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Hays gross profit up 9% in fiscal first quarter, but growth slows

October 11 2018

Growth in net fees, or gross profit, slowed at Hays plc in the company’s third quarter ended Sept. 30. However, the UK-based firm, which ranks as the sixth-largest global staffing provider, cited strong results in Germany, its largest market; and in its rest-of-world segment that includes other European countries, the US and Asia.

Overall, Hays’ gross profit rose 9% year over year in the recently closed third quarter on “like-for-like” basis, which measures organic growth of continuing operations at constant currency. That’s down from year-over-year growth of 15% in the fourth quarter ended June 30. Gross profit had risen 10% year over year in the first quarter of last year.

Gross profit growth by geography in fiscal first quarter ended Sept. 30

  Actual Like-for-like
Australia and New Zealand -1% 7%
Germany 12% 13%
United Kingdom and Ireland 3% 3%
Rest of World 12% 14%
Total 7% 9%

Chief Executive Alistair Cox said the company got its financial year off to a good start against increasingly tough comparatives.

“Looking ahead, while we are mindful of macroeconomic conditions, the outlook remains positive across our international markets,” Cox said. “We are continuing to invest in our key structural growth markets, notably Germany, France, the USA and Asia, to capitalize on the many opportunities we currently see.”

Gross profit in Germany rose 13% on a like-for-like basis in the first quarter ended Sept. 30; the country represents 27% of total gross profit for the company.

Gross profit rose 27% in the US as well as Canada, while gross profit in Mexico fell 7%.

Looking at gross profit growth by segment, temporary staffing gross profit rose 8% while permanent placement rose 13%.

Shares in Hays closed down 10.97% today in London at £156.70.

For more on Hays, see today’s story in the European issue of the Staffing Industry Daily News, “World – Hays receives boost from rest of world and Germany.”

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