Hays ahead of schedule for operating profit target

28th Aug 2014 10:05

Recruiter Hays reported a 20% rise in full-year operating profits, which put it ahead of its schedule to double the figure by 2018. Strong, broad-based net fee growth was reported in both the UK and Ireland, which drove regional net fees 11% higher and helped lift group operating profit 12% to £140.3m. Pre-tax profit also climbed 12% to £132.3m on group net fees up 1% to £724.9m. The group struggled somewhat in Asia Pacific, where net fees dropped 6%, although continental Europe and rest of world delivered an 8% rise. Chief executive Alistair Cox said: "This is a strong financial performance, and we are ahead of schedule in terms of our aspirations to broadly double the group's operating profits by 2018. We saw improved conditions in several key markets, notably in the UK, Asia, North America and many European countries, and took advantage by investing to drive growth. "I am confident that we enter the new year in a position of strength, with unrivalled breadth, scale and balance around the world and the best people and technology tools in our industry. Having outperformed during the downturn, we now have the ideal platform to capitalise on the many growth opportunities we see around the world. "Our focus is on continuing to grow the business by leveraging that platform, driving further profit growth and building an ever-stronger leadership position in our industry."Hays declared a 5% increase in the dividend payment, from 2.50p to 2.63p. In the view of Oriel Securities, the statement offered "no surprises" and it maintained its 'add' rating. The broker did, however, note that "much depends on the path of foreign exchange rates over coming months". The share price had risen 0.15% to 129.60p by 09:03.NR