Hays plc, the world’s sixth-largest staffing firm, reported net fees (gross profit) fell 2% on a “like-for-like basis” in its fiscal fourth quarter ended June 30. “Like-for-like” measures organic growth of continuing operations in constant currency. The decline was in permanent placement, where gross profit fell 9% year over year on a like-for-like basis. Temporary staffing gross profit rose 4%.

“Growth was again driven by temp and contracting, our largest business and key strategic focus, where volumes were stable overall; however perm hiring processes continued to lengthen,” Chief Executive Alistair Cox said.

Hay’s key markets remain characterized by skill shortages and wage inflation despite macroeconomic uncertainties, Cox said.

Gross profit in the US and Canada were both down 25% on a like-for-like basis, and Hays reported conditions in both markets were tough. Both countries are included in Hays’ “rest of world” segment, where gross profit was down 4%.

In Germany, the company’s largest single market, gross profit in temporary staffing rose by 11% on a like-for-like basis and perm gross profit rose by 10%.

In the UK and Ireland, temporary staffing gross profit was flat on a like-for-like basis and perm gross profit fell by 15%.

Temp gross profit fell by 9% on a like-for-like basis in Australia and New Zealand, while perm gross profit fell by 22%.

Share price and market cap

Shares in Hays closed down 2.11% to £102.30 (US$132.63) today in London; they were 5.57% above their 52-week low, according to FT.com. The company had a market cap of £1.66 billion (US$2.15 billion).