Hays gross profit rises 41% in fiscal Q1 with perm rebounding faster than temp
October 14, 2021
Global staffing provider Hays plc reported net fees, or gross profit, rose 41% year over year on a like-for-like basis in its fiscal first quarter ended Sept. 30. Permanent placement gross profit rebounded faster than temp. The UK-based firm also reported record gross profit growth in its US business of 66% while Canadian gross profit rose 60%, both on a like-for-like basis — representing organic growth of continuing operations at constant currency.
Gross profit year-over-year growth by geography and segment Q1 22
| || Actual|| Like for like|
| Australia and New Zealand|| 29%|| 34%|
| Germany|| 31%|| 39%|
| UK and Ireland|| 44%|| 45%|
| Rest of world|| 37%|| 45%|
| Total|| 36%|| 41%|
| || || |
| Temporary|| 22%|| 26%|
| Permanent|| 58%|| 65%|
| Total|| 36%|| 41%|
“We have made a strong start to our financial year, with sequential fee growth in all major markets. Twelve countries produced record net fees, including the USA and China, and our global Hays Technology business also hit record fees,” Chief Executive Alistair cox said.
Hays reported gross profit improved in all regions throughout the first quarter, and perm placement activity continued to rebound faster than temp placements with gross profit growth of 65%.
Hays generates more than a quarter of its gross profit, 26%, from Germany while Australia and New Zealand represent 17%. The company reported its UK and Ireland business generates 23% of its gross profit while its “rest of world” geography — which includes the US, Asia and other parts of Europe — generates 34%.
In terms of the split between temporary and permanent, Hays generates 56% of gross profit from temporary placements and 44% from permanent placements.
Hays has 256 offices in 33 countries. Its three largest segments served are technology, finance/accounting, and construction and property.
For further coverage of Hays, please see today’s European issue of the Staffing Industry Daily News.
Share price and market cap
Shares in Hays closed at £167.20 (US$227.90) today in London, 2.67% below their 52-week high, according to FT.com. The company had a market cap of £2.73 billion (US$3.72 billion).
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