REG - Hays PLC - Preliminary Report 2025
21/08/2025 07:00
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RNS Number : 1648W Hays PLC 21 August 2025
PRELIMINARY
REPORT
YEAR ENDED
30 JUNE 2025
21 August 2025
DELIVERING STRATEGIC PROGRESS DESPITE CHALLENGING MARKETS
Year ended 30 June 2025 2024 Actual LFL
(In £s million)
growth
growth
Net fees (1) 972.4 1,113.6 (13)% (11)%
Operating profit (before exceptional items) (2) 45.6 105.1 (57)% (56)%
Conversion rate (3) 4.7% 9.4% (470) bps
Profit before tax (before exceptional items) (2) 32.2 94.7 (66)% (65)%
Profit before tax 1.5 14.7 (90)% (89)%
Cash generated by operations (4) 128.3 112.3 14%
Basic earnings per share (before exceptional items) (2) 1.31p 4.03p (67)%
Basic earnings per share (0.49)p (0.31)p (58)%
Dividend per share 1.24p 3.00p (59)%
Note: unless otherwise stated all growth rates discussed in this statement are
LFL (like-for-like) net fees and profits, representing year-on-year (YoY)
organic growth of continuing operations at constant currency.
• Group net fees decreased by 11%. Temp & Contracting, down 7%, was more
resilient than Perm, down 17%. As guided at our June trading update,
pre-exceptional operating profit decreased 56% YoY to £45.6 million
• Strategic progress despite challenging markets. Driven by improved resource
allocation, consultant net fee productivity increased by 5% YoY, net fees
within Enterprise Solutions grew by 8%, and Temp & Contracting net fees
grew strongly in several of our Focus countries
• Delivering efficiencies through focus on costs driven by c.£35 million per
annum structural cost savings realised in FY25, ahead of target. Targeting
further c.£45 million per annum structural cost savings by FY29
• Strong cash flow with 281% cash conversion and net cash of £37.0 million.
Revolving credit facility refinanced and full buy-in of defined benefit
pension scheme will have a materially positive impact on free cash flow from
FY26
• Reduced final dividend of 0.29 pence per share, bringing the total dividend to
1.24 pence. Realigning dividend and capital allocation framework; committed to
balance sheet strength and 2-3x dividend cover while investing in the business
• Current trading in July and August has been in line with our expectations with
no significant change to trading momentum from Q4. September is the key
trading month in our first quarter, and it is too early to assess trends
Dirk Hahn, Chief Executive Officer, commented:
"Market conditions remained challenging during the year, with economic and
political uncertainty weighing on confidence, increasing 'time-to-hire' and
reducing placement volumes. Despite making significant strategic and
operational progress towards our long-term ambitions, our overall financial
performance was impacted by these headwinds.
Against this backdrop we continued to execute against our objectives and are
incredibly grateful for the ongoing commitment of our colleagues. We
maintained strong cost-discipline, generated good progress in consultant fee
productivity, grew our Enterprise business, and improved our business mix. Our
strategy, targeting the most in-demand sectors, roles and geographies,
building stronger client relationships and increasing exposure to Temp &
Contracting recruitment, continues to develop. In addition, we have exceeded
our cost initiatives target and have set an ambition to target a further
c.£45 million per annum structural cost savings by FY29. I am confident we
have the right strategy and people and we remain well positioned to drive
material net fee and profit growth when key markets recover."
(1) Net fees comprise turnover less remuneration of temporary workers and other
recruitment agencies.
(2) Exceptional items for the year ended 30 June 2025 of £30.7 million consists
of a restructuring charge of £17.7 million and £13.0 million relating to
Technology transformation and Finance transformation programmes; the prior
year charge of £80.0 million consists of a restructuring charge of £42.2
million and goodwill and intangible impairment of £37.8 million.
(3) Conversion rate is the conversion of net fees into pre-exceptional operating
profit.
