Recruiter Hays (HAS) grew its annual conversion rate - the ratio of operating profit to gross profit - by 210 basis points to 21.5 per cent. This is the first time the rate has breached the 20 per cent mark since 2009. This is testament to the continuing uptick in employer confidence, particularly in the UK and Ireland. Hays' domestic business increased operating profit by almost three-quarters to £45.7m for the 2015 year-end. Group net fee income rose 9 per cent on a like-for-like basis, which translated into operating profit growth of almost a fifth to £164m.
In Asia Pacific net fees were up 7 per cent on a constant currency (CC) basis. The group's Australian business accounted for three-quarters of the fee growth and delivered a 5 per cent increase in CC operating profit. Chief executive Alistair Cox said the Australian economy had experienced "quite a patchy recovery". Encouragingly, however, like-for-like permanent fees were up 17 per cent. Germany, the US and Canada were all bright spots for the group's 'rest of the world' segment. Consultant headcount for the division grew 13 per cent. In Germany, headcount was increased 14 per cent to focus on small- and medium-sized clients. As expected, Brazilian net fee income fell 13 per cent, as macroeconomic conditions remained challenging.
Broker Panmure Gordon expects adjusted EPS of 8.5p in 2016, up from 7.3p last year.
HAYS (HAS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 158p | MARKET VALUE: | £2.25bn | |
| TOUCH: | 157.4-158p | 12-MONTH HIGH: | 174p | LOW: 108p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 19p* | NET DEBT: | 11% | |
| Year to 30 Jun | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 3.26 | 111 | 5.2 | 5.80 |
| 2012 | 3.65 | 122 | 5.5 | 2.50 |
| 2013 | 3.70 | 119 | 5.1 | 2.50 |
| 2014 | 3.68 | 132 | 6.1 | 2.63 |
| 2015 | 3.84 | 156 | 7.4 | 2.76 |
| % change | +4 | +18 | +21 | +5 |
Ex-div: 8 Oct Payment: 13 Nov *Includes intangible assets of £228m, or 16p a share | ||||
