(Reuters) - Britain-based Recruiter Hays (L:HAYS) declared a special dividend on Thursday after posting a 17 percent rise in full-year profit and building a cash surplus, helped by growth in continental Europe, while hiring in Britain steadied.
The firm, which places workers areas such as finance and IT, had said in 2015 it would consider a special dividend as it paid off debts and built a cash surplus. Hays said it ended 2016 with a net cash position of 111.6 million pounds.
"As a result of our strong financial and cash performance and a confident outlook, we have proposed the payment of the group's first special dividend of 61.6 million pounds," Chief Executive Alistair Cox said in a statement.
Hays reported a full-year operating profit to 211.5 million pounds in the year ending in June, in line with its July estimate of 209.5 million. It had reported profit of 181 million pounds a year ago.
Earnings were supported by a record performance in Germany, its largest market, while Australia had seen strong growth, the company said.
Hays said activity in the British hiring market had steadied after slipping in the immediate aftermath of Britain's 2016 vote to leave the European Union, resulting in the company exiting the year with modest private sector growth.
Public sector hiring in the UK was challenging, it added.
British staffing firms, which faced uncertainty after the Brexit vote, have offset the impact with growth in their international businesses.
"We continue to see strong overall net fee growth across our international businesses ... Conditions in the UK are overall broadly stable," the company said in a statement.
Hays declared a special dividend of 4.25 pence per share, even as it proposed a 11 percent increase in full-year dividend to 3.22 pence, taking its total dividend payouts to 108.3 million pounds.