Hays shares rose 4.3% to 119.7p in early morning trading on Thursday, following a reported 32% climb in net fees to £1.1 billion in HY1 2022 against £918.1 million in HY1 2021.
Hays confirmed record fee performance across 24 countries, linked to strong client and candidate confidence, management actions and continued improvement in fee margins.
Fees rose 24% in Australia and New Zealand, a record 34% in Germany, 31% in the UK and Ireland and 36% in the rest of the world.
The recruitment company announced an operating profit surge of 121% to £210.1 million compared to £95.1 million the last year.
Hays mentioned a cash generated by operations growth of 40% to £182.9 million from £130.8 million.
“Performance in all regions was excellent. Our actions to capitalise on long-term structural opportunities, acute skill shortages and strong markets, supported by our ability to increase fee margins and the benefits of wage inflation, delivered record Group fees, 24 country records and 128% operating profit growth. Germany, our largest business, was the biggest absolute contributor to our profit growth, while the UK&I and RoW divisions delivered strong profit recoveries,” said Hays CEO Alistair Cox.
“With macroeconomic uncertainties increasing, we are closely monitoring our activity levels and KPIs, which remain broadly stable overall at strong levels. Our focus is now on leveraging the investments we have made and increasing our already strong consultant productivity.”
“We have a clear strategy to continually build market-leading positions in the most attractive structural growth markets, which are characterised by ongoing skill shortages. Our global network, financial strength and highly experienced management teams give me confidence that we can navigate current uncertainties and remain highly focused on delivering our long-term objectives.”
Meanwhile, the company also noted an increase in its share buyback programme to £75 million after adding an additional £18.2 million over the period.
Hays recommended a core dividend of 2.85p per share from 1.22p the year before, along with a 7.34p special dividend per share against 8.93p in HY1 2021.
