(Reuters) - Recruiter Hays (L:HAYS) operating profit fell by just under a fifth in the first half, with fee revenue as expected taking a hit from a weak German economy and the company also citing disruption from December's Australian bushfires and political events in Britain and France.
Hays, which operates in 33 countries, said on Thursday operating profit fell to 100.1 million pounds for the six months to December 31, from 124.1 million pounds a year earlier.
It had warned in January that first-half 2020 operating profit would be around 100 million pounds ($130.36 million).
The company said strikes in France, the fires in Australia and the UK General Election had significantly impacted trading in December and that it had seen a "marginally slower" start to 2020 than previous years.
Recruiters around the globe have been hammered by a range of political and economic uncertainties over the past year.
Germany, Hays' largest market, saw a fall of 5% in net fees in the first six months of its financial year as business confidence remained subdued and companies reined in costs and deterred hiring, particularly in the manufacturing, automotive and financial sector.
Peers PageGroup (L:PAGE) and Robert Walters (L:RWA) also had a tough end to the calendar year, with weakness in hiring seen in similar markets including China, UK and France.
Hays said its net fees fell to 553.1 million pounds ($712.78 million), from 568 million pounds a year ago.
"We expect near-term macro conditions to remain difficult and are mindful of continuing uncertainties, including the coronavirus," Chief Executive Officer Alistair Cox said.