14th Jul 2016 06:17
LONDON (Alliance News) - Recruiter Hays PLC on Thursday said strength in its Europe division helped total net fee income grow in the fourth quarter of its financial year and said its operating profit will outpace market expectations, despite a sluggish and Brexit-hit UK market.
The FTSE 250-listed headhunter said total net fees grew 12% in the quarter to the end of June, with like-for-like growth of 8.0%.
The firm's Continental Europe & Rest of World division delivered total net fee income growth of 29% in the quarter, driven by very strong trading in Germany, Belgium, France and Switzerland. Like-for-like growth in the division was 21% for the quarter.
But net fees in the UK & Ireland fell 3.0% in the quarter and by 4.0% on a like-for-like basis, reflecting continued softness in public sector recruitment and a weakening of sentiment in the private sector ahead of the EU referendum vote.
Asia Pacific net fees grew 7.0% and by 4.0% on a like-for-like basis, with good growth in Australia offsetting a weaker performance in Asia.
Hays said full-year operating profit is anticipated to be around GBP180.0 million, ahead of current market expectations.
Chief Executive Alistair Cox said "conditions in most international markets remain supportive and although there is significantly increased uncertainty in the UK, it is too early to say how the result of the referendum will impact our results going forward."
By Sam Unsted; [email protected]; @SamUAtAlliance
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