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yesterday

Hays Cuts Dividend After Profit Collapse as Recruitment Slump Deepens

Robust cash generation leaves the group funding deeper cost savings through a prolonged hiring slowdown.

Hays blamed economic and political uncertainty for discouraging companies from hiring
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Overview

  • Preliminary results for the year to June show like-for-like net fees of £972.4m, down 11% as permanent hiring fees fell 17% and placements declined about a fifth.
  • Profit before tax on a pre-exceptional basis dropped to £32.2m, with statutory pre-tax profit down 90% to £1.5m.
  • The board cut the final dividend to 0.29p, taking the full-year payout to 1.24p, 59% lower than last year.
  • Management delivered £35m of annual cost savings and targets a further £45m by FY29, closing or merging 29 offices and trimming consultant headcount by 14%—nearly 1,000 roles, including about 350 in the UK and Ireland.
  • Despite weaker earnings, operating cash flow rose 14% to £128.3m with 281% cash conversion, leaving £37m net cash, while trading in July and August showed no meaningful pickup.