Hays plc reported a 3% rise in pre-exceptional operating profit to £48.6 million for fiscal 2026, as £50 million in annualized cost savings offset an 8% decline in net fees to £905.5 million.
The London-listed recruitment firm achieved its £50 million savings target three years ahead of schedule through back-office efficiency programs, operational restructurings and property portfolio rationalization. This included the closure or consolidation of 74 offices globally. The company now aims to deliver an additional £50 million in annualized savings in fiscal 2027, bringing cumulative savings to approximately £165 million since the start of fiscal 2024.
Net fees fell across all major segments, with permanent recruitment fees down 12% and temporary and contracting fees down 5%. Germany, the largest contributor at 32% of group net fees, saw a 9% decline to £289.5 million, while the UK and Ireland segment returned to profitability with £4.0 million in operating profit despite a 10% drop in net fees to £174.0 million. Australia and New Zealand posted a 130% increase in operating profit to £8.5 million, while the Rest of World segment reported an operating loss of £5.1 million.
Hays reduced its geographic footprint from 31 to 16 countries, exiting six European markets through disposals in June 2026 for £4.6 million, resulting in a £7.0 million loss on disposal. The company is also reviewing strategic options for operations in Belgium, Brazil, Greater China, Malaysia, Netherlands, Singapore and the UAE. Focus has narrowed to six global specialisms—Technology, Finance, Construction & Property, Engineering, Life Sciences and HR—contributing 76% of group net fees in fiscal 2026.
The recruitment firm reduced its consultant headcount by 12% to 5,194 while increasing consultant net fee productivity by 7%, marking the 11th consecutive quarter of improvement. Operating cash flow totaled £92.0 million with a 189% cash conversion rate, while free cash flow stood at £22.0 million. The company maintained its full-year dividend at 0.44 pence per share, covered 2.8 times by pre-exceptional earnings.
Shares fell 4.06% to $68.55 in early trading following the results.
