FINANCIALS: Permanent recruitment drives profit for Hays
8 January 2015
The permanent recruitment market is driving Hays’ profits, a trend which will continue for a few years, according to group finance director Paul Venables.
Thu, 8 Jan 2015
The permanent recruitment market is driving Hays’ profits, a trend which will continue for a few years, according to group finance director Paul Venables.
A trading update for the quarter ended 31 December 2014, released today [8 January] showed a 7% net fee growth, or 11% in constant currency terms compared to the same period last year.
Net fee growth in the perm market was 11%, or 16% in constant currency terms, compared to 4% or 8% in the temporary market.
Venables told Recruiter, two years ago companies were looking to increase headcount with interims but now there was a confidence in candidates to change jobs and that was what was driving perm growth.
In the UK, there was growth across all regions and specialisms but the upcoming elections posed some uncertainty for the coming year.
“Elections tend to slow things down a bit,” he said.
UK and Ireland, which represents the largest market for Hays, was the strongest performing region for the company, with net fee growth of 13% or 14% in constant currency terms.
Venables said in general, there had been a uniformity of growth across all regions and specialisms.
Australia was a highlight as, after a couple of tough years due to the economy, it delivered “meaningful growth” of 11%.
France was another good performer, with net fee income increasing a record 14%.
Venables said the company’s strength in the French market was in the interim sector but it had also increased headcount there by 16% in the last six months.
Recent heavy investment in China has also paid off for the company with a 36% net fee growth. There is still “a long, long way to go” though, Venables said. He added the company planned to triple headcount there over the next few years.
The acquisition of the majority of shares in Florida-based IT recruiter Veredus on 4 December has given additional strength to the company’s position in the US, which Venables said he hoped would “rapidly grow”.
He likened the acquisition to a similar one in Germany in 2003. This location has helped that country become the second largest earner for the Hays.
The permanent recruitment market is driving Hays’ profits, a trend which will continue for a few years, according to group finance director Paul Venables.
A trading update for the quarter ended 31 December 2014, released today [8 January] showed a 7% net fee growth, or 11% in constant currency terms compared to the same period last year.
Net fee growth in the perm market was 11%, or 16% in constant currency terms, compared to 4% or 8% in the temporary market.
Venables told Recruiter, two years ago companies were looking to increase headcount with interims but now there was a confidence in candidates to change jobs and that was what was driving perm growth.
In the UK, there was growth across all regions and specialisms but the upcoming elections posed some uncertainty for the coming year.
“Elections tend to slow things down a bit,” he said.
UK and Ireland, which represents the largest market for Hays, was the strongest performing region for the company, with net fee growth of 13% or 14% in constant currency terms.
Venables said in general, there had been a uniformity of growth across all regions and specialisms.
Australia was a highlight as, after a couple of tough years due to the economy, it delivered “meaningful growth” of 11%.
France was another good performer, with net fee income increasing a record 14%.
Venables said the company’s strength in the French market was in the interim sector but it had also increased headcount there by 16% in the last six months.
Recent heavy investment in China has also paid off for the company with a 36% net fee growth. There is still “a long, long way to go” though, Venables said. He added the company planned to triple headcount there over the next few years.
The acquisition of the majority of shares in Florida-based IT recruiter Veredus on 4 December has given additional strength to the company’s position in the US, which Venables said he hoped would “rapidly grow”.
He likened the acquisition to a similar one in Germany in 2003. This location has helped that country become the second largest earner for the Hays.
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