(4) Cash generated by operations is stated after lease payments of £47.5 million
(FY24: £51.0 million). Cash conversion represents cash generated by
operations divided by pre-exceptional Group operating profit.
(5) Underlying Temp margin is calculated as Temp net fees divided by Temp gross
revenue and relates solely to Temp placements in which Hays generates net
fees. This specifically excludes transactions in which Hays acts as agent on
behalf of workers supplied by third party agencies and arrangements where Hays
provides major payrolling services.
(6) Represents percentage of Group net fees and pre-exceptional operating profit.
(7) Due to our internal Group reporting cycle, the Group's annual cost base
equates to c.12.3x our cost base per period.
Enquiries
Hays plc
James Hilton Chief Financial Officer + 44 (0) 203 978 2520
Kean Marden Head of Investor Relations & M&A + 44 (0) 333 010 7092
FGS Global
Guy Lamming / Anjali Unnikrishnan / Richard Crowley hays@fgsglobal.com
Results presentation & webcast
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A recording of the webcast will be available on our website later the same day
along with a copy of this press release and all presentation materials.
Reporting calendar
Trading update for the quarter ending 30 September 2025 (Q1 26) 10 October 2025
Trading update for the quarter ending 31 December 2025 (Q2 26) 14 January 2026
Interim results for the six months ending 31 December 2025 (H1 26) 25 February 2026
Hays Group overview
As at 30 June 2025, Hays had c.9,500 employees in 207 offices in 31 countries.
In many of our global markets, the vast majority of professional and skilled
recruitment is still done in-house, with minimal outsourcing to recruitment
agencies, which presents substantial long-term structural growth
opportunities. This has been a key driver of the diversification and
internationalisation of the Group, with the International business
representing 80% of the Group's net fees in FY25, compared with 25% in FY05.
Our consultants work in a broad range of industries covering recruitment in 21
professional and skilled specialisms. Our four largest specialisms of
Technology (25% of Group net fees), Accountancy & Finance (15%),
Engineering (11%) and Construction & Property (11%) collectively
represented c.62% of Group net fees in FY25.
In addition to our international and sectoral diversification, in FY25 the
Group's net fees were generated 62% from Temp & Contracting and 38% from
Permanent placement markets. This well-diversified business model continues to
be a key driver of the Group's financial performance.
Current trading
July and August to date have been in line with our expectations, with no
significant change to trading momentum from Q4. September is the key trading
month of the quarter, and it is currently too early to assess trends.
There are no material working-day impacts anticipated in either H1 26 or FY26.
Given our ongoing focus on driving consultant productivity, we expect overall
Group consultant headcount will remain broadly stable in Q1 26. We will also
continue to deliver on our structural efficiency programmes which will further
reduce our cost base per period in FY26. Overall, our current capacity has
significant scope to deliver material net fee and profit growth when our key
markets recover.
FY25 operational and strategic review
Market backdrop and trading summary
Market conditions remained challenging in FY25, as economic and political
uncertainty weighed on client and candidate confidence driving lower placement
volumes and a material lengthening of our 'time-to-hire'. Although there was
continued evidence of strategic delivery during the year, our financial
performance was significantly impacted with net fees down 11%.
Temp & Contracting net fees decreased by 7%. Volumes declined by 6% YoY
and the combined impact of hours worked, margin and mix reduced net fees by a
further 1%. Importantly, net fee growth was positive in five of our Focus
countries driven by good volume growth in structurally attractive markets.
Perm net fees decreased by 17% and slowed through the year, particularly in
the fourth quarter, as weak client and candidate confidence drove below-normal
conversion of activity to placement. Due to this "Great Hesitation", a 20%
volume decline more than offset a 3% increase in average pricing.
A prolonged feature of our markets over the last 24 months has been relatively
high activity levels with job inflow per consultant broadly in line with 2019
levels, so our consultants remain busy and have worked extremely hard. The
Board is very grateful for this as well as the deep commitment shown by all
our colleagues. However, closing placements has been harder with a significant
impact on our average placement volume per consultant, or volume productivity,
which currently sits below normal levels. This has created a material headwind
to Group profitability and conversion rate.
