No hiring freeze as Hays shakes off Brexit worries
HAYS is the latest recruitment firm to put out a reassuring update showing that the Brexit vote hasn’t put a total freeze on hiring.
It said that while companies were cautious and larger firms were controlling costs, hiring had stabilised since July and the market ‘may well have’ already seen the worst.
Net fees from the UK part of its business fell 10pc in the three months to September 30. But they grew 30pc and 33pc respectively in its Asia Pacific business and its combined Continental Europe and Rest of the World region.
Chief executive Alistair Cox said the business had seen all-time records in Germany and France, and a pick-up in growth in Australia. The group now operates across 33 countries, and said 19 of them grew more than 10pc.
Overall fees from temporary placements climbed 19pc, and permanent ones rose 14pc.
UBS said the results were better than it had hoped for. The broker had predicted UK fees would decline 12pc over the quarter; Barclays had predicted a 15pc decline. UBS added that with 73pc of the firm’s fees coming from outside Britain, the weak pound would also provide a profit boost. Shares climbed 2.9pc, or 3.9p, to 139.3p.
The FTSE 100 gained 0.8pc, or 52.51 points, to close bang on 7000 for the day. Retailers rallied, despite fears that rising inflation could impact on bottom lines and reduce consumer spending.
Next was the highest riser, advancing 5.3pc, or 240p, to 4744p, while Marks & Spencer was up 4.3pc, or 13.8p, to 333.7p. Burberry bucked the trend, however, after sales slipped in Asia. Shares were off 7.2pc, or 109p, to 1403p.
Accesso Technology provides ticketing systems for the leisure industry. Yesterday it announced it had won a three-year contract to provide a virtual queuing solution for the Wet’n’Wild water park in Sydney. Accesso’s LoQueue system uses waterproof wristbands which are given to guests at theme parks and holds their place in line for a particular ride or attraction. The device has a countdown display on it, so the visitor knows when it is their turn to go on the ride.
The system, which is already in use at the Wet’n’Wild park in Las Vegas, will be used at nine attractions in the Sydney park.
Accesso said the move highlighted its increasing focus on the Asia Pacific region. Shares surged 1.9pc, or 30p, to 1650p.
Gear4music, an online musical instrument retailer, rocketed yesterday as it reported a 73pc increase in revenues to £21.6m in the six months to August 31, up from £12.5m in the same period a year ago. Gross profit climbed from £3.3m to £5.7m in that time.
The UK-based business had previously reported a surge in sales from Europeans looking to snap up a bargain as the euro strengthened against the pound. Indeed, European sales soared 169pc in the first half of the year. The firm said the number of active customers had climbed 45pc and it now has an email subscriber database of more than 600,000.
Chief executive Andrew Wass said strong European sales had reinforced the group’s decision to expand its distribution capacity in the region. A Swedish distribution centre is on track to be operational this November, and it has signed a lease on a German distribution site. It is also set to add more shipping destinations worldwide.
With sales typically higher in the second half of the year, Wass said the group was well placed for the Christmas trading period. Panmure Gordon doubled its target price for the stock to 400p, calling the company a leader in its niche. Shares gained 14.7pc, or 46.5p, to 362.5p.
Pharma firm Clinigen climbed as it announced the launch of a Japanese business. The group, which operates clinical trials, wants to strengthen its presence in Asia.
Clinigen said Japan was an important market for its Foscavir product, which treats a viral infection of the retina, with more than 2,000 patients treated for the condition each year. Shares advanced 1.6pc, or 12p, to 762p.