FTSE 250 movers: Hays on the rise; NCC hit by Berenberg downgrade

(Sharecast News) - FTSE 250: 19,945.27, -0.68% at 1445 GMT. UK recruitment agency Hays said second-quarter net fees increased as demand for temporary and contract jobs grew faster than for permanent posts for the first time in seven quarters.

The company on Tuesday said like-for-like net fees in the second quarter to December 31 grew by 8%, with temporary segment jumping 9%.

"Growth was a result of our actions to increase fee margins and our focus on the most in-demand markets, supported by overall wage inflation," said chief executive Alistair Cox.

He also said the company's forward-looking client and candidate activity saw modest reductions in its permanent segment in several markets as client and candidate uncertainties increased.

"That said, our key markets continue to be characterised by acute skill shortages and wage inflation, and we are focused on further increasing fee margins while closely managing our overheads," Cox added.

Hays' peers PageGroup and Robert Walters last week slashed their outlook and warned that annual profits will be hit by macroeconomic challenges and their China exposure as the global economy braces for a slowdown amid soaring inflation and a cost of living crisis.

Hays, which has a workforce of about 13,000 employees and operates across 33 countries, maintained first-half operating profit guidance of £95-97m.

NCC Group shares tumbled as Berenberg downgraded to 'hold' from 'buy' as the company said it expected to be only slightly ahead of the previous year's operating profits for H1 2023.

"We think there is a lot of ground to cover in H2 to perform at least in line with consensus forecasts. Additionally, higher interest expenses put earnings for the year at significant risk. Given the difficult macro backdrop, we think there could be further headwinds ahead. We downgrade NCC to Hold while we eagerly await the new CEO's strategic update on 2 February," the broker said.

Quilter shares fell after a downgrade to 'underweight' at JPMorgan for the wealth manager.

Shares in asset manager Investec fell on the back of flat assets under management at its demerged company Ninety One.

Royal Mail owner International Distribution Services fell again in the wake of a cyber attack that has crippled its overseas post and parcel operations, and unions warned of more strikes to come over pay.

FTSE 250 - Risers

TUI AG Reg Shs (DI) (TUI) 182.55p 3.75% Clarkson (CKN) 3,105.00p 3.50% Hays (HAS) 122.50p 2.94% Softcat (SCT) 1,244.00p 2.22% W.A.G Payment Solutions (WPS) 80.00p 2.17% Tullow Oil (TLW) 39.16p 1.87% Indivior (INDV) 1,973.00p 1.60% Digital 9 Infrastructure NPV (DGI9) 93.00p 1.53% QinetiQ Group (QQ.) 345.80p 1.53% SSP Group (SSPG) 255.20p 1.43%

FTSE 250 - Fallers

NCC Group (NCC) 194.80p -5.89% Ascential (ASCL) 211.20p -5.71% ASOS (ASC) 742.50p -5.23% Volution Group (FAN) 382.50p -4.97% Investec (INVP) 512.00p -4.55% Currys (CURY) 62.30p -4.52% Carnival (CCL) 765.80p -4.25% BH Macro Ltd. GBP Shares (BHMG) 4,455.00p -4.19% International Distributions Services (IDS) 221.50p -3.78% 4Imprint Group (FOUR) 4,460.00p -3.57%