Hays on track to meet medium-term profit targets after full-year figures

27th Aug 2015 08:25

(ShareCast News) - Staffing group Hays remained on course to meet its medium-term targets for profits and dividend cover despite the stiff currency headwinds encountered during the past financial year.Broad strength in sterling capped the rate of growth in the company´s turnover at 4% to reach 3.84bn pounds in the twelve months to 30 June, whereas in like-for-like terms it expanded 9%.That mimicked the 9% increase in its consultant headcount, which had reached 5,821 by period end.The company´s ability to translate increases in net fees into operating profits, or the so-called 'conversion rate', moved back above 20% for the first time since 2009 after rising by 210 basis points to 21.5%.That drove an 18% gain in profits before tax to reach 156.1m pounds.Earnings per share improved 21% to 7.44p per share, thanks in part to a lower effective tax rate.Broad strength across most geographical regionsAt current exchange rates the net fees charged by the company increased 5% to hit 764.2m pounds.A return to growth in the Australian market - although the mining focused regions remained "tough" - drove an 8% rise in net fees from the Asia Pacific region.In the UK&Ireland net fees clocked in with growth of 11%, although 21 countries delivered net fee growth of 10% or more.Company still focused on building dividend coverThe dividend payout was hiked 5% to 2.76p per share, keeping in line with the company´s strategy of building its full-year cover towards three times earnings.The group also said it was on track to meet its goal of increasing its operating profits to reach 250m pounds by June 2018."We see many clear opportunities to grow further and are focused on capturing these while simultaneously driving profits and cash generation along the way," said Alistair Cox, the company´s chief executive.Net debt was cut from 62.7m pounds to 30.7m pounds, despite the 36m pound acquisition of Veredus in the US.Management expects to move into a net cash position over the next fiscal year.As of 14:56 shares in Hays were rising by 2.08% to reach 157.4p.