International growth drives Hays

7th Oct 2010 07:47

The UK and Ireland are letting the side down at international recruitment firm Hays, which otherwise saw strong growth in fees across all its geographic regions in the third quarter.Net fees rose 18% on a like for like (LFL) basis in the July to September quarter from the corresponding period of last year, with fees from temporary placements up 9% (LFL) while those from permanent placements rose 30% (LFL).Asia Pacific saw a 39% LFL growth in fees while Continental Europe and the Rest of the World registered a 27% increase in LFL fee growth. Those performances made the 1% increase in LFL fees in the UK & Ireland look anaemic.However, the company said it saw 23% growth in private sector markets, offsetting tough conditions in parts of the public sector.The outlook remains good across 90% of our markets and we are continuing to invest in headcount across Asia Pacific, Continental Europe and South America."Our international diversification is delivering clear benefits with 60% of the group's net fees now generated outside the UK. Our global reach, combined with the investments we have made in the business throughout the downturn, place us in a strong position to capitalise on the significant growth opportunities in the professional recruitment markets across the world," claimed Alistair Cox, chief executive of Hays.Net debt increased to around £100m from £77.2m at the end of June due to the phasing of cash flows. As previously guided the group expects this to increase further in the next quarter following the payment of the final dividend in November.