Hays posts another record quarterly net fee performance

FTSE 250 recruiter Hays reported another record quarterly net fee performance on Thursday as all its divisions saw solid growth.

In the quarter to 30 September, total net fees were up 10% on a like-for-like basis, with 13% growth in Continental Europe and Rest of World - which represents 50% of group net fees - driven by Germany, where fees rose 15%.

In Asia Pacific, net fees were up 14%, with fees in Australia 15% higher than the previous year, while Asia saw net fees grow 18%.

It was a less cheery picture in the UK and Ireland - which account for 25% of group net fees - with an uptick of just 1%. The company said it was seeing continued signs of "modest improvement" in the private sector business. Hays' temporary business was flat, taking a hit from "tough market conditions" in the public sector and the impact of the IR35 regulations.

Chief executive Alistair Cox said: "We have made a strong start to the new financial year with all divisions growing. Continental Europe delivered further strong, broad-based growth, led by a record net fee performance in Germany, our largest business in the world, as we continued to invest in consultant headcount. Australia delivered another strong quarter of double-digit growth, which was uniform across all states and specialisms. We continued to see modest improvements in our UK private sector business, which returned to growth, although this was largely offset by a tough public sector market.

"Looking ahead, conditions remain good in the vast majority of our International markets. In the UK, market conditions remain stable overall. Our diverse and balanced global business, together with our highly experienced management teams and our strong balance sheet means we are well positioned to capitalise on the many clear growth opportunities we currently see across the vast majority of our markets, while maximising earnings and cash along the way."

At 0820 BST, the shares were up 0.5% to 191p.