Hays Share Price Falls 4% on a 46% Drop in Profit

Shares of Hays PLC (LON: HAS) are trading around 4% lower in London today after the recruiter said its operating profit nearly halved for the quarter ending June 30

As a consequence, Hays has been forced to cut costs by 21% through staff furloughs, salary, and working hours cuts. 

“The pandemic has severely impacted all our markets globally. As it developed, our priority was to look after all our people and to support our business as it adjusted immediately to new realities,” said Alistair Cox, CEO.

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Hays said it expects operating profit before exceptional items to come around £130 million to £135 million for the year ending June 30. This is 46% lower compared to last year’s £248 million. 

“With our strongest ever balance sheet and market leading positions in key businesses, we are confident we can take further market share and will invest in organic opportunities to accelerate our return to growth,” Cox added. 

The recruiting giant noted that its business performed better in Australia, New Zealand, the USA, and Asia, while the UK and Germany lagged.  

Hays share price is trading around 4% in the red at 121p.

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