Hays, a major global recruiter, has recently unveiled their quarterly growth - much to market disappointment. A slow-down in the German economy following trade disputes between Beijing and Washington may be to blame.
In February, the staffing company had flagged a lower level of contractor extensions in Germany, reducing its overall growth rate, as Europe’s largest economy reported its weakest growth rate in five years.
Hays, which is focused on white collar jobs, reported a 6 percent rise in net fees for the third quarter through March, against 10 percent a year earlier and a consensus expectation of 7 percent, according to Liberum analysts.
Shares in the company, which had hit a five-month high of 163.5 pence on Monday, were down 3.9 percent at 156.7p by 0807 GMT, making them the second biggest losers on London’s midcap index.
Hays, which places workers in areas such as finance and construction, said net fees from Germany rose 5 percent in the three months ended March.
“We’re doing all the appropriate things to continue to drive profitability in Germany,” Chief Financial Officer Paul Venables told Reuters. “We are just starting to see in the manufacturing and automotive space slightly less investments from our clients.”
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