REG - Hays PLC - Pre-Close Year End Trading Update

HaysAnnouncement

19/06/2025 07:00

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RNS Number : 4741N  Hays PLC  19 June 2025

PRE-CLOSE YEAR END TRADING UPDATE

19 June 2025

 

c.£45m pre-exceptional operating profit expected in FY25 primarily due to
more challenging Perm markets

Activity levels during our fourth quarter (ending 30 June) have reduced
sequentially driven primarily by broad-based weakness in Perm markets globally
reflecting low levels of client and candidate confidence as a result of
macroeconomic uncertainty. Temp & Contracting activity continues to be
more resilient.

We currently expect Group like-for-like net fees to decline by 9% YoY in Q4
(8% on a working day adjusted basis) against a soft prior-year comparative,
with Perm and Temp & Contracting down 14% and 5% respectively.

Our current cost base on a periodic and constant currency basis has improved
to c.£75m from c.£76m in Q3. However, given the largely fixed short-term
nature of our cost base there has been a high drop-through of lower net fees
to profitability and, as a result, we currently expect FY25 pre-exceptional
operating profit of c.£45m*

At a regional level, we expect like-for-like net fees in our largest country
Germany to decrease by 5% with continued stability in Contracting but weaker
conditions in Perm and Temp, primarily due to a subdued Automotive sector.
Perm has also weakened in the UK&I and we expect a 13% divisional net fee
decline, and similarly in ANZ where net fees are expected to be down 9% YoY.

Net fees are expected to decline by 9% YoY in RoW. EMEA ex-Germany (net fees
down 13%) has experienced challenging Perm markets, particularly in France.
Asia (net fees down 3%) is stable overall. Americas (net fees down 1%) with 5%
YoY growth in North America where markets remain stable.

Cash performance remains in line with normal trends and we expect a modest net
cash position at year-end.

We expect current challenging market conditions to persist into FY26 and
remain committed to delivering our focused strategy. Our initiatives to
improve net fee productivity in real terms and back-office efficiency will be
important drivers of medium-term profit recovery when the market recovers.

 

* Company compiled consensus pre-exceptional operating profit for FY25 is
£56.4m, based on ten analysts.

 

This announcement contains inside information. The person responsible for
releasing this announcement is Rachel Ford, General Counsel & Company
Secretary.

 

 

Enquiries

 Hays plc                                                  Chief Financial Officer

James Hilton
Head of Investor Relations & ESG

Kean Marden                                                                                     +44 (0) 203 978 2520

+44 (0) 333 010 7092
 FGS Global

Guy Lamming / Anjali Unnikrishnan / Richard Crowley

                                                                                                hays@fgsglobal.com

Conference call

James Hilton and Kean Marden will conduct a conference call for analysts and
investors at 9:00am United Kingdom time on 19th June 2025. Participants are
invited to register via the URL link below:

https://register-conf.media-server.com/register/BI3505905c97704359b604cfaecfe9ae42
(https://url.uk.m.mimecastprotect.com/s/8svBCZY8RF5EAJWjfzfBhBR66T?domain=register-conf.media-server.com)

 

Once registered, you will receive a confirmation email, with the details of
the call and a personal login link and PIN which will place you directly into
the call, without the need to speak to an operator. The call will be recorded
and will also be available for playback via the results centre on our investor
website (https://www.haysplc.com/investors/results-centre) .

 

Reporting calendar

 Preliminary results for the year ending 30 June 2025               21 August 2025
 Trading update for the quarter ending 30 September 2025 (Q1 FY26)  10 October 2025
 Trading update for the quarter ending 31 December 2025 (Q2 FY26)   14 January 2026

Cautionary statement

This Trading Update (the "Report") has been prepared in accordance with the
Disclosure Guidance and Transparency Rules of the UK Financial Conduct
Authority and is not audited. No representation or warranty, express or
implied, is or will be made in relation to the accuracy, fairness or
completeness of the information or opinions contained in this Report.
Statements in this Report reflect the knowledge and information available at
the time of its preparation. Certain statements included or incorporated by
reference within this Report may constitute "forward-looking statements" in
respect of the Group's operations, performance, prospects and/or financial
condition. By their nature, forward-looking statements involve a number of
risks, uncertainties and assumptions and actual results or events may differ
materially from those expressed or implied by those statements. Accordingly,
no assurance can be given that any particular expectation will be met and
reliance shall not be placed on any forward-looking statement. Additionally,
forward-looking statements regarding past trends or activities shall not be
taken as a representation that such trends or activities will continue in the
future. The information contained in this Report is subject to change without
notice and no responsibility or obligation is accepted to update or revise any
forward-looking statement resulting from new information, future events or
otherwise. Nothing in this Report shall be construed as a profit forecast.
This Report does not constitute or form part of any offer or invitation to
sell, or any solicitation of any offer to purchase or subscribe for any shares
in the Company, nor shall it or any part of it or the fact of its distribution
form the basis of, or be relied on in connection with, any contract or
commitment or investment decisions relating thereto, nor does it constitute a
recommendation regarding the shares of the Company or any invitation or
inducement to engage in investment activity under section 21 of the Financial
Services and Markets Act 2000. Past performance cannot be relied upon as a
guide to future performance. Liability arising from anything in this Report
shall be governed by English Law, and neither the Company nor any of its
affiliates, advisors or representatives shall have any liability whatsoever
(in negligence or otherwise) for any loss howsoever arising from any use of
this Report or its contents or otherwise arising in connection with this
Report. Nothing in this Report shall exclude any liability under applicable
laws that cannot be excluded in accordance with such laws.

 

LEI code: 213800QC8AWD4BO8TH08

 

 

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