Hays (LSE:HAS) told investors it expects full-year pre-exceptional operating profit to land at the top of the £37m to £46m consensus range.
The global staffing group, in its fourth-quarter trading statement for the three months ended 30 June, noted that group net fees fell 5% year on year on a like-for-like basis in the quarter, as stable Temp and Contracting volumes partly offset a modest further softening in permanent placement activity across several markets.
Consultant net fee productivity grew for an eleventh consecutive quarter, up 5% year on year, with Germany and Rest of World rising 6% and 10% respectively, while the company said it had secured approximately £50m of annualised structural cost savings in the financial year, reaching its £45m per annum target three years ahead of schedule.
The company also reshaped its country portfolio, completing the sale of six European operations to Meraki Capital for net cash proceeds of approximately £4m in June, and separately announcing it was exploring options for businesses in Belgium, Brazil, Greater China, Malaysia, the Netherlands, Singapore and the UAE; those 13 countries collectively generated broadly break-even pre-exceptional operating profit on approximately £85m of net fees in the full year.
Net cash stood at approximately £20m at 30 June, against net debt of approximately £15m at 31 March, described as in line with expectations.
"The YoY decline in Group net fees eased to 5% in Q4 driven by good Temp and Contracting growth in several of our countries," said Chief Executive Mark Dearnley, adding that near-term market conditions are expected to remain challenging with greater resilience in Temp and Contracting than in permanent hiring.
Full-year results are scheduled for 20 August.
