Hays Returns To Growth On Strong International Divisions

The U.K.'s largest recruiter Hays PLC (HAS.LN) Thursday said it has returned to year-on-year growth in net fees, driven by its international business, despite continued woes in the U.K. public sector.

Chief Executive Alistair Cox said "whilst we remain mindful of the risks to the economic recovery in many of the countries in which we operate, the outlook in our markets continues to improve."

Hays reported fourth-quarter net fee growth of 14%, or 8% organic growth and at constant currency, with Asia Pacific showing the strongest growth followed by Continental Europe and the Rest of the World division.

But net fees fell 6% in the U.K. and Ireland, with growth in the private sector offset by reduced demand in the public sector. In the private sector, net fees grew 10% from the previous quarter but in the public sector, net fees fell by 14%. The company is now redirecting consultants from the public sector to the private sector.

Temporary placements grew 3% while permanent placements grew 33%.

Hays shares closed Wednesday at 91 pence, giving the company a market capitalization of GBP1.25 billion. They've fallen 19% in the past three months on fears that planned U.K. government spending cuts will hit confidence and discourage people from changing jobs.

-By Anita Likus, Dow Jones Newswires; [phone]; [e-mail]