Hays plc, a London-based global staffing firm, reported net fees (gross profit) fell 14% on a like-for-like basis in its fiscal third quarter ended March 31. Both temporary placement and permanent placement recorded net fee declines.
“Market conditions remained challenging through the quarter,” Chief Executive Dirk Hahn said in a press release.
The company also reported conditions are expected to remain challenging but broadly stable in the near term.
Looking back at Hays’ third quarter, temporary placement net fees fell 12% like for like. The company noted the decrease was against a record period in the previous year. Temp comprises the lion’s share of net fees at 60% for the company.
“Like for like” represents year-over-year organic growth of continuing operations at constant currency.
Perm net fees fell by 18% like for like. Hays reported it’s seeing longer than usual time to hire in perm because of relatively low levels of client and candidate confidence.
Geographies
Net fees were down across the geographies served by Hays, with the steepest decrease in Australia and New Zealand. They were down 29% on a like-for-like basis, with Australian net fees down by 20% and New Zealand down by 45%.
Hays includes Americas net fees in its rest-of-world segment, which comprises in 28 countries in the Americas, Europe and Asia. Americas net fees fell 19% on a like-for-like basis, with the US down 20% and Canada down 16%. Net fees in Asia fell by 8%, while net fees in Europe (excluding Germany, the UK and Ireland) fell by 9%.
Hays’ consultant headcount decreased by 16% year over year, and total group headcount fell 13% year over year as the company focused on its efficiency programs. The company also noted a £12.6 million (US$16.0 million) exceptional restructuring charge in the first half of this fiscal year with further restructuring charges expected in the second half.
Hays ranks among the largest global staffing firms and had 11,600 employees in 248 offices in 33 countries as of March 31. Its four largest segments served are technology, accountancy and finance, engineering and construction and property.
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Share price
Shares in Hays closed down 4.32% today in London to £88.50 (US$110.28). They were 1.61% above their 52-week low.