Global staffing firm Hays plc reported net fees, or gross profit, rose 1% in its fiscal first quarter ended Sept. 30 compared to the same quarter last year amid tougher business conditions. Gross profit also rose 1% at the UK-based company on a “like-for-like” basis, which represents organic growth of continuing operations at constant currency.

“We have delivered a solid quarter of stable net fees, despite tougher global macroeconomic conditions and reduced business confidence,” Chief Executive Alistair Cox said. “Even with these challenges, 10 countries grew fees by more than 10%, and we produced eight quarterly country fee records, including the USA and China.”

Temporary gross profit rose 1% while permanent gross profit rose 2%; however, both were flat on a like-for-like basis.

Gross profit in Q1 year-over-year change

In Germany, gross profit was flat like-for-like, but was down 2% when adjusted for working days. Germany, the UK and Australia had an additional working day in the first quarter.

Gross profit fell 4% on a like-for-like basis in the UK and Ireland but was down 5% when adjusting for trading days.

“Growth in our public sector business, which represented 28% of UK&I net fees, was good at 6%,” according to the company. “In the private sector, net fees fell by 7%, as business confidence continued to be impacted by ongoing uncertainties. Additionally, candidate confidence also weakened across the quarter.”

Hays’ “rest of world” geography comprises 28 countries spanning Europe, excluding Germany, the UK and Ireland; the Americas; and Asia.

Gross profit in the Americas rose 7% on a like-for-like basis driven by the US, the company’s second-largest market in its “rest of world” category. Gross profit in Mexico rose by 36%, but gross profit in Canada fell by 5% during the first quarter.