Recruitment company Hays has produced a mixed performance in the third quarter against an uncertain economic backdrop.

Although markets were stable, overall group net fees were down 1% against the prior year. Net fees decreased 9% in the UK & Ireland, the international business delivered growth of 3% and represented 70% of net fees in the quarter, driven by an excellent performance in Germany, which grew by 25%.

Net debt ended the quarter slightly higher at around £140m compared to £133m a year earlier, primarily due to the timing of late tax payments.

Still, on the bright side, Hays has completed the refinancing of a new five-year, £300m revolving credit facility to October 2017 at interest rates similar to the last deal.

The covenants, which are unchanged on the group's existing facility, require the group's interest cover ratio to be at least 4:1. Its leverage ratio (net debt to earnings before interest, tax,depreciation and amortisation) must be no greater than 2.5:1.

CM

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