Despite this, our business line prioritisation and improved resource
allocation of consultants to strategically important markets has resulted in a
sector-leading productivity increase and net fees per consultant grew by 5%
YoY in FY25. We have worked hard to balance cost reductions with protecting
our productive capacity. Consultant headcount declined by 14% during the year
through a mix of natural attrition, performance management, and business line
closures.
Non-consultant headcount declined by 15% YoY which included accelerating our
back-office efficiency programmes notably in Technology and Finance, the
restructuring of operations in several regions, including closing operations
in Chile and Colombia, and delayering of management. These projects drove a
further c.£35 million per annum structural cost reduction in addition to the
c.£30 million savings delivered in FY24. Overall, our actions have
structurally lowered our costs by c.£65 million per annum since the start of
the last fiscal year.
Overall, the Group's periodic cost base was reduced from c.£81 million in Q4
24 to c.£75 million in Q4 25. However, despite these actions, Group
pre-exceptional operating profit declined by 56%.
Building a structurally more resilient, profitable and growing business
Our strategy is built upon Five Levers and is designed to build a structurally
more resilient, profitable and growing business underpinned by our culture and
talented colleagues worldwide. We will increase our exposure to the most
in-demand future job categories, growing industries and end-markets, higher
skilled and higher paid roles, Temp & Contracting and large Enterprise
clients. Our strategy is not 'one-size-fits-all' and we will tailor each
region and country to its market and customer needs. We will build scale in
high performing and high potential markets and will scale back where forces
are less supportive.
Business line prioritisation, optimised resource allocation, and scaling our
eight Focus countries will establish a broader base and enable the Group to
achieve its long-term objective of returning to, and then exceeding, our
previous peak operating profit of c.£250 million.
Delivering on our strategy
We continue to apply a more forensic analysis of our business lines to focus
on markets with the most attractive consultant productivity and long-term
growth opportunities. We have reduced split Perm/Temp desks and optimised our
delivery models to drive improved focus and productivity through the business.
Despite challenging markets, we made substantial progress during the year.
1. Business line prioritisation, optimised resource allocation, and delivery
efficiencies have resulted in a sector leading 5% YoY consultant net fee
productivity increase in FY25.
2. Enterprise Solutions delivered strong net fee growth of 8% as we took share in
this long-term growth market.
3. Net fees in Temp & Contracting were more resilient than Perm and grew
strongly in several Focus countries.
4. We secured a further c.£35 million per annum in structural cost savings and
surpassed our c.£30 million per annum three year target in one year.
1. Sector leading productivity momentum throughout the year
Consultant net fee productivity increased YoY by 5%, including up 6% in H2.
Our momentum remained sector-leading throughout this period and, on a
seasonally adjusted basis, productivity has increased now for seven
consecutive quarters.
Examples of our continued focus on operational rigour and resource allocation
include:
• In the US, net fee productivity increased by 38% year-on-year in FY25 and the
country has moved back to profitability from losses in the prior year. After
an extensive review, our management team closed business units and offices
where we lacked critical mass and now has a highly focused core operation.
• We were not satisfied with our first half performance in the UK & Ireland
and took decisive action to improve productivity and operational efficiency.
Encouragingly, consultant net fee productivity increased by 9% YoY in H2 and,
as anticipated, the division returned to profitability in the half.
2. Strong 8% growth in Enterprise Solutions net fees in FY25
Through our strategy, we are building stronger relationships with clients. Our
Enterprise Solutions business works with some of the largest companies in the
world, often in multiple countries and specialisms. We manage contingent
labour forces under MSP arrangements, our largest area at c.75% of Enterprise
net fees, but also provide RPO, on-boarding, compliance, assessment, and
workforce planning.
