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The Markets
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Business & education services

Hays sees strong profits as permanent jobs increase

Recruitment group said permanent recruitment fees rose 14% in the quarter

Growth in permanent job placements is set to fuel strong annual profits at recruitment group Hays (LON:HAS).

Hays said fees from permanent recruitment had increased by 14% in the three months to June 30, driving group net fee growth of 9%.

The group hailed good growth in Asia Pacific, including 7% growth in Australia & New Zealand where Perm was up 21%.

It also cited a good performance in Europe and the rest of the world, including 6% growth in Germany, 4% growth in France and "good broad-based growth" in the UK.

In Britain, permanent recruitment increased 13%, including a 10% rise in construction & property and IT.

Hays said it expected strong operating profit growth for the full year, with second half operating profits slightly ahead of first half, despite the material negative impact of foreign exchange movements.

The group said it believed it had many clear opportunities to continue growing its business in all regions.

Chief executive Alistair Cox said: "All three of our key regions have delivered further good growth, led again by our permanent recruitment business which resulted in a successful end to the financial year.

"In the UK the clear election outcome removed a potential uncertainty from the recruitment market and our business has performed well."

Hays' shares rose 7.8p to 164.6p in mid-morning trading in London.

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