Hays net fees rise in Q1 amid 'strong' performance in Germany
Source - SMW
Recruitment group Hays revealed Thursday higher net fees income in the fiscal first-quarter, led by 'strong' performance in Germany.
For the three months to 30 September, total net fees increased 7% on a headline basis and 9% on a like-for-like basis from a year earlier.
The company's temporary business, which represented 57% of group net fees, grew 8% in the quarter, while net fees in its permanent business, which accounted for 43% of group net fees was up 11%.
The group's exit fee, however, came in below the 7% seen in the first-quarter last year owing to a tougher comparative.
Germany -- Hay's largest market -- saw strong net fee growth of 13% . While, in the UK and Ireland net fees increased 3%, helped partly by easier comparatives.
Looking to the fiscal second quarter, the company said its Germany business will benefit from two additional trading days compared to last year. This was expected to result in an about 1% positive impact on group headline fiscal second-quarter net fee growth , and a 3% positive impact on Germany headline growth.
'We have made a good start to our financial year, delivering another record quarterly net fee performance. Against increasingly tough comparatives, net fees in our International businesses grew by 11%, including 10 all-time records. Germany and RoW continued to perform strongly, Australia delivered its 17th consecutive quarter of growth and, despite ongoing economic uncertainties, our UK business continued to grow modestly,' said Alistair Cox, Chief Executive.
'Looking ahead, while we are mindful of macroeconomic conditions, the outlook remains positive across our International markets. We are continuing to invest in our key structural growth markets, notably Germany, France, the USA and Asia to capitalise on the many opportunities we currently see. We remain focused on driving profitable, cash-generative growth and leveraging our platform, which is the largest and most balanced in our industry. This means we can look to the future with confidence.'
At 8:09am: (LON:HAS) Hays PLC share price was -18.05p at 157.95p