Hays (HAS) H2 2026 earnings summary

Executive summary

• Introduced the Momentum strategy, focusing on specialist recruitment, technology enablement, and consultant-led service to drive market share and profitability.

• Net fees declined 8% year-over-year to £905.5m, with Permanent placements down 12% and Temporary & Contracting more resilient, down 5%.

• Operating profit before exceptional items rose 3% to £48.6m, exceeding prior guidance, driven by structural cost savings and improved consultant productivity.

• Consultant headcount was reduced by 12%, while net fee productivity increased by 7% for eleven consecutive quarters.

• £50m in annualised structural cost savings were secured three years ahead of schedule, with a further £50m targeted for FY27.

Financial highlights

• Net fees: £905.5m (down 8% YoY); Operating profit: £48.6m (up 3% YoY); Cash from operations: £92.0m.

• Basic EPS before exceptionals: 1.21p (down 8% YoY), impacted by a higher effective tax rate of 45.0%.

• Closing net cash: £20.1m; cash conversion rate: 189%.

• Free cash flow was £22m after exceptional restructuring charges and investments.

• Exceptional costs of £89.6m related to restructuring, property rationalisation, and country disposals.

Outlook and guidance

• Targeting £50m in additional structural cost savings in FY27, with further exceptional charges expected.

• Medium-term ambition: net fees north of £1bn and a 25%+ conversion rate, implying £250m+ operating profit.

• Trading in July and August in line with Q4; September is a key month for activity assessment.

• Consultant headcount expected to remain broadly stable in Q1 FY27.

• CapEx expected in the £30–35m range for FY27 to support technology investments.