Hays FY profit jumps on solid Europe performance, special dividend announced
FTSE 250 recruiter Hays posted a rise in full-year profit on Thursday as it announced its first special dividend following a solid performance in Europe and a stabilisation in the UK.
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In the year to the end of June, pre-tax profit increased to £204.6m from £173m the year before, with net fees of £954.6m, up from £810.3m. Operating profit rose 17% to £221.5m, driven by international profit growth and exchange rate gains, and the group declared a special dividend per share of 4.25p.
Meanwhile, the full-year dividend was lifted by 11% to 3.22p per share.
Hays said that overall market conditions remained good, with many clear opportunities to grow, particularly in several European countries and Australia, where growth accelerated significantly throughout the year.
In the UK, the company saw a marked stepdown in private sector permanent recruitment activity in the immediate aftermath of the EU referendum, but the market stabilised quickly and there were modest signs of improvement in the second half, although UK public sector markets remained tough throughout the year.
Like-for-like operating profit in the UK and Ireland fell 20% to £41.5m, with net fees down 7% to £252.9m. However, in Continental Europe & Rest of World, LFL operating profit rose 7% to £100.7m, while net fees were up 12% £470.8m thanks to record performances in Germany and France.
Chief executive Alistair Cox said: "As we enter our new year, conditions remain good in the vast majority of our markets and we see many clear opportunities to grow. Our diverse and balanced global business, together with our highly experienced management teams and our strong balance sheet means we are well positioned to capitalise on these growth opportunities while maximising earnings and cash along the way."