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View All NewsHays revenue rises in fiscal year but results affected by business confidence, restructuring of operations
Global staffing provider Hays plc, one of the world’s largest staffing firms, reported revenue rose 7% in its fiscal year 2019 on a like-for-like basis, which measures growth on an organic basis at constant currency.
Macroeconomic conditions became increasingly difficult in many of Hays' markets during the period, the company said. While candidate confidence generally remained strong, Hays noted that it saw clear signs of reduced business confidence and faced increasingly tough growth comparatives as the year progressed.
Net fees at the London-based firm rose 6% on a like-for-like basis to £1.12 billion for the full-year ended June 30. Strong net fee growth in Asia and the Americas was partially offset by weaker European markets.
| (£ millions) | FY 2019 | FY 2018 | % change | % change like-for-like | FY 2019 (US$ millions) |
| Turnover (revenue) | £6,070.5 | £5,753.3 | 6% | 7% | $7,703.3 |
| Net fees (gross profit) | £1,129.7 | £1,072.8 | 5% | 6% | $1,433.6 |
| Operating profit | £248.8 | £243.4 | 2% | 4% | $315.7 |
| Profit after tax | £173.6 | £165.8 | 5% | - | $220.3 |
In the Americas region, net fees rose 10%. Net fees rose 18% in Canada, 7% in the US and 25% in Chile. The company stated it continues to invest in the region, particularly in the US and Latin America, where headcount rose by 8% and 15% respectively. Operating profit in the Americas increased by £1.8 million (US$2.3 million).
Net fees by geography
| (£ millions) | FY 2019 | FY 2018 | % change | % change like-for-like | FY 2019 (US$ millions) |
| Australia and New Zealand | £198.5 | £199.4 | -0.5% | 4% | $251.9 |
| Germany | £299.8 | £276.0 | 8.6% | 9% | $380.4 |
| United Kingdom and Ireland | £263.8 | £258.2 | 2.2% | 2% | $334.8 |
| Rest of World | £367.6 | £339.2 | 8.4% | 8% | $466.5 |
Hays invested in consultant productivity tools and back-office scalability during the year, and restructured several country operations — mainly in Europe — which led to redundancy in a number of senior management positions and a £6.8 million charge, which is expected to deliver approximately £5 million of annualized pro-rata cost savings.
Hays also incurred a £8.3 million charge relating to a landmark legal judgment against Lloyds Banking Group in October 2018, which equalized guaranteed minimum pensions for men and women in UK defined pension plans.
Quote
“Looking ahead, despite an increasingly tough global economic backdrop, our market positions, combined with our highly experienced global management teams and strong financial position, means I am confident we will continue to appropriately balance our long-term potential with the more challenging markets we currently face,” Chief Executive Alistair Cox said.
Share price and market cap
Hays shares closed down 0.79% at £138.00; the company had a market cap of £2.03 billion, according to FT.com.