Recruiters Michael Page International (MPI) and Hays (HAS) have reported strong first- and third-quarter results respectively, although both sets of trading figures were marginally behind consensus forecasts. Hays achieved group net fee income (NFI) growth of 8 per cent on a constant currency basis during the first three months of the year, compared with consensus estimates of 9 per cent. Michael Page increased its NFI by 11 per cent, just shy of 12 per cent consensus estimates.
Hays' Asia-Pacific business put in the best performance, delivering 9 per cent NFI growth. In Japan, at one of the group's four "future material profit drivers" and its largest Asian business, NFI rose by more than a quarter.
Unsurprisingly, macroeconomic factors continue to drag on the recruitment industry in Brazil, where NFI was down 14 per cent for Hays. But its German business showed signs of a turnaround, posting 4 per cent net fee growth, as the group added 40 consultants to the business. Finance director Paul Venables said the group intends to repeat this during the next quarter, as it seeks to take advantage of the opportunities presented by the country's immature recruitment market.
While NFI for the UK and Ireland business grew 8 per cent, it slowed through the quarter. Mr Venables said public sector clients had been more cautious due to the upcoming general election. He also cited "tougher comparables" with last year, when its domestic business delivered its strongest NFI growth in six years at 14 per cent.
First-quarter results for rival Michael Page told a similar story. On a constant currency basis its Emea business fared the best, with NFI up 12 per cent. Southern Europe and Germany were particularly strong, growing 29 per cent and 17 per cent, respectively. Its US business faced tougher comparatives and grew 7 per cent on a constant currency basis, offset by a stellar 35 per cent NFI surge in Canada. Chief executive Steve Ingham said NFI performance in the US was also depressed due to extreme winter weather conditions on the east coast.
