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Business & education services

Hays takes hit from 'Brexit' uncertainty

Recruitment firm said UK business weakened significantly at the end of the financial year

Recruitment group Hays plc (LON:HAS) reported higher annual profits but warned that UK business had taken a hit from 'Brexit' uncertainty.

Hays said strong fee growth in Asia Pacific, continental Europe and the rest of the world had driven a 13% rise in operating profit to £181mln in the year to June 30.

The group said UK profits had increased 14% to £52.1mln, but warned that net fees were flat as rising concern about the economic outlook affected client and candidate performance.

It said uncertainty lifted in the period leading up to, and immediately after, the EU referendum on June 23.

"We saw activity levels weaken significantly at the end of the financial year," the group said in its results statement.

Hays, which has 9,214 employees in 252 offices in 33 countries, nevertheless said it was on track after three years with a five-year plan to broadly double its operating profits.

Chief executive Alistair Cox said: "We enter our new year in a position of strength, with a diverse, balanced and resilient global business, the strongest balance sheet we have had for many years and supportive conditions in many of our markets.

"Following the EU referendum, there is increased uncertainty in the UK market, but we have seen no evidence of any impact elsewhere.

"It is too early to tell what the longer term impact may be and as ever, we will monitor activity levels closely."

The company increased its full-year dividend by 5% to 2.9p.

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