Hays Navigates Macroeconomic Headwinds, Delivers Resilient Performance

Hays PLC (HAS.L) reported a 10% year-over-year (YoY) decline in net fees for the quarter ended December 31, 2025 (Q2 26).

This reflects the ongoing challenges of macroeconomic uncertainty and specific regional weaknesses, particularly in Germany and the permanent recruitment sector. While overall numbers are down, strategic cost-saving measures and productivity gains have provided some offset, allowing the company to maintain profit expectations.

Revenue: Group net fees decreased by 10% YoY on a like-for-like basis and 9% on an actual basis. The difference is due to a weakening of sterling versus the Euro, partially offset by the closure of operations in Chile and Colombia.

Profit & Margins: The company expects pre-exceptional operating profit for the first half of FY26 to be approximately £20 million, in line with consensus expectations. This is supported by strong consultant fee productivity growth and cost discipline.

Cash & Balance Sheet: Hays reported approximately £40 million in net cash, a shift from a net debt position of £40 million as of September 30, 2025. This reflects seasonal inflows and the timing of month-end payments, aligning with company expectations.

The shift to a net cash position provides Hays with increased financial flexibility to navigate the current market conditions and invest in strategic initiatives. The company paid £4.6 million in dividends and purchased £1.2 million of shares for employee incentive schemes during the quarter, demonstrating a commitment to shareholder returns.

Dirk Hahn, Chief Executive Officer, commented: “Amidst ongoing macroeconomic uncertainty, challenging Perm conditions, and weaker average hours worked in Germany, we are executing well against our strategy and continue to make significant operational progress.”