Too early to assess trend in key Q1 month of Sept (Il Sole 24 Ore Radiocor) - London, 22 Aug - UK recruiter Hays said that in the full year ended June 30 it posted a net loss of 4.9 million pounds compared to a profit of 138.3 million the year earlier due to a challenging market reflecting low confidence and a longer time to hire.

Turnover fell a reported 8% and a like-for-like 6% to 6.949 billion pounds with an 8% comparable contraction in Temp and a 17% slump in Perm. Net fees fell a reported 14% and a like-for-like 12% to 1.114 billion pounds.

The decrease in fees was due to lower volumes in both Temp and Perm, partially offset by increases in its average fees per placement, driven by the impact of wage inflation and management actions. The higher net fee decline compared to turnover was due to the relatively resilient performance in Temp fees versus Perm, and the impact of greater resilience in MSP contracts.

Operating profit before exceptional items fell 47% and 46%, respectively, to 105.1 million pounds. The group booked 80.0 million pounds of exceptional charges, 42.2 million for restructuring and 37.8 million of impairments.

Hays said that performance in July and August was challenging but in line with expectations, while September is the key trading month in the first quarter, and it is too early to assess trends.

Hays confirmed its medium-term conversion rate target of 22-25%.

"To achieve this, as end markets recover and then grow, we will drive consultant productivity in excess of inflation through pricing and mix, technology tools and data. We have also identified efficiencies from greater consistency of operating models, and from reducing Group overhead costs," it said.

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(RADIOCOR) 22-08-24 11:58:46 (0273) 5 NNNN