Hays PLC (LSE:HAS) will release its full-year results on Thursday, when shareholders could catch wind of a healthy pay-out after its fees grew 23% in the fourth quarter.
Fourth quarter trading showed record quarterly growth in net fees in 15 of the countries in which it operates, boosted by global wage inflation.
Investors will be expecting a healthy shareholder distribution, with the FTSE 250 group's cash position bumped up to £295mln from £237mln at the start of the year and the board “committed to returning significant cash to our shareholders”, including special dividends and share buybacks.
It added that any residual amounts from its share buyback programme would be added to its £100mln cash buffer “when calculating any FY22 special dividend”.
Recruitment firms like Hays tend to perform well when the economy is growing but have “lagged during times of economic uncertainty”, said analysts at Hargreaves Lansdown.
Current conditions are therefore somewhat unusual and it remains to be seen how things play out with recessions seen looming in various economies.
“Costs will be in the spotlight too, as Hays continues to increase headcount,” said the analysts.