30th Aug 2018 09:26
LONDON (Alliance News) - Hays PLC said Thursday its annual profit jumped 17% on the back of increased net fees and revenue, as it lifted its total payout by 18%.
For the year to the end of June, the job recruiter posted pretax profit of GBP238.5 million, up from GBP204.6 million a year ago.
The sharp profit hike was on the back of a "record" net fees increase of 12% to GBP1.07 billion from GBP954.6 million, as turnover rose 13% to GBP5.75 billion from GBP5.08 billion a year ago.
"2018 was a landmark year for the group. We successfully completed our ambitious 2013 plan, passed GBP1 billion in net fees for the first time and 22 countries delivered all-time records," Hays Chief Executive Officer Alistair Cox said.
By geography, the company's Australia & New Zealand business increased operating profit by 14% and Germany by 4%. Meanwhile, UK & Ireland operating profit jumped 13% on good cost control and Rest of World saw operating profit soar 51%.
"Our Rest of World business was the standout performer with excellent profit growth of 51%, despite significant investment. We further strengthened our leading positions in key markets like Australia and Germany, and our UK business delivered a good profit performance, despite macro uncertainty," Cox added.
Hays declared an 18% increase in its final dividend to 3.81 pence per share from 3.22p. Meanwhile, it proposed a special dividend of 5.00p per share, 18% higher year-on-year from 4.25p. This mean that the recruiter lifted its total payout by 18% to 8.81p from 7.47p.
"Looking ahead, conditions remain positive in virtually all of our markets. We are investing significantly in key growth markets where we see structural and market share opportunities, notably Germany, France and the USA," Cox said.
The company said it expects first quarter headcount growth between 3% and 5% including the impact of the "normal seasonal graduate intake".
Hays added that in the UK, "conditions remain uncertain but stable".
Hays shares were trading down 5.0% at 192.60 pence early Thursday morning.
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