Hays plc, the world’s sixth-largest staffing firm, reported strong growth in its global operations in its fiscal year ended June 30. Turnover, or revenue, at the London-based firm rose 13% both on an actual and “like-for-like” basis, which measures organic growth of continuing operations at constant currency. Net fees, or gross profit, rose 12% like-for-like.
Hays noted strong conditions in the majority of its markets, and conditions in the UK remained stable.
| (£ millions) | FY 2018 | FY 2017 | % change | % change like-for-like | FY 2018 (US$ millions) |
| Turnover (revenue) | £5,753.3 | £5,081.0 | 13% | 13% | $7,566.5 |
| Net fees (gross profit) | £1,072.8 | £954.6 | 12% | 12% | $1,410.9 |
| Gross margin | 18.6% | 18.8% | – | – | – |
| Profit for the year | £165.8 | £139.1 | 19% | – | $218.1 |
The strongest growth in gross profit occurred in the company’s “Rest of World” segment, which comprises 28 countries, including the US. Hays reported it is investing significantly in the US and Canada; gross profit rose by 28% in the US and by 16% in Canada. However, gross profit in Mexico fell by 2%.
In Germany, the company’s largest market, Hays reported strong growth in gross profit, although earnings were affected by three fewer working days than the prior years.
Gross profit by region
| (£ millions) | FY 2018 | FY 2017 | % change | % change like-for-like | FY 2018 (US$ millions) |
| Australia and New Zealand | £199.4 | £180.7 | 10% | 14% | $262.2 |
| Germany | £276.0 | £230.3 | 20% | 16% | $363.0 |
| United Kingdom and Ireland | £258.2 | £252.9 | 2% | 2% | $339.6 |
| Rest of World | £339.2 | £290.7 | 17% | 17% | $446.1 |
“Looking ahead, conditions remain positive in virtually all of our markets,” Chief Executive Alistair Cox said. “We are investing significantly in key growth markets where we see structural and market share opportunities, notably Germany, France and the USA.”
Share price and market cap
Shares in Hays closed down 4.34% in London to £194.00. The company had a market cap of £2.93 billion.