British recruitment firm Hays expects annual profits to meet market expectations but said wider global economic problems were starting to affect parts of its UK business.
Hays, which generates around half its fees from the UK and Ireland, grew total net fees by 16 per cent in the quarter ended June 30th. The group's international business, which now represents 44 per cent of fees, delivered 35 percent of organic growth in the quarter, Hays said.
Despite the fee growth, Hays said it was seeing signs that wider global economic issues were starting to affect its permanent placement markets, particularly in the UK.
As such, Hays said its focus in the UK for the year ahead would be on cost control, maximising productivity and working capital management.
"Demand in City related activities and legal remained subdued, and construction & property, representing 25 percent of our United Kingdom & Ireland business, had a difficult quarter reflecting the slowdown in construction activity," said Hays in a trading statement today.
The group said it was well positioned to deal with the more difficult economic backdrop some countries are experiencing and hopes to "take advantage of the full growth potential in countries with stronger economies".
The company increased like-for-like net fees in continental Europe and the rest of the world by 46 per cent, while Asia Pacific saw growth of 26 per cent on a like-for-like basis. Australia, Italy, the United Arab Emirates and Brazil performed particularly well, said the group.