International recruitment firm Hays (LON: HAS) reported net fees for the six months ended 31 December 2018 with a 9% increase on a like-for-like basis compared to the previous year. The company also reported turnover and operating profit both increased by 9% on a like-for-like basis.

Hays said currency movements versus sterling continued to represent a reduction to its reported performance. Over the course of H1 2018, the total impact of exchange movements on operating profit was £2.1 million versus the prior year.

The company also reported that 58% of its net fees are generated from temporary markets and 42% from permanent placement markets. It added that “this balance gives our business model relative resilience. This well diversified business model continues to be a key driver of the group’s financial performance.”

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%.

Alistair Cox, Chief Executive, commented, “We have delivered another good first half, and despite increasingly tough comparatives are pleased to report 9% net fee and profit growth. Conditions were supportive in most of our markets, with 20 of our 33 countries delivering record net fees. This included our largest countries by profit, Germany and Australia, as well as exciting growth markets such as China, Canada and the USA. UK&I delivered another solid result, with 6% profit growth despite economic uncertainties.”

Net Fees by geography were broken down as follows.

In Australia, which represented 95% of the ANZ region, growth in net fees was up 10% to a record performance and growth was broad-based across most regions. However, New Zealand trading continued to be tough, and net fees were down by 25%. The group said it continued to work to improve its performance.

In Germany, the group’s largest market, net fees grew by 14% to £153.7 million, with operating profit also up by 14% to £46.7 million. However, growth has slipped from 17% in the prior year amid more negative economic signals coming out of the German market. The Temp and Contracting business, which represented 84% of Germany fees, delivered growth of 12%. The group said it continues to invest to capitalise on the long-term structural growth opportunities in Germany.

In the UK, Hays said the market remained relatively stable despite ongoing economic uncertainty. The Private sector business, which represented 73% of net fees, grew by 1%. In the Public sector, net fees grew by 9%. Net fees in Permanent recruitment were flat while the Temp business grew by 6%. In Ireland, net fee growth was up 10%.

The group’s Rest of World division includes 28 countries and delivered net fee growth of 11% to £181.1 million. Operating profit was up by 4% to £19.3 million.

EMEA ex-Germany delivered net fee growth of 7%, including 11 countries with record net fees in the half. This included France, the largest RoW country, which increased net fees by 5%, and Spain which delivered strong growth of 18%. Poland grew by 9%, although Belgium was tough and fell 6%.

Asia net fees were up 19%. Three countries in the region delivered record net fee performances, including China, the largest Asian country, up by 31% and Japan, which grew by 7%.

The Americas grew net fees by 18%. Net fees in the USA grew by 17%, and Canada by 27%. In Latin America, Brazil net fees fell by 2%, and Mexico was tougher and declined by 13%.

“Our group growth is testament to the strength of our diversified global portfolio and our leading positions in key structural growth markets,” Cox said. “We continued to invest through the half, increasing our International consultant headcount by 10% and further building on our technology and infrastructure. Underlying cash conversion remained good, and we are pleased to grow our interim dividend by 5%.”

“Looking ahead, although we remain mindful of continuing macroeconomic uncertainty, the outlook in the vast majority of our markets remains positive,” 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. Our financial strength and highly experienced management teams stand us in good stead for the future.”

Despite the good growth in net fees, investors were concerned about the signs of a slowdown in the German market. Consequently, as of last trade, Hays traded at £150.13, down 5.22% on the day and 11.54% above the 52 week low of £134.60 set on 27 December 2018. Based on its current share price the company has a market value of £2.31 billion.