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Recruitment company Hays upgraded its outlook on profit after reporting a 39% rise in fees in the fourth quarter of its fiscal year following a sharp rebound in permanent placements.
The company said it now expect FY21 operating profit of about £95 million, ahead of market expectations of about £90.9 million.
Like-for-like net fees in temp and perm increased by 24% and 67% respectively.
'Our cost base at the end of the quarter increased to c.£71 million per period, primarily driven by the increase in consultant headcount, together with higher consultant commissions, which increased proportionately with the rise in net fees,' the company said.
'We enter FY22 with positive trading momentum and are significantly investing in headcount to capitalise on strong end markets and rising business confidence,' it added.