Commuters on London Bridge
(Picture: Getty Images)White-collar recruitment giant Hays has profited from “significant skill shortages” particularly in the technology and accountancy sectors.
It said it’s seen “high levels of business confidence, significant job churn and clear evidence of wage inflation” helping its UK business to rebound sharply.
Boss Alistair Cox said: “As the economic recovery accelerated globally, client and candidate confidence strengthened, leading to significant skill shortages across all our markets.”
Fees for the half year to the end of December were up 39% and operating profit soared 327% to £101.6 million.
UK fees climbed 39% on a like-for-like basis pushing operating profits up to £18.2 million compared to a £1 million loss in the same period in 2020.
“Our New Year ‘return to work’ has been good overall,” said Cox.
The company said “performance was excellent” in both permanent and temporary staff, with fees increasing for permanent placements and “strong growth” in temporary volumes.
Things are expected to continue in the same vein in the coming months with the firm pleasing investors by saying 2022 profits will be better than expected at between £210 million and £215 million.
“We see an even clearer route to exceeding previous peak profit levels,” Cox said. “I am confident we will take further market share, maximising the benefits from both the cyclical recovery and from building leading positions in the sectors of greatest long-term opportunity.”
The company added around 1,100 consultants in the last six months, boosting its workforce by almost a tenth to 12,100.
Investors are anticipating a substantial special dividend on the back of the full year results.
