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View All NewsHays revenue up 9% in first half of fiscal year
Global staffing provider Hays plc reported overall market conditions remained strong in the six months ended Dec. 31 — the first half of its fiscal year — in most of its international markets, while the UK market remained stable but subdued. The German, Australian, North American and Asian markets delivered double-digit net fee growth in the half.
UK-based Hays, one of the world’s largest staffing firms, reported turnover (revenue) rose 9% in the six months on a like-for-like basis, which measures growth on an organic basis at constant currency.
Permanent net fees increased by 10%, driven by a 5% increase in volume and a 5% increase in average permanent fee. Net fees in temp, which incorporates the group’s contracting business, increased by 9%.
| (£ millions) | H1 2019 | H1 2018 | % change | % change like-for-like | H1 2019 (US$ millions) |
| Turnover (revenue) | £3,035.4 | £2,828.9 | 7% | 9% | $3,852.0 |
| Net fees (gross profit) | £568.0 | £525.8 | 8% | 9% | $720.8 |
| Operating profit | £124.1 | £116.5 | 7% | 9% | $157.5 |
| Profit after tax | £85.2 | £78.0 | 9% | - | $108.1 |
Net fees also rose 9% on a like-for-like basis with the fastest growth in the company’s Germany segment. Net fees rose 11% like-for-like in the company’s “Rest of World” segment, which includes Europe (excluding Germany, the UK and Ireland), Asia and the Americas. The company stated that net fee growth in the division was broad-based.
In the Americas, net fees rose 18%, with a £1.0 million (US$1.3 million) increase in operating profits.
Net fees rose 17% in the US and jumped 27% in Canada, including temp up 56%. In Latin America, net fees fell by 2% in Brazil and by 13% in Mexico.
Net fees by geography
| (£ millions) | H1 2019 | H1 2018 | % change | % change like-for-like | H1 2019 (US$ millions) |
| Australia and New Zealand | £101.5 | £99.8 | 2% | 7% | $128.8 |
| Germany | £153.7 | £134.8 | 14% | 14% | $195.0 |
| United Kingdom and Ireland | £131.7 | £127.5 | 3% | 3% | $167.1 |
| Rest of World | £181.1 | £163.7 | 11% | 11% | $229.8 |
Quote
“Looking ahead, although we remain mindful of continuing macroeconomic uncertainty, the outlook in the vast majority of our markets remains positive,” Chief Executive Alistair Cox said. “Our second half focus will be on driving consultant productivity, while selectively investing in our key markets to build on our existing scale, balance and diversity.”
Share price and market cap
Hays shares closed up 12.78% at £151.80; the company had a market cap of £2.31 billion, according to FT.com.