Hays lifts quarterly net fees and full-year profit target

10th Apr 2014 07:09

- Increases quarterly LFL net fees - Improved conditions across many of its key markets- Upwardly revises full-year profit targetRecruitment firm Hays reported a solid increase in quarterly net fee growth, helped by improved conditions across many of its key markets, leading to increased expectations for full-year profits.The group expects full-year operating profit to be towards the top of the current range of market estimates of around £141m, based on a good start to the second half overall and strong performances in key markets such as the UK and Germany.For the quarter ended March 31st 2014, net fees on a like-for-like (LFL) basis rose 8% basis and 1% on an actual basis. UK & Ireland saw strong growth of 14%, driven by robust Permanent growth of 25%.Continental Europe & Rest of World posted growth of 11% with growth accelerating to 12% in Germany. Countries including Belgium, Spain and Switzerland delivered net fee growth of over 10%.However, net fees in Asia Pacific fell by 4%, while Australia net fees decreased by 12%. Asia saw strong growth of 25%.Temporary net fees grew 2% on an actual basis and 8% on a LFL basis while Permanent was unchanged on an actual basis, but LFL net fees climbed 9%. Chief Executive Alistair Cox said: "We continued to capitalise on improving conditions in many of our key markets, leading to an increase in our expectations for full-year profits. "We saw continued recovery in many European, Asian and American markets and seven of our businesses delivered record monthly net fees, including key businesses such as Germany, Canada and Japan. "Looking ahead we are confident that the improvements we have seen in our key markets will continue, presenting further growth opportunities for the group. We also see clear signs that conditions in Australia have stabilised."CJ