Hays posts rise in first-half profit, net fees

FTSE 250 recruiter Hays reported a rise in profit and net fees for the first half of the year, thanks in particular to solid performances in Germany and Australia.

In the six months to the end of December, net fees were up 3% on a like-for-like basis to £465.5m, while pre-tax profit rose 17% to £96.2m and the company lifted its dividend per share to 0.96p from 0.91p.

Operating profit in the period increased to £100.1m from £86.3m and Hays ended the half with £48m net cash.

In Germany, the group saw record first-half operating profit of £39m and net fee growth of 10%. Meanwhile, in Australia and New Zealand, net fees were up 9% and operating profit grew 16%.

The performance in the UK and Ireland was much less impressive, with net fees down 10% and operating profit down 29%.

Chief executive Alistair Cox said: “This has been a good first half, with further net fee and profit growth and strong cash generation. Conditions remained supportive in many key markets, especially Germany, our most profitable business, where we delivered another all-time record performance, and Australia where activity accelerated significantly through the half. In the UK, after a marked step-down immediately after the EU referendum, markets quickly stabilised and we saw early signs of improvement towards the end of the half in the private sector recruitment market, which have continued into the start of the second half.

“Looking ahead, the scale, balance and diversity of the business we have built, combined with our world-class, highly experienced management teams, stands us in good stead. The vast majority of our markets remain positive, we have many opportunities to grow and we look to the future with confidence."