Hays PLC - London-based recruitment company - Notes resilient performance in the quarter ended on June 30, with group fees down 2%. Records solid growth in its Temporary segment, up 4% with volumes sequentially stable through the quarter. Says growth in the Permanent segment is down 9% with reduced client and candidate confidence. Looking ahead, expects operating profit for financial 2023 to be in line with market consensus expectations of about GBP196 million. For financial 2022, operating profit was GBP210.1 million.
Chief Executive Alistair Cox says: "We delivered a resilient [fourth quarter] performance against a tougher market backdrop, and we expect [financial 2023] operating profit will be in line with market expectations. Growth was again driven by Temp & Contracting, our largest business and key strategic focus, where volumes were stable overall, however Perm hiring processes continued to lengthen. Germany performed strongly, EMEA produced good fee growth and we also grew fees with our Enterprise clients globally, as we leveraged our network and capabilities to deepen customer relationships."
Back in February, the company reported pretax profit of GBP94.0 million for the six months that ended on December 31, down 3.8% from GBP97.7 million the year before. Net fees rose by 15% to GBP651.9 million from GBP565.3 million a year before.
Current stock price: 102.70 pence each, down 1.7% on Thursday morning in London
12-month change: down 12%
By Xindi Wei, Alliance News reporter
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Hays (HAS)