Organisations across the globe are facing disruptive world of work megatrends,
including acute skills shortages, changing demographics, growing demand for
flexible working models, regional differences in talent costs, the need
for robust DE&I strategies, and the rapid evolution of Generative AI. We
help our clients around the world to navigate these megatrends by providing a
unified, consistent experience through a single, cohesive engagement strategy.
Enterprise Solutions helps drive the appropriate talent acquisition strategy
for each client, delivering skilled people at scale - exactly when, where, and
how required.
We aim to be the leading provider of talent solutions to these complex global
enterprises by becoming their partner-of-choice and leveraging tailored
solutions to solve intricate talent and workforce challenges. Successfully
providing a consistent global approach to how we engage with clients, how we
contract with them, and how we deliver services, provides opportunities to
capture more share of client spend by growing geographically and by
cross-selling our suite of services.
Enterprise Solutions delivered strong 8% net fee growth in FY25 supported by
several drivers:
• We grew within existing clients driven by headcount investment, higher fill
rates, and geographic expansion.
• We secured new clients including first generation outsourcing opportunities
and strategic wins from competitors. Our win rate has significantly improved
over the last two years driven by a growing reputation for excellent client
service and enhancements to our deal qualification discipline under a new
global sales process.
• Underpinned by our high service quality, we retained key contracts including
Mitie, Kier, and a three-year renewal with AstraZeneca which will extend our
relationship to 25 continuous years.
Two years ago, a new global sales process introduced a more diligent approach
to deal qualification, speed, and consistency. As a result, our bid pipeline
has become more focused and relevant, containing fewer but larger
opportunities with average deal value doubling over the last year, and our
win-rate percentage has improved from one in five in FY24 to one in three in
FY25. In addition, the establishment of our global contracts board will make
it easier for large deals to be contracted faster, leading to swifter
revenues.
Our C-suite engagement is rising as we become a more strategic partner to our
clients. We enter the new year with encouraging momentum and a substantial bid
pipeline.
3. Improving our net fee mix
We intend to improve our net fee mix over time by increasing our exposure to
high performing markets with the most attractive long-term structural growth
opportunities in our core markets of Temp, Contracting and Perm recruitment.
Through our strategy, we expect to increase the proportion of Temp &
Contracting net fees in our businesses. Temp & Contracting net fees were
relatively resilient through the year, and the contribution to Group net fees
increased to 62% from 59% in FY24, whereas Perm markets became increasingly
challenging in most of our major countries.
The YoY decline in Temp & Contracting net fees was 7% in FY25 but growth
was positive in five of our eight Focus countries, including notably strong
performances in Spain, Poland and Italy.
• Italy (FY25 Temp & Contracting net fees +29%) as our business line
prioritisation and optimised resource allocation initiatives generated
attractive returns.
• Poland (+19%) despite client and candidate nervousness regarding high
inflation, political uncertainty, and challenges in neighbouring Germany and
Ukraine, due to strong handling of large contracting accounts and an agile MSP
offering.
• Spain (+16%) driven by a large new client win, changes to the operating model
and increased operational rigour.
• Austria (+7%) driven by focus on key industries such as Life Sciences, Energy,
Manufacturing/Engineering, and IT Services.
• USA (+5%) following earlier initiatives to focus on a narrower range of
business lines and Enterprise client successes.
In our Key countries, Temp & Contracting net fees declined YoY in Germany
due to more challenging markets in Temp where we have greater exposure to the
Automotive sector, and in ANZ and the UK&I where we experienced relative
resilience in the private sector but tougher market conditions in the public
sector.
Our Perm businesses globally are a core part of our service offering and
despite greater cyclicality there are long-term structural growth
opportunities, particularly in higher skilled roles. Overall Group Perm net
fees declined by 17% in FY25, but we saw good levels of growth in the US,
Spain, and Portugal.
