It’s almost become the norm for recruitment firm Hays (HAS) to report record revenues with each update and the third quarter was no exception.
As well as racking up 19 individual country records during the quarter, the group posted its biggest ever month for fees last month.
ANOTHER STRONG QUARTER
For the three months just ended, Hays registered a 29% increase in net fee income with like-for-like growth even stronger at 32%.
Every region contributed a strong performance, demonstrating the robustness of the global employment market currently.
Germany, which makes up 27% of fees, had a record quarter with a 32% increase in receipts helped by a record month for contractor numbers and overall fees in March.
Rest of The World, which encompasses continental Europe ex-Germany, the Americas and Asia and makes up 35% of group income, also produced a record quarter with 36% organic net fee growth.
There were record performances from Brazil, France, Italy, Spain, Poland and the USA, while Canada posted 64% growth and Japan, another key market, posted 42% growth.
The UK and Ireland, which represent 22% of net fees and swung back to profit in the first half, saw growth of 29% led by an ‘excellent’ performance in permanent hiring, up 59%, driven by the private sector.
Australia and New Zealand, which make up the remaining 16% of group revenues, grew fees by 24% with activity picking up at the end of the quarter as lockdown restrictions eased.
LEAVING RUSSIA
At the start of last month Hays announced that due to the conflict in Ukraine it would close its offices in Moscow and St Petersburg, cease trading with immediate effect and exit Russia.
In the six months to December, the first half of Hays’ current financial year, Russia represented around 1% of group net fees, or £5.9 million, and £0.8 million of operating profit.
The firm has put aside £5 million of provisions for one-off closure costs, which will be expensed in the second half to the end of June.
Excluding this one-off impact, the company repeated the guidance given at its last update for full year operating profits of between £210 million and £215 million.
Hays shares were trading lower by 0.7% at 119 in mid-morning trading, in line with the weaker UK market.
