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Hays expects H1 to be 'modestly profitable'
15th Oct 2020 08:05
(Sharecast News) - Recruitment firm Hays said on Thursday that first-half trading was expected to be "modestly profitable" despite a significant impact to group fees as a result of the Covid-19 pandemic.
Hays said group fees had dropped 29% across the board, with temp markets dropping 25% and permanent fees falling 25% year-on-year.
However, the FTSE 250-listed firm did note that permanent fees had "improved sequentially", particularly in markets previously hardest-hit by lockdowns.
Fees fell 26% in Australia and New Zealand, while German fees declined 31%, UK and Ireland fees contracted 34% and fees from the rest of the world dropped 27%.
Hays also added that cash collection remained "strong", with a net cash balance of roughly £350.0m, a marked improvement on the £90.0m reported a year earlier.
Chief executive Alistair Cox said: "Although many uncertainties remain, our business is resilient and our highly experienced management teams are focused on best positioning us for recovery.
"With our strong balance sheet and leading positions in key sectors, we are confident we can take further market share."
As of 0940 BST, Hays shares were down 2.07% at 113.40p.
Hays said group fees had dropped 29% across the board, with temp markets dropping 25% and permanent fees falling 25% year-on-year.
However, the FTSE 250-listed firm did note that permanent fees had "improved sequentially", particularly in markets previously hardest-hit by lockdowns.
Fees fell 26% in Australia and New Zealand, while German fees declined 31%, UK and Ireland fees contracted 34% and fees from the rest of the world dropped 27%.
Hays also added that cash collection remained "strong", with a net cash balance of roughly £350.0m, a marked improvement on the £90.0m reported a year earlier.
Chief executive Alistair Cox said: "Although many uncertainties remain, our business is resilient and our highly experienced management teams are focused on best positioning us for recovery.
"With our strong balance sheet and leading positions in key sectors, we are confident we can take further market share."
As of 0940 BST, Hays shares were down 2.07% at 113.40p.