Hays reports strong growth globally

In the United Kingdom and Ireland, which a year ago accounted for 36 percent of annual net fees, Hays said underlying net fees rose 6 percent in its first quarter, versus the 9 percent rate recorded in the previous three months.

Hays’s shares fell 4.1% to 139.6p, however, as investors seized on cautious comments about the economy and the dent being put in revenues by exchange rate movements.

Today’s report said six regions in the country posted 5% growth, while the City of London saw a 3% rise in net fees. On a constant currency basis, net fee income-an important financial measure in the recruitment industry-was up 8% in the quarter from the same period past year.

Analysts at UBS called the first quarter result in the United Kingdom disappointing, noting: “Excluding an “exceptional” education result in September, the public sector has seen increasing caution”.

Alistair Cox, chief executive officer of Hays said the company is “mindful of current macro-economic risks” ahead.

For the group as a whole, underlying net fee growth reached 8% in the first quarter, and the company said in a statement it had had a good start to the new financial year, with all three key businesses delivering further growth.

“In Germany, growth accelerated as we capitalised on our recent head count investments there”.

“This will involve further targeted investment where we see clear opportunities for growth, and continually working to improve consultant productivity globally in order to deliver our long-term profit and cash objectives”.

A positive boost from the UK’s strong jobs market was not enough to offset the negative impact of a weak euro for recruiter Hays, it said this morning, pushing its share price down 6.7 per cent.

The United Kingdom saw growth in IT, construction and property, while finance and accountancy remained flat.