Recruiter Hays has announced that it expects full-year operating profits to hit the top of its guidance range, sending shares to a four-month high on Friday. The London-based firm reported that cost controls and productivity improvements have helped offset ongoing weakness in the global recruitment sector.
Profit Outlook and Market Conditions
Hays said it anticipates delivering pre-exceptional operating profit at the top of the consensus range of £37 million to £46 million. The company highlighted that “actions to deliver strong, consultant net fee productivity growth and cost discipline continued to offset our lower net fees” in the first half of its fiscal year 2026.
Despite the positive profit outlook, Hays stressed that the jobs market remains “challenging,” with global economic uncertainty persisting. The firm expects market conditions to stay difficult in the near future and plans to maintain current headcount levels through the next quarter, following significant staff reductions over the past year.
Net Fee Performance
In the three months to the end of June, Hays reported a 4% decline in net fees, a slowdown from previous quarters. The improvement was partly driven by stronger performance in its temp and contracting business. However, net fees in the UK and Ireland dropped 8% year-on-year.
Chief Executive Mark Dearnley commented: “We continue to make strong progress with our structural cost and productivity initiatives and currently expect full-year 2026 pre-exceptional operating profit will be at the top of the consensus range following a return to strong year-on-year growth in the second half.”
Market Reaction
Shares in Hays jumped 11.8% to 40.08p on Friday morning, reaching a four-month high. Adam Vettese, market analyst at eToro, said: “Hays’ Q4 update underlines that the group is doing a good job of managing what it can control in a difficult market.”
