International recruitment firm Hays (LON: HAS) reported turnover for the six months ended 31 December 2016 with a 7% increase on a like-for-like basis compared to the previous year. The company also reported net income increased by 3% on a like-for-like basis.

 “This has been a good first half, with further net fee and profit growth and strong cash generation,” Alistair Cox, Chief Executive, said. “Conditions remained supportive in many key markets, especially Germany, our most profitable business, where we delivered another all-time record performance, and Australia where activity accelerated significantly through the half.”

UK & Ireland

For UK & Ireland, which represents 27% of Group net fees, Hays stated that markets were tough but broadly stable across the half as a whole. The private sector (72% of net fees), saw a marked step-down in activity after the EU Referendum, but stabilised quickly and ended the half showing early signs of improvement, but the public sector remained challenging throughout the half. Both Temporary and Net Fees were down 10% on a like-for-like basis. By sector, declines in net fees (on a like-for-like basis) were seen in accounting and finance (-5%), construction and property (-11%) and education (-10%).   

Continental Europe and Rest of the World

For Continental Europe and Rest of the World, which represents 49% of group net fees, the group stated that there was Significant headcount investment, up 11% in real terms, to capitalise on supportive markets. There was a record first half operating profit of £39 million in Germany, the largest profit contributor to the group, and where net fees grew 10% (like-for-like). Meanwhile operating profit was up 19% (like-for-like) in the rest of the division as 13 countries delivered double digit net fee growth (like-for-like). Net fees increased by 18% in France and 11% in Benelux but declined by 3% in Switzerland (all on a like-for-like basis).

Asia Pacific

Asia Pacific, which represents 24% of net fees, saw 12% like-for-like growth in operating profit and 6% like-for-like growth in net fees. Australia & NZ net fees were up 9% (like-for-like) accelerating through the half, driving 16% (like-for-like) operating profit growth. However, the group said that performance in Asia was mixed, net fees were down 5% (like-for-like), as banking markets remained tough.

Net fees in Temp, which incorporates Hays’ Contracting business and represented 59% of group net fees, increased by 4% (like-for-like). Net fees in Perm increased by 1% (like-for-like) but the group said good, broad-based growth in international businesses was partially offset by declines in the UK.

“The benefits of our diversified global portfolio and market-leading business efficiency were again clear as we delivered 3% (like-for-like) net fee growth, generated £100 million operating profit and ended the half with £48 million net cash. We again invested quickly where market conditions were supportive, increasing our non-UK consultant headcount by 9%, while simultaneously defending profitability in more uncertain markets,” Cox said.

“As a result of this balanced approach, 18 countries delivered all-time record performances,” Cox said.  “Looking ahead, the scale, balance and diversity of the business we have built, combined with our world-class, highly experienced management teams, stands us in good stead. The vast majority of our markets remain positive, we have many opportunities to grow and we look to the future with confidence.”

In trading today, Hays PLC traded at £151.70, down 3.62% on the day and 8.06% below its 52-week high of £165.00, set on 12 January 2017. Based on its current share price the company has a market value of £2.27 billion.