Recruiter Hays hails record performance: to take £5 million Russian hit

Recruitment giant Hays enjoyed a record performance at the start of 2022 amid a shortage of skills worldwide, but revealed a hit of about £5 million after pulling out of Russia.

The group posted a 32 per cent leap in like-for-like fees over its third quarter to the end of March, with record-breaking results across 19 countries and its highest-ever monthly fees in March. Fees in the UK and Ireland were up by 29 per cent..

It said the closure early last month of its offices in Russia due to the invasion of Ukraine will result in about £5m in one-off costs. The sites in Moscow and St Petersburg accounted in half-year results for around £5.9m in group fees and about 1 per cent of company earnings.

Full-year guidance remains for full-year operating profits of between £210m and £215m, excluding the Russia hit.

Hays is beefing up its operations to match a buoyant jobs market.

The group said wages were rising globally in response to steep rises in the cost of living.

Chief executive Alistair Cox said: “While we are mindful of increased macroeconomic and geopolitical uncertainties, client and candidate confidence remains strong, with continued skill shortages and rising wage inflation globally.”

The group said it had boosted its consultancy workforce by 4 per cent since the end of last year - up 27 per cent year-on-year - and expects to add up to another 3 per cent in its final quarter as it beefs up its operations to match a buoyant jobs market.

Official figures earlier this week confirmed the jobs market in the UK remains solid, with the rate of unemployment falling further below pre-pandemic levels, to 3.8 per cent - the lowest since December 2019.

But there were signs of easing demand for staff, with the smallest monthly increase in UK payrolled workers since February last year, with vacancy growth also slowing.

Hays said the UK and Ireland region - which accounts for 22 per cent of group net fees - saw third-quarter performance led by permanent jobs recruitment, up 59 per cent, while temporary hiring fees rose 13 per cent.

The north west and the south east of England had stand-out fee growth of 49 per cent and 41 per cent respectively, while Ireland enjoyed a 61 per cent surge.

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