Hays (HAS) H1 2026 earnings summary

Executive summary

• Net fees declined 9% year-over-year to GBP 453.3 million, with challenging conditions in permanent recruitment and more resilient performance in temporary and contracting segments.

• Pre-exceptional operating profit fell 25% to GBP 20.1 million; EPS dropped 43% to 0.46p, reflecting lower profits, higher finance charges, and a higher effective tax rate.

• Strategic focus on productivity, cost savings, and digital transformation delivered GBP 15 million annualised savings in H1, with cumulative structural savings of GBP 80 million since FY24.

• Strong cash generation with 217% cash conversion and closing net cash of GBP 40.3 million.

• Interim dividend set at 0.15p per share, reflecting a revised capital allocation framework.

Financial highlights

• Group net fees decreased by 9% year-over-year to GBP 453.3 million; temp and contracting down 7%, perm down 14%.

• Pre-exceptional operating profit fell 25% to GBP 20.1 million; pre-exceptional EPS down 43% to GBP 0.46.

• Turnover decreased by 3% to GBP 3,252.5 million; strong cash conversion generated GBP 43.7 million cash from operations.

• Ended the half with GBP 40.3 million net cash; free cash flow was GBP 16.9 million.

• Interim dividend of 0.15p per share, paid 23 April 2026.

Outlook and guidance

• Expect improved financial performance in H2, with consensus for FY operating profit at GBP 46 million.

• Temp and contracting volumes stable or modestly ahead in key markets; perm activity in line with expectations.

• Consultant headcount expected to remain broadly stable in Q3 as focus remains on productivity and targeted investment.

• No material working day impacts anticipated in Q3 and Q4.

• FY26 effective tax rate expected at ~45%; net finance charge for FY26 expected at ~GBP 13 million.