Hays notes structural long-term growth chances, but also challenges

Hays PLC on Friday said that it believed an ongoing macroeconomic uncertainty will be persistent through its current financial year that ends in late June 2026, while noting structural growth opportunities.

The London-based staffing firm said net fees were down 8% on-year in the first quarter ended September 30, on an actual and like-for-like basis, with Temp & Contracting fees down 5% and Permanent fees down 13%.

Temp & Contracting volumes ‘have rebuilt through the quarter in line with prior years’ but Permanent markets ‘remain challenging’, Hays said.

Hays noted September net fee growth was also minus 8% on a working day adjusted basis, and it continues to expect near-term market conditions to remain challenging.

It added, however, that initiatives to deliver further structural cost savings of about £45 million per year by the end of financial 2029 are progressing well: its periodic cost base has improved to about £74 million from about £75 million in the fourth quarter. Pre-exceptional operating profit was ‘broadly stable’ and ‘in line with our expectations’.

Looking ahead, Hays said: ‘In many of our global markets, the vast majority of professional and skilled recruitment is still done in-house, with minimal outsourcing to recruitment agencies, which presents substantial long-term structural growth opportunities.’

It added: ‘In addition, we will continue to structurally reduce our cost base, to position Hays strongly for when end markets recover.’

Hays shares rose 3.3% to 59.55 pence each on Friday morning in London.

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