Hays PLC on Thursday said net fees declined as expected in the first quarter of its financial year, noting a ‘record’ quarter in the prior year.

The London-based recruitment company said net fees declined by 9% year-on-year in the three months that ended September 30. The Australia & New Zealand region led the fall, down 27%, followed by the Rest of World region with a 13% decline and the UK & Ireland with 11%. In contrast, net fee income in Germany climbed 7% annually.

Chief Executive Officer Dirk Hahn, who started his role last month, said: ‘We are market leaders in highly attractive structural growth markets, including Germany, enterprise clients and technology, and we have a clear strategy going forward. My focus is on excellence of execution, including driving consultant productivity and increasing group profitability.’

Annually, the number of employees was reduced by 9% as the company focused on boosting productivity.

‘Our key strategic markets continue to face skill shortages and group fees continued to be supported by wage inflation and positive pricing,’ Hays said.

Looking ahead, the company said that financial 2024 started in line with its own expectations as it continued to benefit from the positive effects of mix and margins. It expects that operating profit will decline due to foreign exchange rates and working day impacts, as Hays targets structural growth opportunities.

Hays shares were 0.1% higher at 103.00 pence each on Thursday morning in London.

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