Hays warns over Russia exit costs, but cheers record start to 2022

Recruiter Hays has hailed a record performance at the start of 2022 amid a shortage of skills worldwide, but revealed a hit of around £5 million after pulling out of Russia.

The group posted a 32% surge 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 rose 29%, it added.

Hays said the closure early last month of its offices in Russia due to the invasion of Ukraine will result in about £5 million in one-off costs.

The sites in Moscow and St Petersburg accounted in half-year results for around £5.9 million in group fees and about 1% or £800,000 of company earnings.

Full-year guidance remains for full-year operating profits of £210 million to £215 million, excluding the Russia hit.

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

Alistair Cox, chief executive of Hays, 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% since the end of last year – up 27% year-on-year – and expects to add up to another 3% 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% – 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% of group net fees – saw third-quarter performance led by permanent jobs recruitment, up 59%, while temporary hiring fees rose 13%.

The North West and the South East had stand-out fee growth of 49% and 41% respectively, while Ireland enjoyed a 61% surge.

London – its largest region – increased by 28%, including London City up 57%.