Hays reported a 3% increase in pre-exceptional operating profit to GBP 48.6 million for the six months ended June 30, 2026, despite an 8% decline in net fees to GBP 906 million on a like-for-like basis. The recruitment firm attributed the profit growth to GBP 50 million in annualized structural cost savings, achieved three years ahead of schedule.
Net fees fell across both permanent and temporary hiring segments, with permanent fees down 12% and temporary and contracting fees down 5%. Turnover decreased by 4% for the period. Pre-exceptional earnings per share declined 8% to 1.21 pence. The company generated GBP 92 million in cash from operations, with a cash conversion rate of 189%, and reported free cash flow of GBP 22 million.
Regional performance varied, with Germany showing resilience in temporary and contracting fees while permanent hiring remained challenging. The construction and property sector in Germany saw a 44% rise in fees, driven by infrastructure and energy projects. The U.K. and Ireland returned to profitability with a GBP 4 million operating profit, supported by a 14% improvement in consultant productivity. Australia and New Zealand more than doubled their operating profit.
Hays maintained its full-year dividend at 0.44 pence per share, including a final payment of 0.29 pence. The company ended the period with a net cash position of GBP 20.1 million and working capital inflows of GBP 24.9 million. Capital expenditure totaled GBP 24.1 million, while exceptional costs reached GBP 89.6 million, primarily tied to restructuring and disposals.
Looking ahead, Hays outlined targets under its "Momentum" growth strategy, including net fees exceeding GBP 1 billion, an operating profit above GBP 250 million, and a consultant net fee productivity increase of more than 50%. The company expects another GBP 50 million in structural cost savings in fiscal 2027 and capital expenditure of GBP 30 million to GBP 35 million. The effective tax rate is projected to decline slightly from the 45% recorded in fiscal 2026.
Shares in Hays fell 4.27% to $68.40 in pre-market trading, extending declines from the prior close of $71.45.
