Bumper year for Hays as record growth dispels Brexit wobble

Sebastian McCarthy
U.S. Jobless Rate Reaches Six Percent
Hiring in international markets like Germany and Australia pushed the recruitment firm's growth to record levels

Leading recruitment firm Hays has fought off Brexit worries to project better-than-expected profits for the year amid booming international growth.

The FTSE 250 firm said that profits for 2018 were likely to be "marginally ahead" of expectations of £240.9m, as like-for-like net fee growth in the three months up to 30 June jumped by a record 15 per cent.

Hiring in Germany and Australia fueled the positive outlook with like-for-like net fees soaring 16 per cent and 14 per cent respectively.

Read more: British headhunting giant Hays reckons German jobs are key to its future

Uncertainty around Britain’s departure from the EU has spooked fear that the UK recruitment sector might struggle amid current political volatility.

However, while UK conditions have remained more muted than international markets for Hays, domestic net fees in the last quarter still grew by 5 per cent.

Alistair Cox, chief executive of Hays, said: "Australia and Germany continued to perform strongly, and despite continuing economic uncertainties our UK business has seen modest improvement."

Read more: UK recruiters report a fall in hiring from the EU27

Cox added: "Looking ahead, conditions remain positive in virtually all of our markets. We continue to invest significantly in key growth markets where we see structural and market share opportunities, notably Germany, France and the USA. Our focus continues to be on driving profitable, cash-generative growth, leveraging the largest and most balanced global platform in our industry. That allows us to look to the future with confidence."

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