Hays full-year profit, net fee income up

Net fee income rose to £810.3m from £764.2m, with operating profit up 10% to £181m and pre-tax profit 11% higher at £173m.

Basic earnings per share increased 14% to 8.48p and the company lifted its full-year dividend by 5% to 2.90p per share.

Hays said it saw strong net fee growth of 15% in Continental Europe and Rest of World, but net fees in the UK and Ireland were flat, with trading conditions becoming more challenging as the year progressed.

Chief executive Alistair Cox said: “This is an excellent financial performance, with both earnings and cash ahead of market expectations. We delivered strong, broad-based net fee growth in our international businesses, with 22 countries growing by 10% or more, and an excellent UK profit performance. After three years, we remain in line with our five-year aspiration to broadly double the group's operating profits. We also achieved the significant milestone of eliminating the group's net debt.

“We enter our new year in a position of strength, with a diverse, balanced and resilient global business, the strongest balance sheet we have had for many years and supportive conditions in many of our markets. Following the EU referendum, there is increased uncertainty in the UK market, but we have seen no evidence of any impact elsewhere. It is too early to tell what the longer term impact may be and as ever, we will monitor activity levels closely.”