We also intend to increase our exposure to growing industries and end-markets,
higher skilled and higher paid roles. Examples of progress during the year
include:
• Our average Perm fee increased by 3%
• The average placement fee in Temp & Contracting increased by 3% YoY in H2
• Our net fees in the Construction & Property sector in Germany grew by 21%
in FY25 driven by infrastructure projects, and by 5% in Energy
We continue to forensically analyse our business lines to focus on those with
the most attractive productivity and long-term growth opportunities. During
the year, we exited business lines, closed our operations in Chile and
Colombia, and divested our stake in FAIRER Consulting back to its founder at
the end of July 2025. We will continue to work closely and collaborate with
FAIRER Consulting as a strategic partner, recognising the value that focus on
diversity can add to client relationships.
4. An additional c.£35 million per annum of structural cost savings realised in
FY25, ahead of target
Last year, we set ourselves a target of delivering c.£30 million per annum in
structural cost savings by FY27 through our transformation programmes. We made
excellent progress toward this target and exited the year with c.£35 million
annual savings.
We completed our Americas Finance and global Technology transformations, and
made significant progress with our Germany and EMEA regional Finance
programmes. Altogether, these generated c.£16 million annualised savings.
In addition, we generated c.£19 million annual savings from delivering
structural operational efficiencies including restructuring operations in
Germany, UK&I, France, Czech Republic and Latam. As we announced at our Q3
results, we closed our operations in Chile and Colombia on 30 June 2025. We
have removed duplicated costs, delayered management, outsourced selective
opportunities, further standardised and globalised processes, and expanded our
shared service centres. Through our activities, we closed or merged 29
offices, ending the year with 207 offices. Non-consultant headcount declined
by 15% YoY.
As a result of these actions, we incurred exceptional restructuring charges of
£30.7 million((2)), detailed on page 8. Due to the ongoing and multi-year
nature of our restructuring and transformation programmes, which are
strategically reshaping the business in line with our Five Levers strategy, we
expect to incur further exceptional costs in FY26.
Relentless focus on strategic execution to reposition and reshape the business
Even as our markets remain challenging, we are very focused on our strategic
execution. In particular, firstly, we will continue to invest in and align our
business with high potential and high performing business lines. We will scale
back or exit business lines with low performance and potential and, as part of
this, we are further reviewing our country portfolio. Reshaping and improving
our business mix in line with our strategy will over time be a material driver
of sustained consultant productivity growth.
Secondly, we will continue to invest in our technology estate to harness the
power of data and AI which will provide the following benefits:
• Improved net fee productivity as we provide our consultants with best-in-class
tools and reduce administrative burden
• Improved automation and efficiency in our back-office and middle-office
functional areas
• Provide more powerful and personalised data and insights to our customers,
enhancing our exceptional service to clients and candidates
Thirdly, our programme to secure c.£30 million per annum structural
efficiency cost savings by the end of FY27 has progressed well and we exited
the year with c.£35 million per annum against this target resulting from our
back office and operational efficiency programmes. Consequently, we have set
ourselves the ambition of delivering a further c.£45 million per annum of
structural cost savings by FY29, bringing total savings to c£80 million per
annum. This will be delivered through the completion of our global Finance and
Technology transformation programmes, delivering efficiencies in other global
support functions, and driving operational efficiencies through our sales
organisation. These savings will be partially reinvested in our technology
programmes to deliver enhanced data and AI capabilities.
Realigning dividend and capital allocation framework
Faced with a second consecutive year where our core dividend cover would be
below our 2-3x target range, together with an uncertain trading outlook, the
Board has proposed a reduction in the final dividend payment that more
appropriately aligns to the Group's current level of profitability and
affordability.
The final dividend proposed of 0.29 pence per share is calculated on 3x FY25
pre-exceptional earnings cover, and applying our historic one-third/two-thirds
interim/final split. This brings the full year dividend to 1.24 pence per
share.
Our business model remains highly cash generative and the Board's views on
priorities for use of cash flow are clear. Going forward, the Board will apply
the following principles in its capital allocation framework. Firstly, to fund
the Group's investment and development requirements. Secondly, to maintain a
strong balance sheet position. Thirdly, maintain a dividend that is affordable
and appropriate within a target cover range of 2-3x pre-exceptional earnings.
