Tech sector recruiting in London now above pre-Covid levels, Hays boss reveals

Recruitment in London’s tech sector has risen above pre-pandemic levels and represents a key opportunity for the UK’s economic recovery, according to the boss of white-collar recruitment giant Hays.

Alistair Cox, who has headed up the FTSE 250 firm since 2007, said: “Investments in areas such as technology, life sciences and the green economy represent an amazing opportunity for us going forward as new skillsets are required.

“Our technology business in London is now operating above pre-Covid levels.”

It comes as sector leaders including Tech Nation chair Stephen Kelly say there are multiple signs 2021 will be “a golden year for UK tech”.

A host of online firms are executing listings in London after seeing demand soar during the pandemic.

Moonpig just made its £1.2 billion stock market debut, doorstep vino delivery firm Virgin Wines this week announced plans to float on AIM valued at an estimated £100million, online auction platform owner ATG will float on Tuesday with an offer price estimating its market cap at £600 million, and Deliveroo is set to reveal plans for its long-anticipated London float on March 8.

Cyber security firm Darktrace is also expected to float. Today a DCMS Annual Cyber Sector Report revealed that 2020 saw new highs for Britain's £8.9 billion cyber security sector, which now employs nearly 50,000 people after seeing a 9% rise in jobs created despite the pandemic.

The Government is hoping tech floats will help drive Britain’s recovery, and has said it is reviewing the rules for companies listing here to make it possible for founders to retain a “golden share” blocking unwanted takeovers.

Cox spoke as Hays revealed that in the six months to January it saw pre-tax profits plunge by 78% on the same period in 2019, to £21.1 million. Net fee income came in at £422.8 million — a drop of 24%. The company recorded a £1 million operating loss in the UK as the pandemic “hit hard”.

But the firm, which completed an £196 million share sale in April last year, ended the half with net cash of £379.5 million. It is to both resume core dividends in August, and return £150 million in surplus capital to shareholders in phases via special dividends.

Hays went through a restructuring in the period that cut group headcount by 14%. Cox said that he is back on his own recruitment drive, however, and plans to increase headcount by 2-4% in third quarter.