Hays Reports Q1 Net Fee Decline Amid Challenging Market Conditions

Hays PLC shares are up around 2.2% on Friday despite the company announcing an 8% year-on-year (YoY) decrease in net fees for the quarter ended September 30, 2025 (Q1 26).

The decline is said to reflect ongoing macroeconomic uncertainty and challenging conditions, particularly in permanent placement markets.

Headline Numbers:

• Net Fees: Down 8% YoY on both actual and like-for-like (LFL) basis.
• Temp & Contracting: Net fees decreased by 5% YoY. Volumes are recovering seasonally.
• Permanent Placement: Net fees fell 13% YoY due to prolonged hiring times.
• Consultant Productivity: Increased 7% YoY, driven by strategic resource allocation.
• Consultant Headcount: Reduced by 4% sequentially and 15% YoY.
• Net Debt: Increased to £40m, compared to £37m net cash as of June 30, 2025, reflecting seasonal outflows.

Hays is actively managing its cost base, with initiatives underway to deliver structural cost savings of approximately £45 million per annum by the end of FY29. The company's periodic cost base has improved to roughly £74 million, down from approximately £75 million in Q4.

Despite overall declines, Hays experienced positive momentum with large Enterprise clients, delivering 4% YoY net fee growth in this segment. Several “Focus countries,” including Spain (up 27%), Italy (up 12%), and the USA (up 2%), demonstrated strong Temp & Contracting net fee performance.

CEO Dirk Hahn commented, “Despite ongoing macroeconomic uncertainty and challenging Perm conditions, we experienced a normal recovery in post-summer activity levels and trading was stable on a seasonally adjusted basis through the quarter. We continue to make significant strategic and operational progress”.

He further emphasized the importance of consultant net fee productivity and cost discipline in driving profit recovery.