The largest recruitment firm of Britain, Hays PLC, reported on Thursday a fall of 37 per cent in net fees for the fiscal first quarter of the year.

Hays said that net fees from the permanent placement business plunged by 52 per cent, while net fees from the temporary placement business fell by 27 per cent in the quarter ended September versus a year earlier.

In the private sector business, Hays suffered a fall of 47 per cent in net fees, while net fees from its public sector business slipped by 13 per cent.

The recruitment firm blamed the tough market conditions for the fall in its net fees.

In addition, Hays said it was hit by the £30.4 million fine slapped by the Office of Fair Trading.

Earlier in September, Britain's consumer watchdog, the FSA, had fined Hays for price fixing.

Hays said it would appeal the decision of the OFT and that would take a £25 million exceptional charge.

Shares in Hays were trading at 104 pence, losing 2 pence in the recent trading.