Investors pile in as jobs boom boosts recruiters

STELLAR results from rounded off a strong week for Britain’s leading recruitment companies as they bounced back from a post-Brexit lull. Hays

Hays forecasted full-year profits at the top end of market expectations, reporting record fee growth of 21pc in the first quarter.

However while fees across its international businesses rose 34pc, they dropped 4pc in UK and Ireland, which account for around a quarter of total business.

But group finance director Paul Venables said the UK performance was a marked improvement on the second half of last year.

Following a late 12p price target upgrade by Morgan Stanley to 157p, shares finished up 1.3pc, or 2.1p, at 170.3p.

Rival PageGroup reported record first- quarter profits and noted a less-than- savoury performance in the UK due to Brexitrelated uncertainty.

But headhunter Robert Walters was far more bullish earlier in the week when it reported a 27pc increase in UK recruitment activity in its first quarter. The firm saw a 50pc jump in demand from banks and other financial firms.

Both firms finished the short business week on a high note, with Robert Walters up 1.8pc, or 8p to 460p, while Page was 3.1pc, or 14.9p, to 490.3p after Numis raised its target price to 540p from 400p.

But the cheer was not shared by all, with engineering and tech headhunter Gattaca losing £7.9m of its value after cutting profit expectations for the year by 10pc to 15pc. The company put the retreat down to a post-Brexit slowdown and several one- off back- office costs hanging over from its 2015 acquisition of fellow hiring firm Networkers. Shares sank 8.5pc, or 25.38p, to 274p.

The FTSE fell 0.3pc, or 21.40 points, to 7327.59 with Mediclinic among the biggest risers, jumping 3.1pc, or 23p, to 759.5p.

The private healthcare provider said trading for the year to March 31, 2017 has been in line with expectations across its entire business bar the Middle East. Despite strong performance from its Dubai operations, regulatory issues in Abu Dhabi sent overall Middle East revenues down by 8pc.

Meanwhile, an upgrade to ‘buy’ from ‘hold’ by analysts at Jefferies lifted Primark-owner Associated

British Foods to the very top of the index.

Analysts also raised the firm’s price target to 3100p from 2450p, noting strong sugar prices. That pushed ABF to its highest price since December and shares rose 3.6pc, or 94p, to 2709p.

But a Jefferies downgrade placed bill payments firm PayPoint among the biggest fallers in the FTSE 250. Analysts cut the firm’s price target by 50p to 1200p, despite a ‘buy’ rating and shares dropped 2.7pc, or 29p, to 1059p. It also cut homeware company

Dunelm’s target price to 515p from 650p following middling results earlier this week. The firm fell 0.5pc, or 3p, to 599.5p.

A non-executive director upped his stake in cancer treatment firm

Advanced Oncotherapy, to improve investor confidence.

It is developing cancer treatment which makes radiotherapy less toxic for patients.

Dr Enrico Vanni purchased 100,000 shares at 27.5p, bringing his total stake in the company to 1.4pc of its issued share capital.

Last week, he bought a further 25,000 shares at 29.3p and 75,000 shares at 28.7p. Despite his efforts, shares fell 3.6pc, or 1p, to 26.5p.

Steppe Cement came unstuck after a 35pc decline in its cement output in the first quarter from the same period last year. Shares sank 8.8pc, or 1.5p, to 15.5p.