Hays (HAS) H2 2025 earnings summary

Executive summary

• Global recruitment markets remained unsupportive for a third consecutive year, with economic and political uncertainty impacting both client and candidate confidence, especially in permanent recruitment.

• Net fees declined 11% year-over-year to GBP 972.4 million, with both Temp & Contracting and Perm segments affected by challenging conditions.

• Pre-exceptional operating profit fell 56% to GBP 45.6 million, driven by lower volumes and significant restructuring costs.

• Structural cost savings of GBP 65 million per annum were secured since the start of the last fiscal year, exceeding targets two years ahead of schedule.

• Strong cash generation with 281% cash conversion and a year-end cash position of GBP 37 million.

Financial highlights

• Net fees decreased by 11% to GBP 972.4 million year-over-year; turnover fell 4%.

• Pre-exceptional operating profit dropped 56% to GBP 45.6 million; pre-exceptional EPS was GBP 0.0131, down 67%.

• Cash from operations rose 14% to GBP 128.3 million, with a year-end cash position of GBP 37 million.

• Free cash flow was GBP 78.2 million; working capital inflow was GBP 58.1 million.

• Final dividend proposed at GBP 0.0029 per share, with full-year dividend at GBP 0.0124 per share, covered 3x by pre-exceptional earnings.

Outlook and guidance

• July and August trading in line with expectations; September trends too early to assess.

• Consultant headcount expected to remain broadly stable in Q1 FY 2026; further cost base reductions planned.

• No material working day effects anticipated in H1 or full year FY 2026.

• EMEA expected to return to profitability in FY 2026, with France as a key focus for turnaround.

• Significant scope for net fee and profit growth when markets recover.