Hays UK hit by slower temps demand
Reduced public-sector spending, particularly at the NHS, saw recruitment firm Hays bank flat UK profits for the first half of its financial year today.
The firm said challenging conditions in the temporary sector led to reduced margins and low volume growth.
This was partly due to procurement initiatives within the public sector, which makes up 35% of the division, in order to reduce staffing costs.
UK profits for the six months to December 31 came in at £67.5m (€100.4m), compared to £67.4m (€100.3m) in the previous year.
Net fees grew by 8% to £198.7m (€295.6m) as a strong performance in its permanent replacement business offset the pressure on temporary fees.
During the first half of the year the company invested in increasing the number of its UK consultants by 7% to 2,826, and the group said that this increase, notably in the accountancy and finance sector, should see business improve in the second half of the year.
