Recruitment firm made hay while economic sun still shone around the globe

Feb 27 2008 by Our Correspondent, Western Mail

RECRUITMENT company Hays yesterday said international growth was helping to offset weakness in UK markets as it posted a 22% hike in half-year earnings.

The company said its strategy of expanding overseas to protect against a downturn in any single economy is now reaping rewards with its global arm attracting 40% of the group’s net fees.

Hays hailed “exceptional” trading at its Australian and New Zealand division, while net fees across Asia for the six months to December 31 surged to £5.8m from £1.2m a year earlier.

Meanwhile, net fees in mainland Europe increased 46% to £68.9m as the firm opened new offices in Spain, Switzerland, the Czech Republic and set up its first base in Hungary.

In the UK and Ireland net fees rose 13% to £225.3m. Hays said domestic profits climbed 5% to £70.6m but had been hit by legal changes affecting the status of temporary workers.

Hays chief executive Alistair Cox recently took over leadership of the UK and Ireland arm to oversee the division’s improvement and the number of UK consultants has risen 15% from 2,909 a year ago to 3,355.

Group net fees rose 26% to £374.8m while pre-tax profits climbed to £122.7m from £100.3m in 2006.

Mr Cox said, “This is an excellent result and it shows how we are capitalising on the many opportunities available to us right across the world.

“Our growth has come from all areas of our business: significant structural growth in continental Europe, a stunning performance in Australia and the aggressive roll out of our activities across Asia.

“We have made a good start to the second half of the year. While mindful of economic uncertainty, the board remains confident in its outlook for the year.”

Hays employs 8,673 staff operating from 391 offices in 26 countries.

The group placed around 68,000 candidates into permanent jobs during 2007 and paid around 46,000 temporary workers weekly.

The company’s shares have fallen around 40% in the past eight months on fears that a global economic slowdown will hit demand for its services.