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Hays reports fiscal Q3 growth in global operations, including US, but UK net fees decline

April 12, 2018

Hays plc, the world’s sixth-largest staffing firm, reported strong growth in its global operations during its fiscal third quarter ended March 31. However, the London-based firm reported growth in the UK market remained “subdued.”

In a trading statement issued today, Hays reported net fee income — or gross profit — rose 9%, and was up 10% when viewing it on a “like-for-like” basis, which measures organic growth of continuing operations at constant currency. Temporary staffing net fee income rose 9% life-for-like while permanent placement net fee income rose 11%.

Hays has US operations, including Veredus, an IT staffing provider. Hays reports US operations in its “Rest of World” segment, where net fees rose 15% on a like-for-like basis. Looking at just the US results, net fees rose 34% like-for-like while net fees in Canada rose 12%

The “Rest of World” segment also includes Europe (excluding Germany, the UK and Ireland), where net fees rose 11% on a like-for-like basis and Asia, where net fees rose 23% like-for-like.

Hays’ other segments include UK and Ireland, where net fees fell 2% on a like-for-like basis; Australia and New Zealand, where net fees rose 12% like-for-like; and Germany, where net fees rose 16%.

“Our largest overseas businesses of Germany, Australia and France grew strongly, and we saw excellent progress in the Americas and Asia. The UK remains subdued, although overall that business was broadly stable,” Chief Executive Alistair Cox said.