Revenues rise at Hays
Recruitment giant Hays has seen revenues rise on the back of strong international growth but plummeting public sector recruitment activity has seen UK net fees fall, according to preliminary result
Recruitment giant Hays has seen revenues rise on the back of strong international growth but plummeting public sector recruitment activity has seen UK net fees fall, according to preliminary results for the year ended 30 June 2011.
The group’s results reveal:
Year ended 30 June (In £’s million) | 2011 | 2010 | Actual growth | LFL* growth |
| Net fees | £672.1m | £557.7m | 21% | 18% |
| Operating profit (before exceptional items)** | £114.1m | £80.5m | 42% | 33% |
| Cash generated by operations*** | £97.3m | £78.1m | 25% | |
| Profit before tax (before exceptional items)** | £106.6m | £71.1m | 50% | |
| Profit before tax | £110.7m | £29.7m | 273% |
* LFL (like-for-like) growth represents organic growth of continuing activities
at constant currency. There was one less trading day in 2011 versus 2010.
** 2011 numbers are presented before an exceptional credit of £4.1
million and 2010 numbers are presented before an exceptional charge of £41.4
million.
*** 2011 numbers exclude cash impact of exceptional items of £15.4
million paid in the year and 2010 numbers exclude cash impact of exceptional
items of £4.1 million paid in the year.
The group saw net fees rise in Asia Pacific by 30%, in its Continental & Rest of the World division by 33%, 60% growth in Brazil and 37% growth in Germany.
However net fees in the UK were down 1% with 19% private sector growth offset by a 35% decrease in the public sector.
Chief executive Alistair Cox says:”This is a strong set of results with operating profits up by 42%**. Our International performance was excellent, delivering 31%* net fee growth with the majority of our overseas operations trading at record levels. We have invested heavily in those businesses and will continue to do so, where market conditions remain appropriate, as the long-term structural growth opportunities are excellent. Our strategy of international diversification is delivering returns and two-thirds of our group’s net fees are now generated outside the UK.
“The UK market has been tougher, particularly as recruitment activity in the public sector has dropped significantly over the year. The UK private sector grew strongly in the first half but growth slowed as the year progressed. Consequently, we took early action to both reduce costs as well as focusing our resources on those areas offering the best opportunities.
“While we remain mindful of the continuing economic and fiscal uncertainty around the world, we continue to see good levels of momentum across most of our markets. In Asia Pacific we continue to see good growth in Australia & New Zealand and strong growth in Asia. In Continental Europe & Rest of World growth remains strong across the division, led by our German business. In the UK we have seen slowing levels of growth in the private sector business, with continued tough but broadly stable markets in the public sector.”
