Improved UK confidence and perm growth boosts Hays
9 January 2014
“A broad based improvement in all activity levels in all regions and specialisms” in Hays’ UK business was a key factor behind “a solid performance” by the international recruiter, according to the company’s group finance director.
Thu, 9 January 2014 | By Colin Cottell“A broad based improvement in all activity levels in all regions and specialisms” in Hays’ UK business was a key factor behind “a solid performance” by the international recruiter, according to the company’s group finance director.
In a conference call to analysts and investors, after Hays announced a 3% increase in like-for-like net fee income (NFI) in the quarter ended 31 December 2013 compared to the same quarter in 2012, Paul Venables said that there was evidence of improved confidence among UK clients and candidates.
“Hiring decisions are being made quickly, and if somebody leaves they move to replace them very quickly: that’s all positive,” said Venables.
On the back of these improved market conditions, Venables said Hays’ NFI from permanent placements rose by 17%, their highest growth rate for six years. NFI from Hays’ temporary business also grew, albeit it less strongly at 5%, with overall NFI up 10%.
The East of the UK, London, the Midlands, Northern Ireland, the North-West and Scotland, each of which grew by more than 10%, while Ireland delivered net fee growth of 30%.
Venables said that construction and property had been particularly strong as the sector recovered after a number of weak years.
Venables added that in order to support the expected continuing growth in the UK business, Hays had targeted a 5-10% increase in UK headcount in the next six months.
Hays’ continental Europe & rest of the world division region recorded a 5% increase in NFI, with Germany producing a strong performance, with accountancy & finance up 29% and construction & property, sales & marketing and legal all growing NFI by over 10%.
Hays’ Asia-Pacific division produced mixed results. While in Australia and New Zealand NFI decreased by 15% as a result of tough conditions in the mining and resourcing sector, Asia delivered NFI growth of 28%.
In a conference call to analysts and investors, after Hays announced a 3% increase in like-for-like net fee income (NFI) in the quarter ended 31 December 2013 compared to the same quarter in 2012, Paul Venables said that there was evidence of improved confidence among UK clients and candidates.
“Hiring decisions are being made quickly, and if somebody leaves they move to replace them very quickly: that’s all positive,” said Venables.
On the back of these improved market conditions, Venables said Hays’ NFI from permanent placements rose by 17%, their highest growth rate for six years. NFI from Hays’ temporary business also grew, albeit it less strongly at 5%, with overall NFI up 10%.
The East of the UK, London, the Midlands, Northern Ireland, the North-West and Scotland, each of which grew by more than 10%, while Ireland delivered net fee growth of 30%.
Venables said that construction and property had been particularly strong as the sector recovered after a number of weak years.
Venables added that in order to support the expected continuing growth in the UK business, Hays had targeted a 5-10% increase in UK headcount in the next six months.
Hays’ continental Europe & rest of the world division region recorded a 5% increase in NFI, with Germany producing a strong performance, with accountancy & finance up 29% and construction & property, sales & marketing and legal all growing NFI by over 10%.
Hays’ Asia-Pacific division produced mixed results. While in Australia and New Zealand NFI decreased by 15% as a result of tough conditions in the mining and resourcing sector, Asia delivered NFI growth of 28%.
