Hays raises profits guidance

Recruitment firm Hays has posted a 12 per cent actual increase in group net fees for the quarter ended March 31st.

As a result the firm expects full-year operating profit to be towards the top of the current market estimates.

The firm's international business delivered strong growth of 18% and represented 70% of net fees in the quarter, with strong growth of 26% in continental Europe and the rest of the world, largely driven by the group's performance in Germany, which gained 36%.

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Growth was 9% in Asia Pacific as well as Australia and New Zealand, while in the UK and Ireland net fees fell 2%.

Alistair Cox, Chief Executive, said: "We have made an encouraging start to the second half with good performances in many parts of the group. 13 countries around the world grew by over 20% and our market-leading German business was amongst seven countries that delivered record performances. In the UK, markets remain difficult, especially in Banking and the public sector.

"Looking ahead, many parts of the group continue to grow, but ongoing uncertainty about the global economic outlook means that our markets around the world remain complex and far from uniform. Against this backdrop, we will continue to invest selectively in growth areas whilst at the same time reacting to changing conditions in each of our countries and specialisms to maximise fees and profitability."

Shares jumped 8.74% to 88.35p in early trading on Thursday.

NR