Recruiter Hays said on Tuesday that full-year operating profit is set to beat market expectations as temporary and permanent activity has improved in all regions.
The company said that given improving fees and good underlying cost management, and assuming a continuation of current market conditions, operating profit for FY21 is expected to be at least £85m, versus market consensus of around £61m.
In its update for the three months to the end of March, Hays said activity levels improved in all regions and there was “strong” sequential group fee growth, particularly in March, which delivered the recruiter’s highest period of net fees since the start of the pandemic.
March fees were around 4% above this time last year, but remain 13% below March 2019.
“To date, second and third-wave lockdowns have had minimal negative impact on our fees,” Hays said. “However, the unpredictable nature of the pandemic means our forward visibility remains limited.”
In the third quarter, total net fees were down 9% or 10% on a like-for-like basis.
Chief executive officer Alistair Cox said: “Despite our markets remaining impacted by the pandemic, we continued to see improving momentum across the quarter and I am pleased to say group fees were ahead of our expectations. This was most evident in our largest market of Germany, driven by increased business confidence and client investments.
“Australia and the UK saw improvement, particularly in Perm, while fees in the Americas and Asia both grew sequentially, led by the USA and China. Overall, there are clear signs of skill shortages in certain industries, notably Technology and Life Sciences.”
