Recruitment firm Hays plc has issued its earnings results and reported an increase in annual profit of 128%.
However, as of the time of writing the Hays Plc stock price (HAS.L) had dipped to a more reserved 2.3% increase to level out at 117.70p.
Revenues for the financial year ending June 2022 rose 32% on a like-for-like basis to £1.19 billion.
This was an increase in the company's pre-pandemic revenue of £1.13 billion in 2019.
The company's operating profits rose by 128% to £210 million. This figure was at the top of the company’s forecast range for annual profit.
Income for the recruitment firm is generated via the fees that Hays takes when they successfully place a candidate in a role with a client.
Fees accelerated from £565 million in the first half to £624 million in the second half of the company year, with March 2022 being a record month.
The company has operations across the globe, with the business in Germany taking 26% of the net fees and 35% of the total operating income.
The German arm of the multinational thus contributed the lion's share of the profit growth, registering 152% organic growth.
Hays' UK and Ireland operations accounted for 22% of fees and 21% of operating profits.
And, after suffering amid the subsequent lockdowns of the coronavirus pandemic, the company's profits in the UK and Ireland rebounded by 277%.
The company saw their fee collection increase by 24% in Australia and New Zealand, and 36% in the rest of the world.
Hays CEO Alistair Cox released a statement that said: “Performance in all regions was excellent. Our actions to capitalise on long-term structural opportunities, acute skill shortages and strong markets, supported by our ability to increase fee margins and the benefits of wage inflation, delivered record Group fees, 24 country records and 128% operating profit growth.
"Germany, our largest business, was the biggest absolute contributor to our profit growth, while the UK&I and RoW divisions delivered strong profit recoveries."
Cox referred to the stern macroeconomic headwinds that the company must now battle through to ensure it stays at its current operating levels.
He added: “With macroeconomic uncertainties increasing, we are closely monitoring our activity levels and KPIs, which remain broadly stable overall at strong levels. Our focus is now on leveraging the investments we have made and increasing our already strong consultant productivity.”
“We have a clear strategy to continually build market-leading positions in the most attractive structural growth markets, which are characterised by ongoing skill shortages. Our global network, financial strength and highly experienced management teams give me confidence that we can navigate current uncertainties and remain highly focused on delivering our long-term objectives.”
Hays plc is a British multinational company providing recruitment and human resources services across 33 countries globally.
Watch: Inflation: UK government could do more to tackle issue, says market analyst