International recruitment firm Hays (LON: HAS) reported net fees for the six months ended 31 December 2017 with a 12% increase on a like-for-like basis compared to the previous year. The company also reported operating income increased by 14% on a like-for-like basis.

According to Hays, exchange rate movements increased net fees and operating profit by £5.9 million and £1.9 million, respectively. Operating profit increase was driven by strong growth in the group’s international markets, where 20 businesses delivered record net fees, and good cost control in the UK.

In the UK & Ireland, which comprised 24% of net fees, Hays stated that market conditions remained subdued but stable with the private sector up 5% and public down 9%. Net fees were up 1% to £127.5 million for the period while operating profit increased by 24% to £22.6 million. Chief Executive, Alistair Cox, told Reuters this morning that there was “less appetite” for non-British workers to take jobs following the Brexit vote and some European Union citizens had quit jobs in Britain, with the immediate impact being felt on construction sites. “We are starting to see skill shortages in a number of areas there because of a lot of the traditional supply, much of which has come from Europe has dried up,” he said.

In Germany, which comprised 26% of net fees, the group reported net fee growth of 17% to £134.8 million and an increase in operating profit of 2% to £41.1 million, despite the loss of three working days.

In Australia and New Zealand, which comprised of 19% of net fees, the group reported strong, broad based growth across all markets and most specialisms in Australia. Net fees were up 15% to reach £99.8 million, up 15% on the year. Operating profit increased by 13% to £34.1 million.

In the Rest of the World region, which comprised 31% of net fees, Hays reported strong, broad-based net fee growth and excellent profit leverage, especially in Europe and Asia. Furthermore, 19 of 28 markets reported record net fee performances. Net fees were up 15% to £163.7 million and operating profit climbed 39% to £18.7 million for the period.

Hays’ Permanent Placement business recorded 15% net fee growth to £222.2 million for the period while the Temporary Placement business saw an increase of 9% to £303.6 million.

Alistair Cox commented on the results, "We have delivered another strong first half with double-digit net fee and profit growth. Conditions were supportive in the vast majority of our markets, with 22 countries growing net fees by more than 10% and 20 countries delivering record performances. This is a clear sign of the strength of our diversified global portfolio, as we take advantage of our leading positions in key markets.”

“Our largest business, Germany, delivered another all-time record performance and we accelerated investment there, increasing consultant headcount by 30% and opening three new offices,” Cox said. “Australia delivered strong broad-based growth and while the UK market remained subdued, it was stable overall.”

"We continued to invest aggressively in our growth markets, increasing our International consultant headcount by 18%, while at the same time improving efficiency and thereby further increasing our sector-leading conversion rate. Underlying cash conversion remained good and we are pleased to increase our interim dividend by 10%,” Cox said.

"Looking ahead, the scale, balance and diversity of our businesses, combined with our strong balance sheet and highly experienced management teams, stand us in good stead. The outlook in the vast majority of our markets remains positive and we have made an encouraging start to our new five-year plan to broadly double our operating profits by 2022".

Despite the positive performance, as of last trade Hays PLC (HAS:LSE) traded at £191.90, down 6.21% on the day and 6.94% 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 £2.97 billion.