Financial Trading Blog
Stock of the day 09/04/2015 – Hays PLC
The second of which, Hays, announces its latest interim management statement for the quarter ending 31st March 2015 on Friday.
The recruitment company, which operates in 33 countries worldwide, had a strong market performance from the start to 2013 to mid-2014 before it hit somewhat of a brick wall last July. However since mid-October the stock has continued the robust growth that had stalled in the middle of the year, starting 2015 at £1.45 compared to 2014’s opening price of £1.30. Hays hit its yearly low in the first week of New Year trading, reaching £1.41 before quickly resuming its steady climb. A relatively stable price throughout March, with the stock ping-ponging between £1.50 and £1.57 finally saw Hays breach the £1.60 mark at the start of April, reaching its 2015 high of £1.63 during Thursday’s trading.
(Source: IT-Finance.com 09/04/2015)
Worries surrounding the current currency conundrum will be the key issue for Hays in its upcoming statement; however, with recruitment rival Robert Walters still managing to post strong profits despite the weakened euro, the pressure it on for Hays to do the same. Like Robert Walters, Hays is likely to see growth in the UK support a slowdown in its global operations.
Hays will also want to continue the confidence it inspired following its half year performance report in February. The company saw net fees increase from £363.4 million to £383.0 million, alongside 22% growth in operating profit to £81.5 million with profit before tax seeing 24% growth to £77.3 million.
Looking ahead to the expected full year announcement in August, forecasts suggest a 5% rise in revenue to £3.86 billion alongside a 17% increase in adjusted net income to £106 million. Due to the overall bullish atmosphere surrounding both the UK jobs sector and Hays itself, the stock has a consensus rating of ‘buy’, including a recent upgrade by the Bank of America, and an average target price of £1.67.
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