16th Apr 2025 10:59
(Alliance News) - Hays PLC on Wednesday said it expects full-year profit to meet market expectations despite continued weakness in hiring activity during its third quarter, which pushed the recruiter into a net debt position.
The London-based staffing firm reported a 11% decline in group net fees in the three months ended March 31, with permanent recruitment down 14% and temporary and contracting fees falling 6%.
The UK & Ireland and Australia & New Zealand saw the steepest drops, with net fees down 13% and 14% respectively, while Germany fell 11% and the Rest of World division dipped 9%. Permanent hiring remained under pressure across all regions, reflecting slower decision-making and longer time to hire.
Group operating profit for financial 2025 is expected to be in line with consensus at GBP56.9 million, Hays said, citing strong performance with large enterprise clients and improving consultant productivity.
Hays' financial year is due to end on June 30.
Chief Executive Dirk Hahn said trading conditions remained challenging, particularly in permanent recruitment, but noted sequential stability in activity and growth of 10% in fees from large enterprise accounts.
The company trimmed consultant headcount by 5% in the quarter and by 13% year-on-year, with cost-saving efforts reducing the periodic cost base to around GBP76 million from GBP77 million in the previous quarter.
Hays ended the quarter with around GBP30 million in net debt, compared with GBP29.0 million net cash at December 31, citing seasonal outflows and payment timing. It expects to return to a modest net cash position by year-end.
Hahn added: "We are structurally improving Hays and I remain confident that we will benefit materially when markets recover."
Shares in Hays were up 0.2% at 70.00 pence on Wednesday morning in London.
By Eva Castanedo, Alliance News reporter
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