UK recruitment firm posts £3m loss

The boss of British recruitment firm Hays today said there was still evidence that bankers were heading overseas as hiring in the sector fell around 10% and pushed its UK division to a £3m loss.

Chief executive Alistair Cox said the recruitment squeeze in the banking industry would persist for “some time” and had spread beyond the UK to markets such as Hong Kong as major players restructure their operations.

The recruiter’s results come as the banking industry faces pressure from all sides, as it battles with volatile markets, weak consumer confidence, increased regulatory heat and criticism over pay.

The slowdown, which was behind a 1% drop in private sector fees, which make up 78% of UK revenues, prompted Hays to close 12 UK outlets, cutting its total headcount by 4%, including a 2% drop in the number of consultants to 2,071.

However, the wider group was supported by a strong performance overseas, particularly in Germany, leading to a 21% increase in overall operating profit to £63.1 million.