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Hays reports net fee income up 12% in quarter

July 14, 2016

Net fees at UK-based global staffing firm Hays plc rose 12% in the company’s fiscal fourth quarter ended June 30, the company reported in an update released today. On a like-for-like basis — which represents organic growth at constant currency — net fees rose 8%.

The strongest growth was in continental Europe and the rest of the world, where net fees rose 21% on a like-for-like basis. However, Asia Pacific net fees rose 4% on a like-for-like basis.

“Europe delivered further excellent growth, benefiting from all-time record performances in Germany and France, among 13 European countries to grow by over 20% [like-for-like],” CEO Alistair Cox said. “Our Australian business continued its recovery, with strong growth in New South Wales, Victoria and in the public sector markets, partially offset by continued tough conditions in the mining-focused regions.”

However, net fees fell 4% on a like-for-like basis in the United Kingdom and Ireland markets.

“In the UK the public sector recruitment market remained challenging, while private sector sentiment weakened in the run up to the EU Referendum,” Cox said.

Hays includes US results in its continental Europe and rest of world segment. Net fees in the US rose 12% on a like-for-like basis.

Looking at the company as a whole, temporary staffing net fees rose 10% on a like-for-like basis — temporary staffing represents 58% of the Hays’ total net fees. The company also reported direct hire revenue rose 6% on a like-for-like basis.

Hays has 248 offices in 33 countries.

Shares in Hays closed up 5.46% at £113.90 (US$150.86).