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HAS - Hays News Story

166.8p 0.2  0.1%

Last Trade - 4:35pm

Sector
Industrials
Size
Mid Cap
Market Cap £2.44bn
Enterprise Value £2.31bn
Revenue £6.07bn
Position in Universe 263rd / 1841

UPDATE 1-Overseas growth leads Hays to report flat quarterly fees amid UK weakness

Tue 15th October, 2019 8:11am
(Adds details on Q1 results, analyst comment, share price)
    Oct 15 (Reuters) - Recruiter Hays Plc  HAYS.L  posted a flat
first-quarter net fees on Tuesday as strong hiring in the United
States and China offset a drop in the United Kingdom, where
recruitment has been squeezed by Brexit uncertainty.
    Germany, the company's largest market, also had no growth in
net fees as slumping exports sent its economy to the edge of a
recession, with manufacturers struggling at the sharp end of a
global slowdown.
    However, Hays' net fees was "better than feared", especially
given the profit warnings from its peers last week, Jefferies
analysts said.
    PageGroup Plc  PAGE.L  and Robert Walters Plc  RWA.L  warned
last week that their profits would be hit by raft of
geo-political issues across continents, ranging from Brexit to
the protests in Hong Kong.
    Hays said private-sector candidate confidence weakened in
the first quarter. Businesses in London and the rest of the
United Kingdom have put off major hiring decisions, as the
country grapples with what terms it will leave the European
Union, or indeed whether it will leave at all.
    The company, which operates in 33 countries, said net fees
fell 4% in the United Kingdom and Ireland in the first quarter
ended Sept. 30. (https://reut.rs/2IO0cPZ)
    Threats of recession in Europe's major economies have left
Britain's recruiters, important barometers for the British
economy, scrambling to expand overseas to keep their bottom
lines afloat.
    Net fees in the United States rose 12% and increased 7% in
China.
    The company's shares were up 5.4% at 151.50 pence in early
trading.

 (Reporting by Uday Sampath in Bengaluru; Editing by Shounak
Dasgupta)
 ((UdaySampath.Kumar@thomsonreuters.com; within U.S.+1 646 223
8780; Twitter: @sampath_uday; Reuters Messaging:
UdaySampath.Kumar.thomsonreuters.com@reuters.net))
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