Hays (HAS) Q3 2025 TU earnings summary

Executive summary

• Group net fees declined 9% year-over-year, with temp and contracting down 6% and perm down 14%.

• Consultant net fee productivity increased by 5% year-over-year, with headcount reduced by 5% in the quarter and 13% year-over-year.

• Cost-saving initiatives are progressing, targeting GBP 30 million annual savings by FY2027, with the cost base improved to approximately £76m.

• Large enterprise clients delivered 10% net fee growth, with 31 new client wins and improved contract renewals.

• Net debt stood at GBP 30 million at quarter end, reflecting seasonal outflows and a GBP 5 million cash exceptional impact.

Financial highlights

• Actual net fees decreased 11% year-over-year, impacted by currency movements.

• Temp and contracting volumes decreased by 7% year-on-year; Germany down 10%, ANZ down 12%, UK & Ireland down 10%, Rest of World up 6%.

• Perm net fees decreased by 14%, with volumes down 19%, partially offset by a 5% increase in average perm fee.

• March net fee growth rate was minus 7% working day adjusted.

• DSOs maintained at 37 days; expectation to return to modest net cash in Q4.

Outlook and guidance

• Market conditions expected to remain challenging, especially in perm, with resilience in temp and contracting, likely persisting into FY 2026.

• FY25 operating profit anticipated to be in line with consensus of £56.9m.

• Consultant headcount expected to remain broadly stable in Q4; further cost efficiencies planned.

• Q4 net fee growth to be negatively impacted by circa 1% due to Easter timing.

• Anticipated GBP 15-20 million exceptional P&L charge in H2 2025 due to restructuring and transformation.