Hays' profits up but fears for German market grow
Recruitment firm Hays generated higher profits in the first half, but fears of slower growth in Germany spooked investors.
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Pre-tax profits rose 8% to £122.6m in the six months to December 31.
Net fees reached £568m, up 9% on a like-for-like basis with 20 countries delivering record levels.
In Germany the company had a record half as net fees rose 14%.
But Hays indicated that growth could be more modest in the country, which is its largest market, amid an economic slowdown. Slightly lower levels of contractor extensions have already slightly reduced the overall growth rate.
Shares in the company dipped 7% yesterday as investors adjusted expectations for the full year.
Analysts at Liberum said estimates for the 2019 financial year were likely to be trimmed by between 2% and 3%.
In the UK growth remained solid despite economic uncertainty.