The record quarter results included 19 country records and a record fee month in March. Group fees were up by 32%, with permanent (perm) placements up 48% and temporary (temp) placements up 21%, the company said. 

The company’s activities during the quarter included the closure of the company’s Russia operations in March.

Among the highlights:

• Australia & New Zealand (ANZ): fees up 24%, with activity improving towards the end of the quarter as the effects of the pandemic eased, particularly in perm, up an excellent 57%. Temp fees were up 9%.
• Germany: record quarter with fees up 32%. Temp and contracting were up 30% and perm up 43%. Activity levels remained strong, including record fees and contractor numbers in March.
• UK & Ireland (UK&I): fees up 29%, led by perm performance, up 59%, with temp up 13%. The private sector, up 40%, “significantly outperformed” the public sector, up 9%, Hays said.
• Rest of World (RoW): fees were up by 36%, led by perm up 43% and temp up 24%. Record fees were reported in EMEA and the Americas, and set 17 new RoW country records. Fees in EMEA with the exception of Germany increased by 33%, the Americas by 54% and Asia by 27%, despite a slowing of growth in China due to pandemic restrictions
• Group consultant headcount increased by 4% in the quarter and by 27% year-on-year, as Hays balanced investing in attractive structural areas such as life sciences and technology with driving strong levels of productivity
• Strong net cash position of c.£240m, in line with our expectations (31 December 2021: £236m; 31 March 2021: c.£385m)

Commenting on the Group's performance, CEO Alistair Cox said, "We delivered record quarterly fees, including a Group fee record in March and continued strong performances in all regions. Overall, 19 countries produced quarterly fee records, including our largest country of Germany, which saw strong activity levels, the US, France and Switzerland. In ANZ, fees and activity improved towards the end of the quarter as pandemic impacts eased, while UK&I delivered another excellent quarter, led by perm as business confidence remained high.

The quarter represented a net fee record for the Group, up 32% on a like-for-like basis versus the previous year, despite a 9% “tougher prior year quarterly growth comparative”, Hays said. On an actual basis, net fees increased by 29%, with the strengthening of sterling versus the euro and Australian dollar reducing our reported net fees. Growth and activity levels were strong in all regions, and March delivered an all-time fee record, with a fee growth exit rate of 26%.

On 3 March 2022, Hays announced that due to the ongoing conflict in Ukraine, the company had taken the decision to close its offices in Moscow and St Petersburg, cease trading with immediate effect and exit Russia. In H1 FY22, Russia represented £5.9m of Group net fees, or around 1%, and £0.8m of operating profit. The company has provided c.£5m for one-off closure costs, “which we will incur as an expense in H2 FY22”, Hays said.

“We are also acutely aware of the humanitarian crisis impacting Ukrainian refugees. In response, we established a ‘Hays Helps’ Ukraine Fund to provide aid and employability support for Ukrainian refugees across Europe, with an initial Hays contribution of €100,000 (£82,946), and our employees have so far generously contributed a further €34,000. Funds are being allocated by Hays teams in Eastern Europe, supporting practical local humanitarian initiatives where they are most needed,” the company said.

Group consultant headcount increased by 4% in the quarter and by 27% year-on-year. Despite this increased headcount average productivity per consultant remained at strong levels, Hays said. The company went on to say: “We expect to add 1-3% to consultant headcount in Q4 FY22, mainly in our Strategic Growth Initiatives and in Germany, as we balance driving consultant productivity and profit growth with adding further capacity in long-term structural growth markets.”

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