Recruitment firm Hays plc (LON:HAS) expects full year profit to be “marginally ahead” of market forecasts even as Brexit uncertainty hurt fourth quarter net fees in the UK.
The company said operating profit will exceed analysts’ estimates of £209.5mln after delivering a record 7% like-for-like increase in total net fees in the final quarter to 30 June.
Net fee growth was driven by an 11% like-for-like rise in both the Asia Pacific region and the Continental Europe and rest of the world divisions.
Hays shrugged off a 5% decline in like-for-like net fees in the UK and Ireland where Brexit uncertainty knocked business confidence. London suffered the most from a stall in hiring with a 9% drop in net fees.
Two fewer trading days due to the timing of Easter hit activity levels in temporary and contract placements, mostly in Germany, Australia and the UK.
Total group temporary placements rose a like-for-like 6% while permanent placements increased 7%.
Chief executive Alistair Cox said the board is considering increasing shareholder returns in line with the company’s dividend policy after ending the year with a “strong” net cash position of about £110mln.
“The scale, balance and diversity of the business we have built is unrivalled in our industry and our focus remains to deliver sector-leading profits and strong cash generation,” he said.
“These strengths, combined with a strong balance sheet and our world-class, highly experienced teams around the world, stand us in good stead and mean we continue to look to the future with confidence."