Hays delivers investors a summer surprise after dividend hike
UK recruitment giant Hays put a smile on investors’ faces at the opening bell this morning, after hiking its full-year dividend by 18 per cent.
Annual profits leapt to £243m in the first half of 2018, rising 15 per cent from the same period in the previous year.
The FTSE 250 firm revealed a special dividend of 5p a share, or £72.9mm, on the back of the results, which were largely bolstered by growth throughout international markets.
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Shares edged down slightly in early morning trading.
"The company had a ‘landmark year’ as it achieved its target of exceeding £1bn revenue in 2018, and that target was set out in 2013," according to David Madden, market analyst at CMC Markets.
Madden added: "The UK business remains uncertain, but stable, and the rest of the world is powering ahead as it saw profit growth of 51 per cent. Hays confirmed it is seeing strong growth in its international business."
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Last month the recruitment firm lifted its full-year profit expectations after witnessing like-for-like growth in almost all of its foreign markets, despite fears that ongoing Brexit uncertainty might dent profit margins closer to home.
"We further strengthened our leading positions in key markets like Australia and Germany, and our UK business delivered a good profit performance, despite macro uncertainty," chief executive Alistair Cox said in a statement.
Lee Wild, Equity analyst from ii, said: "The numbers impress almost everywhere you look. There was strong growth in net fees across the board with records in 22 countries, although it’s the overseas operations that have really taken off. Japan, Hong Kong and China were the driving force behind 51 per cent profit growth at the Rest of World division. Brexit and fears around the economy are clearly affecting the UK, but even here there was modest growth in both net fees and profit."
Wild added: "This year may not be a one-off either judging by the optimistic tone. Conditions in nearly all its markets remain positive and there is still plenty to go for, especially in Germany, France and the US."