Hays (HAS: LSE), the sixth largest staffing firm in the world, today reported net fee income growth of 15% on a like-for-like basis for the fourth quarter ended 30 June 2018, compared with the same period last year and the 20^th consecutive quarter of year-on-year growth. 

According to Hays, the relative strength of Sterling, particularly versus the Australian dollar, reduced the group’s reported net fee growth. Modest Euro strength against Sterling partially offset this. Hays estimated that the Easter holiday had a 1% positive impact on net fees at Q4 2018.

Alistair Cox, Chief Executive, Hays, commented, "We have ended our financial year with another record quarterly net fee performance, excellent cash generation, and expect full-year operating profit to be marginally ahead of current market expectations (£240.9 million). Net fees in our International businesses increased 18% and 24 of our 33 countries delivered double-digit growth, including 16 all-time records. Australia and Germany continued to perform strongly, and despite continuing economic uncertainties our UK business has seen modest improvement.”

In Australia & New Zealand the group reports its best quarter since 2008. Growth in the group’s Temp business, which represents 67% of ANZ net fees, was 13%, while growth in the group’s Perm business was 16%.  Australia was up 16%. Market conditions remained favourable, and growth was broad-based across all major specialisms. Net fees in New Zealand fell 13%.

The group’s largest market of Germany delivered a record quarter. The group’s Temp & Contractor business, which represents 83% of Germany net fees, grew by 12%.

Growth in the UK & Ireland was led by the group’s public sector business which was up 12%. “This was in part due to easier comparatives following the negative impact of IR35 changes in the public sector, implemented in April 2017,” the group stated. Conditions remained broadly stable in private sector markets, which represented 76% of UK & Ireland net fees and grew by 3%. Hays’ Temp business delivered strong growth, up 10%. Growth in Public sector Temp was up 13%, with the Private sector up 8%. The group’s Perm business remained stable, with net fees flat in the quarter.

The Rest of World division, encompassing 28 markets, reported that 21 of those markets delivered growth of more than 10%, including 15 all-time quarterly records. Europe-excluding Germany, produced saw broad-based growth of 18%. France, Hays’ largest RoW market, grew 15% and has delivered its fourth consecutive year of double-digit net fee growth. Growth in the third largest RoW business, Belgium, was at 23%. Russia was up 48%. After flat Q3 FY18 growth, Spain rebounded to deliver a strong 19%.

Asia reported net fees were up 25%. Mainland China, the group’s second-largest Asian market, was up 37%, while Hong Kong recorded the highest growth of 57%, its second consecutive quarter above 40%. Japan grew 12%, although Singapore decreased 16%.

Net fee growth in the Americas accelerated to 35%, led by the group’s largest market of the US which delivered record quarterly net fees, up 40%, and Canada, the next largest business, was up 41%. In Brazil and Colombia, net fee growth was 22% for each. Market conditions in Mexico continued to be uncertain, although the group’s performance improved slightly and net fees grew 10%.

Net Fee growth by segment for the fourth quarter was reported as follows.

“Looking ahead, conditions remain positive in virtually all of our markets,” Cox said. “We continue to invest significantly in key growth markets where we see structural and market share opportunities, notably Germany, France and the USA. Our focus continues to be on driving profitable, cash-generative growth, leveraging the largest and most balanced global platform in our industry. That allows us to look to the future with confidence."

As of last trade Hays traded at £204.60, up 7.01% on the day and 0.78% below its 52-week high of £206.20, set on 29 January 2018. Based on its current share price the company has a market value of £2.75 billion.