Hays Plc (LON:HAS), today announced half year results for the six months ended 31 December 2018.
|
Six months ended 31 December |
2018 |
2017 |
Actual |
LFL |
|
Net fees(1) |
568.0 |
525.8 |
8% |
9% |
|
Operating profit |
124.1 |
116.5 |
7% |
9% |
|
Conversion rate(2) |
21.8% |
22.2% |
(40)bps |
|
|
Cash generated by operations |
78.5 |
74.1 |
6% |
|
|
Profit before tax |
122.6 |
113.9 |
8% |
|
|
Basic earnings per share |
5.86p |
5.39p |
9% |
|
|
Dividend per share |
1.11p |
1.06p |
5% |
|
Note: unless otherwise stated all growth rates discussed in this statement are LFL (like-for-like) year-on-year net fees and profits, representing organic growth of continuing operations at constant currency.
· First half operating profit up 9% to £124.1m driven by good Temp and Perm growth in our International markets. 20 countries delivered record net fees
· Australia & New Zealand (ANZ): 7% net fee growth, with operating profit up 6%. Record Australia net fees, up 10%, and Temp and Contracting worker numbers exceeded 21,000 for the first time
· Germany: Record half, with strong growth in both net fees and operating profit of 14% (growth of c.13%(3) and c.10%(3) respectively on a trading day-adjusted basis). Continued investment in systems and property
· UK & Ireland (UK&I): Solid growth with net fees up 3% and operating profit up 6%, with continued focus on productivity and good cost control as headcount remained flat year-on-year
· Rest of World (RoW): Strong net fee growth of 11%, with operating profit up 4%. Strong progress in Asia and the Americas, although fee growth in EMEA ex-Germany slowed across the half. Record net fees in 18 markets including China and Canada, up an excellent 31% and 27% respectively, the USA up 17% and France up 5%
· Strategic developments: During the half key strategic highlights included:
– Infrastructure: Five new offices globally, plus major office expansions in Asia, Europe and the Americas. Continued investment in back office scalability, including our leading businesses in Germany and Australia
– Consultants: Group headcount up 7% YoY, led by our International businesses up 10%. China, the USA and Canada each up over 20% YoY
· Net cash of £32.5m, with good underlying conversion of operating profit into operating cash flow
· Interim dividend up 5% to 1.11p
Commenting on the results Alistair Cox, Hays Chief Executive, said:
“We have delivered another good first half, and despite increasingly tough comparatives are pleased to report 9% net fee and profit growth. Conditions were supportive in most of our markets, with 20 of our 33 countries delivering record net fees. This included our largest countries by profit, Germany and Australia, as well as exciting growth markets such as China, Canada and the USA. UK&I delivered another solid result, with 6% profit growth despite economic uncertainties.
“Our Group growth is testament to the strength of our diversified global portfolio and our leading positions in key structural growth markets. We continued to invest through the half, increasing our International consultant headcount by 10% and further building on our technology and infrastructure. Underlying cash conversion remained good, and we are pleased to grow our interim dividend by 5%.
“Looking ahead, although we remain mindful of continuing macroeconomic uncertainty, the outlook in the vast majority of our markets remains positive. Our second half focus will be on driving consultant productivity, while selectively investing in our key markets to build on our existing scale, balance and diversity. Our financial strength and highly experienced management teams stand us in good stead for the future.”
