ireland in the quarter, hit by a step down in permanent recruitment activity in the immediate aftermath of the UK's vote to leave the European Union. This wiped out a broadly stable temporary recruitment performance.
"Looking ahead, Europe continues to deliver strong, broad-based growth and market conditions remain supportive in Australia and the Americas, where we continue to invest. In the UK we have a strong, market-leading and diverse business, led by a world-class management team who are highly experienced in managing through fast-changing and uncertain times," said Alistair Cox, Hays's chief executive.
"As ever, our focus remains on driving profitable growth in our business, capitalising on long-term opportunities, while maximising earnings and cash along the way," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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