Hays (HAS: LSE), today reported flat net fees for the fourth quarter ended 30 June 2019 both on a headline and like-for-like basis, compared with the same period last year.

The company reported a decline on a like-for-like basis in its Australia and New Zealand markets as well as in the UK & Ireland. Hays said political uncertainty in Australia and the UK impacted results in these markets.

On an underlying basis, net fees were up 1%.

The group said Easter fell entirely in Q4 this year, whereas in FY 2018 it was split between Q3 and Q4. Hays estimates this had a 1% benefit to group net fees in Q3 2019, with a corresponding 1% negative impact in Q4 2019.

The group added that full-year operating profit is expected to be in line with current consensus market expectations, which Hays states is £248.0 million. 

Alistair Cox, Chief Executive, commented, “We delivered a solid end to our financial year with underlying fees up 1% and strong cash generation, despite tough comparatives, more mixed macroeconomic conditions and some signs of reduced business confidence.”

In Australia and New Zealand, net fees declined by 3% in the quarter against tough year-on-year growth comparatives and more mixed market conditions. Additionally, the run-up to the Australian General Election in May also led to the usual slowdown in market activity.

The group’s largest market of Germany delivered net fee growth of 2% versus tough comparatives and broad signs of client cost control and slower decision-making. This was increasingly evident in the manufacturing and automotive sectors.

Net fees in the United Kingdom & Ireland were more subdued and fell 2%. Growth in Hays’ public sector business, which represented 26% of UK&I net fees, grew by 7%, however,  conditions in the private sector were tougher and net fees fell by 6%. Net fees in both perm and temp business fell by 2%.

The Rest of World (RoW) division, encompassing 28 markets, delivered net fee growth of 2%, against a ‘very tough’ growth comparative. Growth in permanent which represented 69% of RoW net fees, was 5% while temp fell by 5%. Eight countries delivered growth of more than 10%, including six all-time quarterly records.

EMEA excluding Germany net fees were flat, versus tough year-on-year comparatives. Net fees in France and Belgium fell by 2% and 4% respectively, although Spain had a record net fee quarter, growing by 6%. Growth in Italy stood at 23%, however Poland and the Netherlands were tougher, with net fees falling by 9% and 15%, respectively.

Asia net fees were up 10%. Greater China, the group’s largest Asian market, delivered a record quarter and grew by 9%, including Hong Kong up 18%. Japan grew by 8%, also producing record net fees, while growth in Singapore stood at 48%.

Net fees in the Americas fell by 1%. The USA declined by 4% and Canada grew by 2%. Mexico reported growth of 17%, and Brazil was up 6%.

During the period, consultant headcount was down 1% in the quarter but increased 6% year-on-year.

Net fees in both the Temp and Perm business were flat year-on-year. Temp represented 58% of group net fees, with Perm 42%.

“Looking ahead, we are mindful of economic and political uncertainties and will continue to focus on driving consultant productivity, while making selective investments in our key markets to reinforce our market leadership,” Cox said. “Our strong financial position means we have an excellent platform to balance short-term performance with our long-term strategic goals, allowing us to invest to capitalise on numerous opportunities in the changing world of work."

As of last trade Hays traded at £146.90, down 3.04% on the day and 9.14% above its 52-week low of £134.60, set on 27 December 2018. Based on its current share price the company has a market value of £2.21 billion.