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(Alliance News) - Hays PLC faced conditions "far harsher" than ever before, the employment recruiter said on Thursday, as it reported annual results that were shaken deeply by Covid-19.
Net fees were down 12% to GBP996.2 million in the year ended June 30 from GBP1.13 billion the year before. Pretax profit plunged 63% to GBP86.3 million from GBP231.2 million.
"The pandemic severely impacted all our markets globally. Our priority was protecting our colleagues and supporting our clients and candidates as they adjusted overnight to new realities. Facing conditions far harsher than I have known, our business rose to the challenge and I am immensely proud of the commitment and innovation of all our people. Overall, we have protected our business, while taking actions to appropriately reduce costs," Chief Executive Alistair Cox said.
Hays decided against making a payout, compared to a 3.97 pence core dividend per share a year earlier.
"However, our business model remains highly cash generative, and we remain acutely aware of the importance of dividends to shareholders and will look to return to paying dividends as soon as is appropriate. We also have a track record of returning capital, with GBP374 million in core and special dividends paid in respect of financial 2017 to financial 2019. When conditions improve, the board will consider how best to reinstate our capital returns policy," the company added.
By region, net fees fell 14% in Australian & New Zealand, by 13% in Germany, by 14% in the UK & Ireland, and by 7% in the Rest of World segment. Rest of World includes countries such as the US, Switzerland, Russia and Malaysia.
Hays added: "Overall, the outlook remains tough across our main markets. Temp markets are stable overall, with signs of modest improvement in Perm. We have experienced a high degree of correlation between individual countries' trading and the severity of lockdown in that country. Any 'second wave' lockdowns may have short-term negative effects on activity levels, and potentially delay country recoveries."
Hays shares were 0.6% lower at 116.70 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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