International recruitment firm Hays (HAS: LSE) today reported net fee income growth of 10% on a like-for-like (LFL) basis for the first quarter ending 30 September 2017, compared with the same period last year. 

Hays’ Temp business, which accounted for 58% of group net fees in the quarter, grew by 8% (LFL). Net fee growth in the Perm business increased by 13% (LFL).

Within Asia Pacific, which represented 25% of group net fees, Australia & New Zealand net fees were up 13% (LFL). Asia, which accounted for 22% of the Asia Pacific division, recorded net fees up 18% (LFL).

In Continental Europe & Rest of World, the group’s largest division which represented 50% of group net fees, Germany led with a record performance where net fees grew 15% (LFL). The rest of Continental Europe improved 14% (LFL).

In the United Kingdom & Ireland, which represented 25% of the Group, net fees increased 1% (LFL). The group’s Perm business, was up 2% (LFL) in the quarter. The Temp business was flat (LFL) as Hays stated that it continued to be negatively affected by tough market conditions in the public sector as well as by the impact of the IR35 regulations. UK public sector net fees fell 9%.

Hays did not relate it’s weak UK performance to Brexit unlike competitor PageGroup who announced their results yesterday. In fact, Finance Director Paul Venables told Reuters, “The banks have got their contingency plans in place, but they’re waiting to see if they can get any steer at all on the eventual deal that will be done. The pleasing part is that leavers (in London) are being replaced. This is encouraging for the future of the financial services industry in London. It will still be a very large business when we get through the Brexit part”.

“We have made a strong start to the new financial year with all divisions growing,” Alistair Cox, Chief Executive, said: “We continued to see modest improvements in our UK private sector business, which returned to growth, although this was largely offset by a tough public sector market.”

“Looking ahead, conditions remain good in the vast majority of our International markets. In the UK, market conditions remain stable overall. Our diverse and balanced global business, together with our highly experienced management teams and our strong balance sheet means we are well positioned to capitalise on the many clear growth opportunities we currently see across the vast majority of our markets, while maximising earnings and cash along the way.”

As of last trade Hays traded at £1.85, down 1.28% on the day and 0.0% above its 52-week low of £1.85 set on 15 September 2017. Based on its current share price the company has a market value of £2.75 billion.