Hays reports strong quarterly growth as Germany boost outweighs Brexit slowdown
Recruitment firm Hays delivered strong growth in the second quarter as rising fees in Germany outweighed the impact of Brexit uncertainty.
The company said like-for-like net fees rose nine per cent in the three months to the end of December, with equal growth across temporary and permanent roles.
Read more: Smaller companies forced to compete for London’s stretched talent pool
Hays said Germany, its largest market, was the driving force behind the growth, with fees soaring 15 per cent. The market also benefited from additional trading days compared to the year before.
But the company’s UK and Ireland division lagged behind, rising only three per cent, as economic uncertainty takes its toll on staffing companies.
Chief executive Alistair Cox said: “While activity levels at the start of the New Year will be an important driver of the group’s second half performance, and we remain mindful of macroeconomic conditions, the outlook is good across most international markets.”
The update comes a day after fellow recruitment firm Page Group saw its shares tumble after warning of a slowdown in the UK job market due to Brexit concerns. Page Group also enjoyed strong growth in Germany, with fees up 28 per cent.
Hays, which focuses on recruitment for white collar professions, said it ended the second quarter with net cash of roughly £30m after paying special and final dividends.
Read more: How co-working spaces will transform the office environment
“We continue to invest in key structural growth markets like Germany, the USA and Asia, capitalising on the clear opportunities we are seeing,” said Cox.
“Our diverse and balanced global business, together with our highly experienced management teams, mean we look to the future with confidence.”
Hays reports strong quarterly growth as Germany boost outweighs Brexit slowdown
NULL