Hays (HAS) H1 2025 earnings summary

Executive summary

• Net fees declined 13% year-over-year to £496.0m, with Temp & Contracting down 9% and Perm down 19% amid challenging macroeconomic and political conditions across all regions.

• Pre-exceptional operating profit fell 56% year-over-year to £25.5m, impacted by lower placement volumes, extended time-to-hire, and a conversion rate down 520bps to 5.1%.

• Strategic focus on five levers and cost reduction delivered £25m in annualized structural savings in H1 25, totaling £55m since FY24.

• Average consultant headcount reduced by 15–17% year-over-year, driving a 4% improvement in productivity.

• Strong cash conversion at 257%, with net cash of £29.0m and a refinanced £240m revolving credit facility.

Financial highlights

• Net fees: £496.0m, down 13% year-over-year; Temp & Contracting down 9%, Perm down 19%.

• Pre-exceptional operating profit: £25.5m, down 56% year-over-year; post-exceptional profit: £15.6m.

• Basic EPS (pre-exceptional): 0.81p, down 66% year-over-year; post-exceptional EPS: 0.19p, down 75%.

• Cash conversion: 257% with £29.0m closing net cash; free cash flow was £39.6m; net cash decreased by £27.8m.

• Operating costs reduced by 8% year-over-year, driven by lower headcount and cost control.

Outlook and guidance

• Temp & Contracting volumes in UK & Ireland and ANZ are in line with prior year; Germany modestly behind due to sector headwinds.

• Perm job flow remains tough in EMEA, UK & Ireland, and Germany, with longer time-to-hire and slow decision-making.

• Consultant headcount expected to remain broadly stable in Q3 25, with further structural cost efficiencies planned.

• Board proposed an unchanged interim dividend of 0.95p per share, covered 0.9x by pre-exceptional EPS.

• Easter timing expected to have a 1% positive impact on Q3 net fee growth and a 1% headwind in Q4.