By Mary de Wet
Hays PLC said the strengthening of the British pound curbed its reported net fees in the first quarter and is likely to remain a hindrance in the current fiscal year.
"Group net fees were up 41% on a like-for-like basis versus the prior year, a period which was significantly impacted by the pandemic. On an actual basis, net fees increased by 36%, with the significant strengthening of Sterling versus the Euro, Australian dollar and the US dollar reducing our reported net fees," the U.K. recruitment and office services company said Thursday.
"The strengthening of Sterling versus our main trading currencies of the Euro and Australian dollar, particularly versus the average exchange rates seen in H1 FY21, is a headwind to Group operating profit in FY22.
"If we re-translate FY21 profits of GBP95.1m at 11 October 2021 exchange rates (AUD1.8492 and EUR1.1774), operating profit would decline by c.GBP5 million, similar to the position at our preliminary results on 26 August 2021.
"As our operating profit increases significantly in FY22, FX movements are likely to have a much larger negative impact," Hays said.
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(END) Dow Jones Newswires