Hays (HAS: LSE), the sixth largest staffing firm in the world, today reported net fees of £1.07 billion for the full year ended 30 June 2018, an increase of 12% on a like-for-like basis when compared to the same period last year.

It is the first time that Hays has surpassed £1 billion in net fees. The group also reported that 22 countries delivered all-time record performances.

The group said that during the year, overall market conditions remained strong, with many clear opportunities to grow.

Over the course of the year to 30 June 2018, exchange rate movements reduced net fees by £0.1 million, and increased operating profit by £1.0 million. Meanwhile, the group’s operating profit was driven by strong growth in its International businesses.

"2018 was a landmark year for the group,” Alistair Cox, Chief Executive, said. “We successfully completed our ambitious 2013 plan, passed £1 billion in net fees for the first time and 22 countries delivered all-time records.”

“Our Rest of World (RoW) business was the standout performer with excellent profit growth of 51%, despite significant investment. We further strengthened our leading positions in key markets like Australia and Germany, and our UK business delivered a good profit performance, despite macro uncertainty. Overall cash generation was excellent, enabling the Board to propose increasing the full year core dividend by 18% and propose the group's second special dividend, of £72.9 million.”

Yesterday, the group announced it had appointed Andrew Martin as chairman on a permanent basis with immediate effect. Hays appointed Martin as interim non-executive chairman on 23 July following the death of Alan Thomson.

Net Fees broken down by temporary and permanent were as follows.

Net Fees by geography were as follows.

In Australia, net fee growth accelerated to 16%. This was driven by private sector activity, which represented 65% of group net fees, up 18%. Public sector net fees increased by 13%. Growth in Australia was broad-based across all regions and specialisms.

New Zealand (6% of ANZ net fees) was down 9% after what Hays described as a “tough second half of the year.”

In Germany, the group’s largest market, its Temp and Contracting business, which represented 85% of German fees, delivered growth of 14%.  IT, Hays’ largest specialism, which accounted for 41% of German net fees, grew by 13%. 

Hays said that the UK market remained uncertain but stable overall. Temp, which represented 56% of division net fees, grew by 3%, with the Perm business was up 1%. Public sector markets remained tough and net fees declined 2%, although the rate of decline improved in H2 FY18, in part due to easier comparatives following the negative impact of IR35 changes in the public sector, implemented in April 2017. The larger Private sector business, which represented 75% of net fees, grew by 3%. All regions traded broadly in line with the overall UK business, with the exception of the South West & Wales, up 8%, Northern Ireland up 7%, East down 7% and the Midlands, down 6%.

Ireland delivered net fee growth of 16%.

In the group’s RoW division, which comprises of 28 countries, growth was broad-based, with 21 markets delivering all-time record net fees. Perm net fees, which represented 68% of RoW, were up by 21%, while Temp net fees rose 10%.

Europe excluding Germany, delivered broad-based net fee growth of 15%.

The Americas grew net fees by 21%, including four of the group’s six countries with all-time records.

Net fees in Asia were up 23%. Hong Kong delivered the highest growth with net fees up 57%. Japan and China grew by 13% and 29% respectively.

The group said it continues to see strong overall net fee growth across its International businesses.

“Looking ahead, conditions remain positive in virtually all of our markets,” Cox said. “We are investing significantly in key growth markets where we see structural and market share opportunities, notably Germany, France and the USA. We continue to build on our scale and diversity and are focused on driving profitable, cash-generative growth.”

As of last trade Hays PLC (HAS:LSE) traded at £194.00, down 4.34% on the day and 8.92% below its 52-week high of £213.00, set on 16 July 2018. Based on its current share price the company has a market value of £2.93 billion.