Hays PLC on Thursday said net fees remained under pressure in the first three months of the year although the downturn was a touch better than feared by City analysts.
Shares in the London-based staffing provider rose 5.2% to 33.82 pence each in London on Thursday but have fallen 52% in the last 12 months.
Net fees fell 7% in the three months to March, the third quarter of Hays’ financial year, or by 8% like-for-like. The slowdown was better than the 9% drop forecast by consensus cited by RBC Capital Markets.
On a LFL basis, net fees fell 11% in Germany, 10% in UK & Ireland, 2% in Australia & New Zealand and by 6% in Rest of World.
Temporary & contracting fees dipped 6% and permanent placements 12%.
March net fee growth rate of minus 8% was in line with the quarter.
Hays said it expects near term market conditions to remain challenging, with greater resilience in Temp & Contracting than in Permanent.
Pre-exceptional operating profit is expected to be in line with market consensus expectations of £45.2 million, little changed from £45.6 million reported in the year to June 2025.
Hays reported continued ‘strong progress’ with its structural cost savings programme with a further around £15 million per annum savings delivered in the quarter.
It has now achieved £30 million per annum savings in financial 2026, progressing towards its target of £45 million per annum by financial 2029.
As a result of the acceleration of the cost programme, Hays expects to incur an increased exceptional restructuring charge in the second half of the financial year.
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