Matchtech, Right4Staff up, Hays down as Asia Pacific falters
11 April 2013
Net fee income (NFI) at Hays fell by 3% in the quarter ending 31 March compared to the same quarter last year.
Thu, 11 Apr 2013Net fee income (NFI) at Hays fell by 3% in the quarter ending 31 March compared to the same quarter last year.
Asia Pacific, which represents 28% of the group’s NFI, saw a sharp decline, with NFI reduced by 14%.
However, there was a marked division across Hays’ Asia-Pacific division.
Whereas Hays’ Australian and New Zealand markets were hard hit with an 18% decrease, Asia saw a 14% increase.
Adrian Kearsey, equity analyst at Hardman & Co, tells Recruiter: “Hays is the most significant player in the Australian market, so what happens to the market happens to Hays. After a massive bubble the economy faltered and there has been a bit of a wobble.”
Mark Kingston, senior executive at Boxington Corporate Finance, tells Recruiter: “Returning growth in core Asian markets was masked by a particularly poor performance in Australia, where net fees fell by 18% year-on-year. Having enjoyed robust growth for the previous three years, many recruiters have increased their exposure to the Australian market. However, only time will tell whether growth in the market can be sustained over the medium term.”
Hays’ UK net fees were unchanged compared to the same period in 2012, following two years of decline.
Meanwhile, the chief executive officer of engineering and technical recruiter Matchtech tells Recruiter the company is in “a nice space” following the announcement of its results for the first half of 2013.
The company reported an 8% rise in NFI, with contract NFI up 14% growing particularly strongly.
Revenue was 12% higher at £197m, while profit before tax jumped by 25% to £4m.
Adrian Gunn says the results were based on growing demand for contractors, and the continuing strength of sectors in which Matchtech operates.
He says the growth in the company’s contract business was due to a combination of winning new contracts, such as UK Power Networks, and taking marketshare from competitors.
Finally, Gi Group Recruitment announced after-tax profits of £1.28m for 2012 on revenues of £147.4m. In 2011 the company made a profit of £116k. The company is part of Gi Group, an Italian multinational staffing group, since its acquisition two years ago.
Asia Pacific, which represents 28% of the group’s NFI, saw a sharp decline, with NFI reduced by 14%.
However, there was a marked division across Hays’ Asia-Pacific division.
Whereas Hays’ Australian and New Zealand markets were hard hit with an 18% decrease, Asia saw a 14% increase.
Adrian Kearsey, equity analyst at Hardman & Co, tells Recruiter: “Hays is the most significant player in the Australian market, so what happens to the market happens to Hays. After a massive bubble the economy faltered and there has been a bit of a wobble.”
Mark Kingston, senior executive at Boxington Corporate Finance, tells Recruiter: “Returning growth in core Asian markets was masked by a particularly poor performance in Australia, where net fees fell by 18% year-on-year. Having enjoyed robust growth for the previous three years, many recruiters have increased their exposure to the Australian market. However, only time will tell whether growth in the market can be sustained over the medium term.”
Hays’ UK net fees were unchanged compared to the same period in 2012, following two years of decline.
Meanwhile, the chief executive officer of engineering and technical recruiter Matchtech tells Recruiter the company is in “a nice space” following the announcement of its results for the first half of 2013.
The company reported an 8% rise in NFI, with contract NFI up 14% growing particularly strongly.
Revenue was 12% higher at £197m, while profit before tax jumped by 25% to £4m.
Adrian Gunn says the results were based on growing demand for contractors, and the continuing strength of sectors in which Matchtech operates.
He says the growth in the company’s contract business was due to a combination of winning new contracts, such as UK Power Networks, and taking marketshare from competitors.
Finally, Gi Group Recruitment announced after-tax profits of £1.28m for 2012 on revenues of £147.4m. In 2011 the company made a profit of £116k. The company is part of Gi Group, an Italian multinational staffing group, since its acquisition two years ago.
