October 14, 2021
Global staffing provider Hays plc said net fee, or gross profit, rose 41% year-on-year on a like-for-like basis in its fiscal first quarter ended Sept. 30. Gross profit from permanent placement rebounded faster than temporary compensation. The UK-based company also delivered record gross margin growth in its US operations of 66%, while Canadian gross margin increased 60%, both on a like-for-like basis, representing organic growth. from continuing operations at constant exchange rates.
Year-over-year gross profit growth by geography and Q1 segment 22
|Real||As for as|
|Australia and New Zealand||29%||34%|
|UK and Ireland||44%||45%|
|Rest of the world||37%||45%|
“We got off to a good start to our fiscal year, with sequential fee growth in all major markets. Twelve countries produced record net fees, including the United States and China, and our global Hays Technology business also achieved record fees,” said Managing Director Alistair Cox.
Hays reported gross margin improvement across all regions in the first quarter, and permanent placement business continued to rebound faster than temporary placements with gross margin growth of 65%.
Hays generates more than a quarter of its gross margin, 26%, in Germany while Australia and New Zealand account for 17%. The company said its UK and Ireland operations generate 23% of its gross profit while its ‘rest of the world’ geography – which includes the US, Asia and other parts of Europe – generates 34%.
In terms of the split between temp and permanent, Hays generates 56% of its 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 & Real Estate.
For more in-depth coverage of Hays, please see today’s European issue of Staffing Industry Daily News.
Stock price and market capitalization
Shares of 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 capitalization of £2.73 billion (US$3.72 billion).