Hays share price drops as recruiter reports slight rise in net fee growth and profits before tax
Share price in Hays fell this morning after the recruiter revealed a slight rise in its profits in its half year results.
The company reported profits before tax of £82.4m for the six months ended December 2015, up seven per cent compared with £77.3m the year before.
Net fees for the recruitment company also inched up, rising to £396.9m, an increase of three per cent on an actual basis, or eight per cent on a like-for-like basis, compared with £383.9m in 2014.
However, share price in the FTSE 250 company dropped, trading down seven per cent at 115.4p shortly after 1pm London time.
Speaking with City PM, Alistair Cox, chief executive of Hays, remarked that he was "pleased" with the results, particularly given the state of the market over the period, stating that the company's geographical spread had given it to edge to beat out volatility in certain regions.
The recruiter performed particularly well in certain parts of continental Europe, with net fee growth in the double digits for Poland, Spain and Switzerland.
"I think if we had gone back a year, I would not have forecast that Europe has performed as strongly as it has performed," added Cox. "I would have forecast growth but not at the kind of very high double digit growth that we've seen in a number of places."
The company was also able to increase its interim dividend by five per cent.