Hays Sees Uncertainty after EU Referendum, Fiscal Year Earnings Ahead--Update

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By Jana Simmons

LONDON--Hays PLC (HAS.LN) said Thursday that uncertainty in its U.K. business increased following the referendum on European Union membership as the recruiter reported full-year earnings growth ahead of market expectations.

The company said uncertainty across the U.K. market picked up during the period, particularly in the second half. This uncertainty increased leading up to, and immediately after, the referendum. Conditions are now broadly stable, but Hays said it is too early to tell how post-Brexit uncertainty will impact its business in the new financial year.

"Clearly the U.K. is tough, but at least it's stable, and at current levels, the international growth will more than outweigh any weakness in the U.K.," Finance Director Paul Venables told The Wall Street Journal.

Net fee income, a key profit measure in the staffing industry, rose to 810.3 million pounds ($1.1 billion) in the year ended June 30 compared with GBP764.2 million in the same period a year earlier. Net fees from the U.K. and Ireland were flat. Hays said its international business, which represents 66% of the group's net fees, continued to grow strongly.

Pretax profit was up 11% to GBP173.0 million. The full year dividend rose by 5% to 2.90 pence.

Shares at 0853 GMT were down 6 pence, or 4.6%, at 124.6 pence.

Write to Jana Simmons at [e-mail]

(END) Dow Jones Newswires

September 01, 2016 05:37 ET (09:37 GMT)

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