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Hays warns on profits as Brexit, bushfires, weak Germany hit fees
16th Jan 2020 08:02
(Sharecast News) - International recruitment firm Hays on Thursday warned of a lower first-half operating profit as its main markets were hit by economic uncertainty.
Hays cited Brexit-related worries in the UK, the Australian bushfires, a slowdown in Germany and French strikes for a fall in fees as companies delay hiring staff. The US/China trade war and Hong Kong protests have also impacted sentiment.
The group said it expected first-half operating profit this year of around £100m, down from £124m a year earlier.
Hays reported a 4% drop in like-for-like net fees in the second-quarter.
"Germany weakened further, with economic uncertainties driving increased client cost controls. The Americas performed well, with the USA a standout, while Asia was flat. Conditions in the UK remained uncertain, particularly before the election, although the result may provide impetus over time," Hays said in a trading statement.
"Growth slowed markedly in December, driven by specific events in key markets: general strikes in France, tragic Australian bushfires and the UK election," said chief executive Alistair Cox said.
"Each event impacted markets already facing challenging economic conditions and low business confidence."
Hays cited Brexit-related worries in the UK, the Australian bushfires, a slowdown in Germany and French strikes for a fall in fees as companies delay hiring staff. The US/China trade war and Hong Kong protests have also impacted sentiment.
The group said it expected first-half operating profit this year of around £100m, down from £124m a year earlier.
Hays reported a 4% drop in like-for-like net fees in the second-quarter.
"Germany weakened further, with economic uncertainties driving increased client cost controls. The Americas performed well, with the USA a standout, while Asia was flat. Conditions in the UK remained uncertain, particularly before the election, although the result may provide impetus over time," Hays said in a trading statement.
"Growth slowed markedly in December, driven by specific events in key markets: general strikes in France, tragic Australian bushfires and the UK election," said chief executive Alistair Cox said.
"Each event impacted markets already facing challenging economic conditions and low business confidence."