Hays reports good growth despite UK pressures

By region, Asia Pacific grew 3% on a like-for-like basis, while the UK and Ireland fell 3%. Continental Europe and Rest of World outperformed, with fees advancing 11%.

Performance was particularly strong in France, up 19%, and the IS, up 25%.

The poor performance in the British Isles was blamed on the public sector, which was down 9%. Private sector fees were flat, with the firm saying client sentiment remained cautious.

Hays’ total headcount was up 4% year-on-year but down 3% during the quarter, as it focused on delivering continued profit performance.

Net debt at the end of March was put at £45m, down from £56m at the end of December, with the firm expecting further material reduction in the fourth quarter as it targeted a net cash position.

"We had a good start to the second half and delivered our twelfth consecutive quarter of year-on-year growth,” said chief executive Alistair Cox.

“Europe delivered excellent results, including a strong underlying performance in Germany and France, 13 countries growing by over 10%, and record performances in important businesses such as Belgium and Spain,” he added.

Cox said the US was now the company’s fifth largest market, delivering excellent results, while conditions in Australia remained mixed with strong growth in New South Wales, Victoria and the public sector markets offset by the mining regions.

“Looking ahead, our good underlying financial performance around the world gives us confidence for our full year prospects,” Cox explained.

“Conditions in many markets remain good, and we are delivering excellent results across Europe and the US. In the UK, client sentiment remains cautious and we expect this to continue through Q4.

“Against this overall backdrop, our focus remains on delivering continued strong profit growth."