(Reuters) - British recruiting firm Hays (L:HAYS) said it remained confident for the rest of its financial year after reporting a 3 percent rise in first-half net fees at constant currencies thanks to growth in Europe and Australia.
The company, which places workers in areas such as finance and IT, had seen the UK market stabilise after stumbling in the immediate aftermath of Britain's vote in June to leave the EU, Chief Executive Alistair Cox said in a statement.
Overall, net fees rose to 465.5 million pounds ($581.1 million) in the six months ended Dec. 31, up from 396.9 million a year earlier, Hays said in its trading update on Wednesday.
Cox said the UK private recruitment market showed signs of improvement towards the end of the first half and that continued into the second half.
However, net fees on a constant currency basis in the United Kingdom and Ireland were down 10 percent in the first half.
Staffing firms such as Hays, PageGroup (L:PAGE), SThree (L:STHR) and Robert Walters (L:RWA) are seen as gauges of wider economic health because people tend to switch jobs more often when confidence rises.
Although most British staffing companies have been hit by uncertainty following the Brexit vote, growth in their international businesses has more then offset the impact, allowing them to continue to report higher earnings.
The company said Germany, its largest and most profitable market, had a record first-half, with net fees up 10 percent at constant currencies.
Activity in Australia accelerated "significantly" over the six months, pushing net fees up 9 percent at constant currencies for the Australia and New Zealand market, it said.
First-half operating profit rose 16 percent to 100.1 million pounds. It was, however, down 1 percent at constant currencies.
Whilst trading remains robust, there is the potential for special dividends going forward, RBC Capital Markets analyst Andrew Brooke wrote in a client note.