Hays Q2 net fees jump 13% on strong international performance

FTSE 250 recruiter Hays posted a jump in second-quarter net fees on Thursday on the back of growth in its international businesses.

In an update for the quarter ended 31 December, the company said net fees rose 13% overall on a like-for-like basis, with the international businesses, which now represent around 76% of group net fees, contributing the most.

In Asia Pacific, net fees increased 16% on a LFL basis, while Continental Europe & Rest of World saw a 17% rise.

It was a very different story in the UK & Ireland, however, where net fees nudged up just 1%. The private sector business in the UK & Ireland grew 4%, while public sector markets remained tough, with net fees down 8%.

Overall group consultant headcount was up 3% in the quarter and up 13% year-on-year.

Chief executive Alistair Cox said: “We have delivered another strong quarter of broad-based growth with net fees up 13% and 24 of our 33 countries delivering double-digit growth. Performance in Continental Europe was excellent, led by Germany, our largest business, which grew by 19% and where we continued to materially invest in consultant headcount. Australia delivered another strong, market-leading performance and in Asia we delivered excellent growth. In the UK our business remained stable overall.

“Whilst activity levels at the start of the New Year will be an important driver of the group's second half performance, we continue to see strong trading conditions in the vast majority of our international markets. Our diverse and balanced global business, together with our highly experienced management teams and our strong balance sheet means we are well-positioned to capitalise on the many clear growth opportunities we currently see in most of our markets, while maximising earnings and cash along the way.”

At 0803 GMT, the shares were up 1.2% to 190.60p.