Hays profit dives amid uncertainty, headwinds for recruitment markets
Hays PLC on Thursday said it remained focused on long-term growth as it noted ongoing headwinds and challenging markets.
London-based recruitment company said pretax profit dived 67% to £9.1 million in the six months to December 31, from £27.6 million a year prior.
Net fees declined 15% to £496.0 million from £583.3 million.
Hays proposed an unchanged interim dividend of 0.95 pence per share.
Hays noted a 4% consultant fee productivity increase and structural cost savings initiatives, but added that it continued to face ‘considerable’ headwinds from economic conditions.
The company said perm job flow and activity levels are in line with pre-Christmas levels and remain tough in Europe, Middle East & Africa, UK & Ireland, and Germany. It highlighted that it was particularly tough in France.
‘We continue to see slower client and candidate decision-making, leading to a longer time-to-hire,’ Hays said.
Chief Executive Officer Dirk Hahn said: ‘Our key markets are being driven by powerful, supportive megatrends and remain characterised by significant talent shortages, which we help solve for our clients. When client and candidate confidence improves and the cycle recovers, I am confident we will deliver a healthy drop through of net fees to operating profit.’
Hays shares were flat at 73.05 pence each on Thursday morning in London.
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