Overseas markets drive Hays's growth

7th Apr 2011 07:02

In the first quarter of 2011 international recruitment firm Hays saw like for like growth in net fees in every region except the UK & Ireland, where spending cuts in the public sector are starting to bite. Continental Europe & Rest of World was the fastest growing region, showing year on year like for like (LFL) growth in fees of 35%, as the region continued to bounce back from recession.Asia Pacific saw LFL growth of 23% but the UK & Ireland saw fees dip by 2% from the first quarter of 2010.In the UK & Ireland there was strong net fee growth of 18% in the private sector but this was offset by continued tough conditions in the public sector, where fees were down 37%.Permanent appointments grew faster than temporary ones. Fees from Permanents rose 27% on a LFL basis, while Temps saw LFL growth of 8%.For the group as a whole, fees were up 16% on a year earlier on a LFL basis."Overall, 21 countries grew net fees by more than 20%," revealed Alistair Cox, chief executive of Hays.The combined impact of the natural disasters in Queensland, Christchurch and Japan is estimated to have reduced group net fee growth by 1% and slowed growth in Asia Pacific by three percentage points. "The outlook remains positive in nearly all of our markets outside the UK public sector and we continue to invest in consultant headcount, particularly in the International business which grew headcount by 7% in the quarter," Cox added.The group now generates nearly two thirds of its fees from the International business so considers itself relatively well insulated against the cold winds blowing through the UK public sector.Net debt increased to around £130m at the end of the period from £125.7m at the end of 2010. The group expects debt to remain at a broadly similar level through the current quarter.---jh