Hays PLC (LSE:HAS) has reported record fees in its financial third quarter driven by strong growth in Germany and robust demand for temporary staff.
Like-for-like net fees in the quarter to March 31 2023 rose by 5%, boosted by a strong 11% increase in temporary billings (59% of the group total), while demand for permanent staff softened with fees down 2% as placement volumes reduced through the quarter driven by reduced client and candidate confidence.
The international recruiter said growth in temp and contracting fees was driven by actions to increase fee margins and a focus on higher value markets, together with the positive effects of wage inflation.
Fees in Germany climbed by 23%, a new record, with temp & contracting up 25% driven by volume growth and positive pricing.
But in the UK & Ireland, fees fell 2% with modest growth on the temp side offset by an 8% fall in permanent placements.
Australia & New Zealand fees fell 8%, Asia decreased by 4% and The Americas, described as “challenging” slipped 15%.
Hays expects second-half operating profit and conversion rate to be modestly above the first half assuming overall activity levels remain stable in its fourth quarter.