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Business & education services

Hays reports higher half-year profit thanks to rising talent

Hays PLC's half-year profit quadruples, helped by increased hiring

Hays PLC's (LSE:HAS) revealed its half-year profit has quadrupled, helped by increased hiring in the UK and Germany.

The British recruitment agency this morning also raised its operating profit expectation for the entire year.

The company announced that its group finance director, Paul Venables, will retire on September 30 after 16 years at the company. He will be succeeded by James Hilton, the group financial controller at Hays since 2018.

Germany, Hays' largest business, led profit growth, with the UK also rebounding sharply.

For FY22, Hays anticipates an operating profit between £210mln and £215mln, an increase over the £200mln target it set in January.

In the six months ended December 31, Hays reported a pre-tax profit of £97.7mln, up 363% from £21.1mln a year earlier. Profit was also up 2.2% from pre-pandemic levels.

The board has declared an interim FY22 core dividend of 0.95p per share and expects to announce a substantial special dividend in respect of FY22 at its prelims.

"Performance in all regions was excellent, and our actions to capitalise on strong market conditions helped drive record half-year Group fees, including 21 country records, and the highest profit growth in our history," chief executive officer Alistair Cox said in a statement.

"As the economic recovery accelerated globally, client and candidate confidence strengthened, leading to significant skill shortages across all our markets," he added.

Taking advantage of both cyclical recovery and developing leading positions in the market segments with the greatest long-term potential, the company is confident of gaining market share.

Staffing by the firm is provided in several specialist sectors including technology, accounting and finance, and life sciences.

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