RECRUITMENT firm Hays said most of its markets showed a second-half recovery, but the UK still lags behind.

Announcing its final results for the year to June 30, it revealed a 5% like-for-like increase in turnover of £2.69bn, but like-for-like net fees dropped 21% to £557.7m and pre-tax profits before exceptional costs fell 53% to £71.1m.

Exceptionals of £41.4m were due to restructuring costs and a £30.4m fine by the Office of Fair Trading for allegedly breaching competition law, which the group is contesting.

But it reported a broad- based recovery in the second half, driven by an improvement in permanent placements compared with temporary jobs in most locations.

The group, which has two Liverpool offices on Dale Street and in Silkhouse Court, said 58% of its net fees were now generated outside the UK as part of diversification its strategy.

Chief executive Alistair Cox said: “After a tough first half to the year, we returned to growth in the second half, driven by excellent performances in Asia Pacific and Germany.”

He added: “The outlook across 90% of our markets, including the UK private sector, continues to improve.”

Liverpool stockbroker Panmure Gordon said the results “look ahead of consensus”.