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View All NewsHays reports global revenue up 2% in first half; US standout performer says CEO
Global staffing firm Hays plc reported turnover, or revenue, rose 2% in the six months ended Dec. 31, the first half of its fiscal year. The increase was 3% on a “like-for-like” basis, which measures change on an organic basis at constant currency. However, half-year net fees (gross profit) fell. But US operations were a bright spot for the company.
“The Americas performed well, with the USA a standout performer and one of seven countries which produced record half-year fees,” Chief Executive Alistair Cox said.
Gross profit in the US rose by 12%, but gross profit fell by 5% in Canada. The company has plans to increase headcount in the US. Meanwhile, in Canada, gross profit fell by 5%.
| (£ millions) | Six months ended Dec. 31, 2019 | Six months ended Dec. 31, 2018 | % change | % change like-for-like | Six months ended Dec. 31, 2019 (US$ millions) |
| Turnover (revenue) | £3,104.7 | £3,035.4 | 2% | 3% | $4,072.1 |
| Net fees (gross profit) | £553.1 | £568.0 | -3% | -2% | $725.4 |
| Profit after tax | £67.4 | £85.2 | -21% | - | $88.4 |
The US and Canada are included in the company’s “rest of world” segment, which comprises 28 countries, including parts of Europe, Asia Pacific and other areas of the Americas.
Outside of the rest of the world segment, net fee income fell with the largest decrease, on a like-for-like basis, in Germany. The company cited a sharp slowdown in that country.
“In Germany, trading was increasingly difficult, with reduced business confidence and greater client cost control, particularly in automotive,” Cox said. Australian revenue was impacted by fires there, and conditions in the UK remained uncertain.
Net fees by geography
| (£ millions) | Six months ended Dec. 31, 2019 | Six months ended Dec. 31, 2018 | % change | % change like-for-like | Six months ended Dec. 31, 2019 (US$ millions) |
| Australia and New Zealand | £94.8 | £101.5 | -7% | -4% | $124.3 |
| Germany | £144.9 | £153.7 | -6% | -5% | $190.1 |
| United Kingdom and Ireland | £126.7 | £131.7 | -4% | -4% | $166.2 |
| Rest of World | £186.7 | £181.1 | 3% | 2% | $244.9 |
For a full report on Hays’ results, click here for a report from SIA’s UK office.
Share price and market cap
Hays shares closed down 0.37% today in London to £161.70 (US$209.68); the company had a market cap of £2.38 billion (US$3.09 billion), according to FT.com.