Hays PLC (LON:HAS) said net fees fell again in its latest quarter as the recruitment group’s markets continue to be hit by the Coronavirus (COVID-19) pandemic, although the decline was not as large as in the preceding three months.
In its third quarter to end March 2021, net fees fell 10% on a like-for-like basis versus the prior year, compared to a drop of 19% in the company’s second quarter and 29% in its first quarter.
Activity levels improved in all regions and Hays said it saw strong sequential fee growth, particularly in March which delivered its highest period of net fees since the start of the global pandemic. March 2021 fees were about 4% higher than March 2020 fees, although still remain about 13% below March 2019.
As a result of improving net fee performance and good cost control, group operating profit for fiscal 2021 is expected to be at least £85mln, ahead of market expectations, it said.
The current market consensus is for an operating profit for the year to end June 2021 of around £61mln, according to Bloomberg.
"Despite our markets remaining impacted by the pandemic, we continued to see improving momentum across the quarter and I am pleased to say group fees were ahead of our expectations,” said chief executive Alistair Cox.
“This was most evident in our largest market of Germany, driven by increased business confidence and client investments.”