Hays (HAS) Q2 2026 TU earnings summary

Executive summary

• Group net fees declined 10% year-on-year in Q2 2026, with TEMP and contracting down 8% and PERM down 14%.

• Pre-exceptional operating profit for H1 expected to be around GBP 20 million, in line with consensus, despite lower net fees.

• Consultant net fee productivity grew 6% year-on-year, with headcount reduced by 1% in the quarter and 15% year-on-year.

• Structural cost savings of GBP 15 million annualised secured in H1 2026, with a target of GBP 45 million per annum by FY 2029.

• Net cash position at GBP 40 million at quarter end, reversing a net debt position from September 2025.

Financial highlights

• TEMP and contracting volumes decreased 7% year-on-year; PERM volumes down 14%.

• Net cash position at GBP 40 million, reflecting seasonal inflows and expected payment timing.

• Dividends paid of GBP 4.6 million and GBP 1.2 million in share purchases for employee incentives.

• DSOs maintained at 37 days.

• Exceptional restructuring charge of approximately GBP 10 million expected in H1 2026.

Outlook and guidance

• Consultant headcount expected to remain broadly stable in Q3 and H2, with ongoing cost base reduction and focus on high-performing business lines.

• Macro uncertainty and reduced hours in Germany are key sensitivities for H2; return to work post-holidays is critical.

• Full-year consensus operating profit at GBP 48.5 million, requiring a stronger H2.

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