Hays (LSE:HAS) completed the sale of its operations in six European countries to Meraki Capital on 16 June, receiving net cash proceeds of approximately £4 million after transaction costs and working capital adjustments.
The specialist recruitment businesses sold focus primarily on serving local customers and together form part of a broader portfolio the FTSE-listed staffing group has been exiting over the past year, including a prior disposal of four other countries.
The transaction will trigger a modest non-cash loss on sale, to be recognised in the second half of Hays' financial year ending 30 June.
Hays is also exploring options for a further seven markets: Belgium, Brazil, Greater China, Malaysia, the Netherlands, Singapore, and the UAE.
In aggregate, all 13 countries under review are expected to generate broadly break-even pre-exceptional operating profit on approximately £85 million in net fees for the 12 months to 30 June.
The strategy leaves Hays concentrating resources on a remaining core of 16 countries, where management believes it can build scale and establish leading market positions.
"Reshaping our portfolio to provide a sharper focus and build scale in high performing and high potential markets remains a key strategic priority," said Chief Executive Mark Dearnley.
