Share Search
Visit the Share Search
You are here:
Hays sees FY profits above expectations
15th Jul 2021 07:12
(Sharecast News) - Recruitment firm Hays said it expected full-year profits to be ahead of forecasts, driven by improving fees and cost management and a better-than-expected fourth quarter.
The company on Thursday guided for operating profits of £95m after fourth quarter fees rose 39% on a like-for-like basis, with sequential quarterly growth and a strong performance in June.
Hays reported a sharp rebound from the Covid-19 crisis in all regions, particularly in permanent placements with fees up 67%.
"We enter full-year 2022 with positive trading momentum and are significantly investing in headcount to capitalise on strong end markets and rising business confidence," the company said in a trading update.
Chief executive Alistair Cox the company continued to see good momentum throughout the quarter with group fees and profits ahead of expectations.
"All our key markets rebounded significantly as business confidence rose and we saw strong recovery in our largest markets of Germany, Australia and the UK. This was also mirrored in Rest of World, including nine record fee performances including the USA and China. There are clear signs of skill shortages and wage inflation in certain industries, particularly Technology and Life Sciences," he said.
"We now expect full-year 2021 operating profit of £95m, ahead of market expectations, despite making significant headcount investment including £15m as part of our 'Strategic Growth Investment' programme, which is performing well and likely to see a further £20m of investment in full-year 2022."
Hays warned that the strengthening of sterling versus its main trading currencies of the euro and Australian dollar would likely act as a headwind to 2022 operating profit.
"If we retranslate our 2021 operating profit guidance of £95m at today's exchange rates, we would see a £4m decrease in 2021 group operating profit, and clearly foreign exchange ovements will have a larger negative impact as operating profit increases in 2022," it added.
The company on Thursday guided for operating profits of £95m after fourth quarter fees rose 39% on a like-for-like basis, with sequential quarterly growth and a strong performance in June.
Hays reported a sharp rebound from the Covid-19 crisis in all regions, particularly in permanent placements with fees up 67%.
"We enter full-year 2022 with positive trading momentum and are significantly investing in headcount to capitalise on strong end markets and rising business confidence," the company said in a trading update.
Chief executive Alistair Cox the company continued to see good momentum throughout the quarter with group fees and profits ahead of expectations.
"All our key markets rebounded significantly as business confidence rose and we saw strong recovery in our largest markets of Germany, Australia and the UK. This was also mirrored in Rest of World, including nine record fee performances including the USA and China. There are clear signs of skill shortages and wage inflation in certain industries, particularly Technology and Life Sciences," he said.
"We now expect full-year 2021 operating profit of £95m, ahead of market expectations, despite making significant headcount investment including £15m as part of our 'Strategic Growth Investment' programme, which is performing well and likely to see a further £20m of investment in full-year 2022."
Hays warned that the strengthening of sterling versus its main trading currencies of the euro and Australian dollar would likely act as a headwind to 2022 operating profit.
"If we retranslate our 2021 operating profit guidance of £95m at today's exchange rates, we would see a £4m decrease in 2021 group operating profit, and clearly foreign exchange ovements will have a larger negative impact as operating profit increases in 2022," it added.