Thursday preview: Hays reports full year results

31st Aug 2016 12:24

(ShareCast News) - Hays reports its full year results on Thursday with analysts expecting the recruitment giant to report an increase in earnings following a strong fourth quarter trading update.At the fourth quarter trading update on 14 July, the company reported a like-for-like 8% increase in net fees for the three months ended 30 June, as growth in Europe and Asia offset a decline in UK and Ireland.Temporary job placements rose a like-for-like 10% while permanent increased 6%.At the time the group said it expected full year operating profit of £180m, ahead of current consensus market expectations.Chief executive Alistair Cox said conditions in most international markets "remain supportive" but there is significantly increased uncertainty in the UK following the EU referendum in June.Hays indicated that if foreign exchange rates remain at a similar level at 12 July it would receive a £22m boost to earnings before interest, tax and amortisation (EBITA) for fiscal year 2017. Consensus forecast for 2017 EBITA is £177m."Since then, we note that sterling has weakened further, and continues to underpin forecasts," said Numis analyst Steve Woolf."The impact of the Brexit vote on the UK remains the key risk factor, and we note that more recent trading and results reporting across the staffing sector have begun to highlight a reduction in hiring activity."Numis expects full year EBITA of £180m, in line with consensus, compared to last year's £164m. The broker recommended an 'add' rating and target price of 110p."The high cyclical sensitivity has led Staffing shares have underperformed the market over the past three months, but Hays has been a relative outperformer when compared to its peers (Page Group, SThree and Robert Walters) but are trading above our target price," Woolf added.On the calendar for macroeconomic data, a batch of manufacturing reports will be released from China, the UK, Europe and the US. Given concerns about the health of the sector, particularly in China, the purchasing managers' index data will be closely monitored. Thursday 01 September INTERIMS International Public Partnerships Ltd., Stilo International INTERIM DIVIDEND PAYMENT DATE Melrose Industries, Tyman INTERIM EX-DIVIDEND DATE Acacia Mining, Acencia Debt Strategies Ltd., Aggreko, Amino Technologies, Arbuthnot Banking Group, Avesco Group, Carillion, Foxtons Group , G4S, Hikma Pharmaceuticals, Hochschild Mining, Hostelworld Group , Impellam Group, InterContinental Hotels Group, International Personal Finance, Jardine Lloyd Thompson Group, Keller Group, Kingspan Group, Mincon Group , National Express Group, Northern Electricity Prf, Novae Group, Polymetal International, Rights & Issues Inv Trust Income Shares, Robert Walters, St James's Place, Stock Spirits Group , Tullett Prebon, Ultra Electronics Holdings, Xaar QUARTERLY PAYMENT DATE JPMorgan Claverhouse Inv Trust QUARTERLY EX-DIVIDEND DATE Alpha Real Trust Ltd., Bank of America Corp., Premier Energy & Water Trust INTERNATIONAL ECONOMIC ANNOUNCEMENTS Construction Spending (US) (15:00) Continuing Claims (US) (13:30) Initial Jobless Claims (US) (13:30) ISM Manufacturing (US) (15:00) ISM Prices Paid (US) (15:00) Q2 International Public Partnerships Ltd. FINALS Alumasc Group, CPL Resources, Hays AGMS Falkland Islands Holdings TRADING ANNOUNCEMENTS Safestore Holdings FINAL EX-DIVIDEND DATE Auto Trader Group , BHP Billiton, First Property Group, Gateley (Holdings) , Henderson Smaller Companies Inv Trust, ICBC Standard Bank, Micro Focus International, NCC Group, Pinewood Group , Solid State, Stagecoach Group, WYG