Hays, a leading recruitment company in the UK, announced on Thursday that it experienced a 2% decline in group net fees during the fourth quarter of fiscal 2023. The company expects its operating profit for the full fiscal year to be in line with market consensus.
According to Hays, the decrease in net fees for the period ending June 30 can be attributed to a strong comparative period from the previous year and a more challenging market, particularly in the permanent segment, which saw a 9% decline.
Despite these challenges, Hays reported solid growth of 4% in the temporary and contracting segments, which together comprise 58% of fees. In contrast, fees in the private sector, accounting for 84% of group fees, declined by 4%, while the public sector saw a 6% increase.
Market consensus expectations for operating profit for the full year are approximately £196 million ($254.6 million), according to Hays.
Chief Executive Alistair Cox expressed confidence in the company’s performance, stating, “Our early management actions to increase average fee margins and control our costs have underpinned our performance, and consultant productivity is good overall, with headcount aligned to current market conditions. Our balance sheet strength and flexible business model mean we are well-positioned to adapt to market conditions while remaining firmly focused on our clear long-term growth strategy.”
For further information, contact Anthony O. Goriainoff.