Hays boosts dividend on strong corporate confidence

25th Feb 2015 08:15

Hays, the British staffing specialist, raised its dividend after it posted a 10% rise in underlying net fees on strong corporate confidence in all of its major markets.The recruitment specialist, which places workers in areas such as finance, construction and information technology, raised its dividend by 5% to 87p after its net fees rose to £383.9m in the first half of its financial year ending December 31.Despite foreign exchange headwinds of £4.1m, the company was able to boost basic earnings per share by 26% to 3.64p, pre-tax profit by 24% to £77.3m and headline operating profit by 22% to £81.5m.Chief executive Alistair Cox said the 'excellent first half performance' was driven by acceleration in the permanent recruitment market, as candidate confidence continued to improve in many countries.The staffer said UK & Ireland delivered strong, broad-based net fee growth of 13%, Continental Europe & Rest of World of 9% while Asia Pacific and Australia returned net fees up 8% and 5% respectively.Hays however warned that although growth in the UK & Ireland remains strong, comparatives are challenging and the group expects a potential negative impact on activity levels due to the upcoming general elections in May."Following the seasonal uplift in consultant headcount that we saw in January, headcount will remain broadly flat until we have a clear view of any impact the general election may have on activity levels," said Cox.That said, the group expects a continuation of good overall net fee growth in its key markets. "We are confident in our outlook and we will continue to invest in a targeted way to capitalise on the clear growth opportunities that exist," added Cox.