Hays PLC on Tuesday reported that net fees rose by a double-digit percentage in its second financial quarter as its Germany-based business grew significantly higher than other regions.

Meanwhile, it anticipated a fall in half-year operating profit for the six months to December 31.

In the three months ended December 31, the London-based recruitment company said net fees recorded 11% growth against the previous year, driven by increased fee margins and the targeting of higher-value markets. On a like-for-like basis, growth was 8%.

The growth was driven by Germany, where net fees grew by 25%, or 22% on a like-for-like basis.

Meanwhile, Hays’s UK & Ireland business climbed by 4% for both, while Australia & New Zealand were down 1% on an actual basis and down 4% on a like-for-like basis. In the rest of the world, net fees rose by 11% on an actual and 6% on a like-for-like basis.

In the first half of financial year 2023 to December 31, operating profit was between £95 million and £97 million, at least 4.5% lower than £101.6 million a year prior.

The company explained that Germany having three fewer trading days in the second quarter due to the timing of public holidays versus a year ago negatively impacted its fees and operating profit by around £5 million.

Hays added that the closure of its Russian business in March 2022 negatively impacted its first half’s operating profit by around £1 million versus a year ago.

‘For the first time in seven quarters, our largest business of Temp & Contracting grew faster than Perm, and Temp volumes increased through the quarter, while overall Perm volumes decreased modestly. Around the world we delivered a number of quarterly fee records, including our largest market of Germany, in Europe, Middle East & Africa and our global Technology business,’ Hays said.

Hays shares were 2.8% higher at 122.30 pence each in London on Tuesday morning.

Copyright 2023 Alliance News Ltd. All Rights Reserved.