Fourthly, to return surplus cash to shareholders through an appropriate
combination of special dividends and share buybacks. We have, however, removed
our £100 million cash buffer to provide greater flexibility through the cycle
as our cash position rebuilds over the longer term.
Financial Review
Summary Income Statement Growth
Year ended 30 June 2025 2024 Reported LFL
(In £s million)
Turnover 6,607.0 6,949.1 (5)% (4)%
Temp & Contracting 604.0 662.1 (9)% (7)%
Perm 368.4 451.5 (18)% (17)%
Net fees ((1)) 972.4 1,113.6 (13)% (11)%
Operating costs (926.8) (1,008.5) (8)% (6)%
Operating profit (before exceptional items) ((2)) 45.6 105.1 (57)% (56)%
Operating profit (after exceptional items) ((2)) 14.9 25.1 (41)% (40)%
Conversion rate ((3)) 4.7% 9.4%
Underlying Temp margin ((5)) 15.3% 15.5%
Temp & Contracting net fees as % of total net fees 62% 59%
Period-end consultant headcount 6,070 7,045 (14)%
Period-end non-consultant headcount 3,453 4,075 (15)%
Turnover for the year ended 30 June 2025 decreased by 4% (5% on a reported
basis). Net fees for the year ended 30 June 2025 decreased by 11% on a
like-for-like basis, and by 13% on a reported basis, to £972.4 million. This
represented a like-for-like fee decline of £118.1 million versus the prior
year. The higher net fee decline compared to turnover was due to the
relatively resilient performance in Temp & Contracting versus Permanent
recruitment and a strong performance in our Enterprise Solutions business.
Temp & Contracting net fees (62% of Group) decreased by 7%. Volumes
declined by 6% YoY, with a further 2% or c.£14 million net fee impact from
lower average hours worked per contractor in Germany. There was a 1% increase
from improved specialism and geographical mix, despite a 20bps YoY decrease in
our underlying Temp margin((5)) to 15.3%.
Perm net fees (38% of Group) decreased by 17%. Perm volumes were down by 20%
with weak client and candidate confidence driving below-normal conversion of
activity to placement. As with prior years, this was partially offset by our
average Perm fee which grew by 3%. Net fees in the Private sector (84% of
Group), decreased by 9% but the Public sector was more challenging, down 18%.
Our largest global specialism of Technology (25% of Group net fees) decreased
by 11%, with Perm significantly more challenging than Temp & Contracting.
Senior Finance outperformed Junior Finance but our overall Accountancy &
Finance net fees decreased by 9%. Construction & Property was down 5% but
improved to broadly flat in H2 driven by the UK&I and Germany. Engineering
declined by 15% and was impacted by the weaker automotive sector in Germany.
However, our Enterprise Solutions business reported strong 8% net fee growth
in FY25, driven by good performance in MSP contracts and several new client
wins.
Operating profit declined but we are structurally improving Hays despite
challenging markets
FY25 pre-exceptional((2)) Group operating profit of £45.6 million represented
a like-for-like decrease of 56% (down 57% reported) with a higher drop-through
of lower net fees to profitability in the final quarter from broad-based
weakness in Perm markets globally. The Group conversion rate((3)) decreased by
470 bps YoY to 4.7%.
Like-for-like operating costs decreased by 6% YoY or £61.0 million (£81.8
million on reported basis, down 8%). This was driven by a 14% lower average
Group headcount, lower commissions and bonuses, and our structural cost saving
initiatives partially offset by our own salary increases and underlying cost
inflation. Our periodic cost base was reduced from c.£81 million in Q4 24 to
c.£75 million in Q4 25, on a constant currency basis.
