Hays plc, the world’s sixth-largest staffing firm, reported net fees, or gross profit, fell 13% on a “like-for-like” basis in its fiscal third quarter ended March 31. However, the UK-based staffing giant reported sequential gross profit improvement; gross profit had been down 34% in the fourth quarter of 2020.

Gross profit growth in Q3 2021

Hays noted gross profit was up 4% in March alone compared the same month last year on a like-for-like basis, which represents year-over-year organic growth of continuing operations at constant currency.

“Despite our markets remaining impacted by the pandemic, we continued to see improving momentum across the quarter and I am pleased to say group fees were ahead of our expectations,” Chief Executive Alistair Cox said. “This was most evident in our largest market of Germany, driven by increased business confidence and client investments. Australia and the UK saw improvement, particularly in Perm, while fees in the Americas and Asia both grew sequentially, led by the USA and China.”

Gross profit in the US was flat on a like-for-like basis but it included a record performance in March. In Canada, gross profit fell 17% like-for-like.

Overall, Hays reported gross profit continues to be impacted by the pandemic. However, there are positives signs. The company reported an increase in the average duration of temporary assignments along with an increase in average temporary hours worked helped by low levels of temporary worker vacations and sickness.

Share price and market cap

Shares in Hays plc closed at £165.40 (US$227.09), 1.31% below their 52-week high set on April 9; the company had a market cap of £2.68 billion (US$3.68 billion), according to FT.com.