(Alliance News) - Hays PLC said Thursday its net fees dropped in the final quarter of its financial year through declines in all regions, leading to expectations of a sharp fall in annual operating profit.
For the three months to the end of June, the FTSE 250 recruiter said group net fees dropped by 34% both on an actual and like-for-like basis, as markets were heavily affected by the Covid-19 pandemic.
The company said that it expects operating profit for the year as a whole to be GBP130 million to GBP135 million, down 46% to 48% from GBP248 million the year before.
London-based Hays said that its UK & Ireland geographical segment fell the hardest, with net fees down by 42% as the public and private sectors were both tough in extremely challenging market conditions.
Meanwhile, net fees in the Australia & New Zealand region fell by 31%, as lighter lockdown restrictions in Australia were offset by tighter containment measures in New Zealand.
Net fees in Germany dropped by 31%, affected by the effect of the pandemic, specifically by under-utilisation in its Temporary businesses. Overall business confidence remains low and clients continue to closely control costs.
Finally, the Rest of the World unit had a net fee drop of 30%, with all countries classified under the segment reporting losses, particularly France, Spain, Greater China and Latin America.
"The pandemic has severely impacted all our markets globally. As it developed, our priority was to look after all our people and to support our business as it adjusted immediately to new realities. Facing conditions far harsher than any I have known, our business stood up well to that test. I am immensely proud of the commitment and innovation shown by all our colleagues in helping our clients and candidates deal with the crisis. Overall, we have both protected our business, while taking actions to appropriately reduce costs," said Chief Executive Alistair Cox.
Net cash as at June 30 stood at GBP365 million, compared with GBP129.7 million the same date the year before.
Shares in Hays were down 3.2% at 122.50 pence on Thursday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Hays (HAS)
