Hays lifts FY profit expectations after record quarter
By Michele Maatouk
Date: Thursday 13 Jan 2022
(Sharecast News) - Recruiter Hays said on Thursday that full-year operating profit was set to come in ahead of market expectations following a record second quarter.
In the quarter to the end of December, fees rose 37% on a like-for-like basis versus the prior year, with growth across all regions. On an LFL basis, fees were up 31% in Australia and New Zealand, 37% in Germany, 33% in the UK and Ireland and 41% in Rest of World.
Fees in the permanent business were 61% higher, while the temporary segment saw a 22% jump.
Given the strong fee performance, Hays now expects operating profit for the year to 30 June 2020 to be around £200m, which is ahead of consensus expectations of £183.5m.
Chief executive Alistair Cox said: "16 countries delivered record quarterly fees, as did Hays Technology, our largest specialism. Our largest country, Germany, delivered record contracting fees, and activity in ANZ accelerated as lockdown restrictions were lifted. The UK, Continental Europe, Asia and the Americas all delivered excellent growth, again led by Perm as business confidence remained high.
"It is too early to quantify how the Omicron variant will impact our New Year 'return to work' trends, which as usual will be a key driver of second half performance. However, client and candidate confidence remain high, with clear signs of skill shortages and wage inflation. Encouragingly, despite significant headcount investment in the past year, consultant productivity is excellent, and we expect to drive productivity further."
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