Hays has posted strong second-quarter growth as companies ramped up the recruitment of staff on temporary contracts.
Though the FTSE 250 recruiter failed to top its record first-quarter performance, its net fees still increased by a healthy 11 per cent, aided by a weaker pound and a greater focus on the most high-value territories.
Hays noted a modest drop in permanent hiring levels during the period, which it blamed on consumer and client uncertainty, particularly in the US.
Although fees in its permanent segment expanded by 7 per cent, they grew at a faster pace in its temporary and contracting business for the first time in seven quarters.
One man told in great detail how he killed a snake when asked if he had overcome any obstacles. Pictured, stock image.
Like-for-like growth was mainly driven by a record result in its biggest market, Germany, thanks to high contractor volumes and soaring demand from the human resources, engineering, accountancy and finance industries.
Eight other countries earned their best-ever fees for the group, as did its technology specialism despite widespread layoffs across the sector and an extremely strong comparative performance the previous year.
Since Covid-19 restrictions began to loosen in 2021, the recruitment industry has benefited from a resurgent employment environment that is also experiencing a shortage of applicants across numerous disciplines.
Employers have responded to the tightening labour market by hiking wages, thereby providing a windfall for agencies like Hays, whose income is typically based on the percentage of a successful candidate’s annual salary.
However, as central banks have gradually raised interest rates to try and dampen price rises and consumers ease their spending habits, employers are being more cautious with their hiring plans.
Nevertheless, chief executive Alistair Cox said the structural trends influencing the jobs market put the company in a favourable position for further growth.
He told investors on Tuesday: ‘Our key markets continue to be characterised by acute skill shortages and wage inflation, and we are focused on further increasing fee margins while closely managing our overheads.
‘I am confident our highly experienced management teams globally will continue to navigate the shorter-term macroeconomic challenges while capitalising on the long-term opportunities which are so apparent.’
Operating profits for the six months ending December are forecast to be £95million to £97million, slightly down on the equivalent period last year, yet the overall range aligns with company expectations.
Last week, fellow British recruiters PageGroup and Robert Walters both lowered their annual earnings outlook as a result of the more challenging economic backdrop.
Hays shares were up 1.9 per cent to 121.3p not long before trading closed, making it one of the ten biggest risers on the FTSE 250 Index.
