Hays (LON:HAS) Releases Earnings Results

Key Points

• Pre-exceptional operating profit increased 3% to £48.6 million despite an 8% decline in net fees, helped by productivity gains, cost reductions and strong cash conversion.
• Hays launched its Momentum strategy, targeting 16 countries and higher-value recruitment areas, alongside technology investments and plans for an additional £50 million in structural savings during FY2027.
• Trading remains challenging, especially in permanent recruitment, where fees fell 12% and volumes dropped 14%; management also expects significant exceptional restructuring costs as it reshapes its country portfolio.

Hays (LON:HAS - Get Free Report) released its earnings results on Thursday. The company reported GBX (3.64) earnings per share for the quarter, Digital Look Earnings reports. Hays had a negative return on equity of 2.24% and a negative net margin of 0.16%.

Here are the key takeaways from Hays' conference call:

• Pre-exceptional operating profit rose 3% to £48.6 million despite an 8% decline in net fees to £906 million, supported by 7% productivity growth, cost reductions, and strong cash conversion.
• Hays launched its Momentum strategy to focus on 16 countries, six global specialisms, higher-value roles, and three product areas, with a medium-term ambition to increase consultant net fee productivity by more than 50% and restore conversion above 25%.
• The company delivered £50 million of annualized structural savings in FY2026 and targets a further £50 million in FY2027, while technology investments—including AI-enabled search and matching tools—are being rolled out to improve consultant efficiency and fill rates.
• Trading remains subdued, particularly in permanent recruitment, with perm fees down 12% and volumes down 14%; July and August activity was broadly unchanged from Q4, and management said September will be a key indicator of demand trends.
• Hays expects significant further exceptional restructuring costs in FY2027 as it pursues additional savings and reshapes its country portfolio, including potential impacts from exiting or reviewing operations in several European countries.

Hays Trading Down 5.4%

Shares of HAS opened at GBX 67.60 on Thursday. Hays has a 12-month low of GBX 28.68 and a 12-month high of GBX 72.83. The firm has a market capitalization of £1.06 billion, a P/E ratio of -102.42, a P/E/G ratio of 0.24 and a beta of 0.77. The firm has a 50-day moving average price of GBX 48.92 and a 200 day moving average price of GBX 40.82. The company has a current ratio of 1.27, a quick ratio of 1.31 and a debt-to-equity ratio of 65.55.

Wall Street Analysts Forecast Growth

HAS has been the subject of several research analyst reports. UBS Group reaffirmed a "neutral" rating and set a GBX 33 price target on shares of Hays in a research note on Friday, July 3rd. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a GBX 60 price objective on shares of Hays in a research report on Tuesday, July 14th. Citigroup decreased their price target on Hays from GBX 90 to GBX 75 and set a "buy" rating for the company in a research note on Friday, April 24th. Finally, Jefferies Financial Group reissued an "underperform" rating and set a GBX 28 price objective on shares of Hays in a report on Thursday, May 21st. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Hays currently has an average rating of "Hold" and an average target price of GBX 57.20.

Hays announced that its Board of Directors has initiated a share buyback plan on Monday, June 1st that permits the company to repurchase 0 shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Joe Hurd bought 5,672 shares of the firm's stock in a transaction on Monday, June 8th. The shares were bought at an average cost of GBX 35 per share, for a total transaction of £1,985.20. 0.81% of the stock is owned by company insiders.

About Hays

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