Hays lifts FY profit guidance after solid first half

Recruiter Hays lifted its profit guidance for 2022 on Thursday as it posted a rise in first-half profit as hiring picked up in Germany and the UK.

In the six months to the end of December, pre-tax profit surged 363% to £97.7m, with net fees up 34% to £565.3m. Basic earnings per share came in at 4.08p, up from 0.75p in the same period a year earlier.

Hays hailed an "excellent" performance in all regions, driven by its investments to capitalise on the strong rebound in client and candidate confidence.

Germany, the company’s largest business, led the profit growth, while the UK also rebounded sharply. Fees were up 38% in Germany to £143.6m, and 39% in the UK and Ireland to £127.8m.

As a result of the solid performance, Hays now expects FY22 operating profit to be between £210m and £215m, ahead of consensus expectations of £203.5m.

Chief executive Alistair Cox said: "Performance in all regions was excellent, and our actions to capitalise on strong market conditions helped drive record half-year group fees, including 21 country records, and the highest profit growth in our history. At the same time, we made our highest ever level of investment to underpin further long-term growth.

"As the economic recovery accelerated globally, client and candidate confidence strengthened, leading to significant skill shortages across all our markets. Our expert consultants were busier than ever to help meet this demand."

As far as current trading is concerned, Hays said it was performing strongly across all of its major markets. "Client and candidate confidence remains high and there is clear evidence of skill shortages and wage inflation, particularly in sectors such as Technology and Life Sciences," it said.

The company also announced on Thursday that group finance director Paul Venables has decided to retire at the end of September. He will be succeeded by James Hilton, who has been group financial controller since 2018.