Exchange rate movements decreased net fees and operating profit by £23.1
million and £2.4 million, respectively. This resulted from the strengthening
in the average rate of exchange of sterling versus our main trading
currencies, notably the Euro. Currency fluctuations remain a significant Group
sensitivity.
Exceptional restructuring charge
During the year, the Group incurred an exceptional charge of £30.7 million
(FY24: £80.0 million), as we undertook the restructure of several country
business and back-office operations. In Germany, the United Kingdom &
Ireland and in France we restructured our back-office functions, closed
several business lines, and delayered management levels. We also closed 16
offices in the United Kingdom & Ireland and four offices in France. We
restructured the operations of the Statement of Works business in Germany and
closed the Statement of Works business in the United Kingdon & Ireland. In
the Americas we closed our operations in Chile and Colombia and our offices in
Rio de Janeiro and Campinas, to focus on two high potential markets by
creating flagship offices in Sao Paulo and Mexico City. We also restructured
our Czech business, to only service Enterprise clients in Temp &
Contracting roles, with no Perm or SME activities continuing, resulting in the
closure of two offices and all back-office functions. These restructuring
exercises led to the redundancy of a number of employees, including senior
management and back-office positions, together with other closure costs, at a
combined cost of £17.7 million.
The Group also incurred a £13.0 million exceptional charge in relation to the
multi-year Technology transformation and Finance transformation programmes,
comprising both staff costs and third-party costs. This comprised the
outsourcing of our Technology helpdesk, application development and support,
infrastructure and maintenance activities to our technology partner Cognizant.
In addition, we completed our Americas and made substantial progress with our
Germany and EMEA regional Finance Transformation programmes. Despite being
multi-year, the transformation projects are considered to be one-off in nature
because the changes being implemented are of a much greater scale and breadth
than at any point over the last twenty years, fundamentally changing how our
support functions operate across the Group, strategically reshaping the
business in line with our Five Levers, and making a significant contribution
towards our long-term structural cost-saving ambitions.
The cash impact of the exceptional charge in the year was £17.5 million, with
an additional £12.4 million of cash payments in respect of the prior year
exceptional charge.
During the prior year, the Group incurred an exceptional charge of £80.0
million. Of this, £42.2 million related to a restructuring charge and the
remaining £37.8 million was non-cash, related to the partial impairment of
goodwill in the US business and the impairment of intangible assets.
Net finance charge
The net finance charge for FY25 was £13.4 million (FY24: £10.4 million). The
increase YoY was primarily due to a £3.3 million increase in net bank
interest payable (including amortisation of arrangement fees) to £7.3 million
(FY24: £4.0 million) due to higher average drawings on the Group's revolving
credit facility. The £1.5 million charge on defined benefit pension scheme
obligations (FY24: £1.3 million) is non-cash. The non-cash interest charge on
lease liabilities under IFRS 16 was £4.6 million (FY24: £5.0 million) and
The Pension Protection Fund levy was £nil (FY24: £0.1 million).
We expect the net finance charge for FY26 to be c.£12 million, slightly below
FY25 due to the impact of the defined benefit pension buy-in and lower
utilisation of our revolving credit facility, driven by improving working
capital.
Taxation
The tax charge for the year ended 30 June 2025 of £11.3 million (FY24: £30.7
million) represented a pre-exceptional effective tax rate ("ETR") of 35.1%
(FY24: 32.4%). The higher ETR was driven by the geographic mix of profit
together with the impact of tax losses in some country operations in H2 and
the associated impact on deferred tax asset recognition. On a post exceptional
basis, the effective tax rate was 620%, in which a £4.1 million tax credit in
respect of exceptional items was partially offset by a £2.1 million tax
charge arising from the derecognition of a deferred tax asset, following the
pension buy-in.
We expect the Group's ETR in FY26 to be c.38%, consistent with H2 FY25,
assuming no material change in geographic mix of profits, and to reduce as
profits rebuild over time.
Earnings per share
The Group's pre-exceptional basic earnings per share (EPS) of 1.31p was 67%
lower than the prior year. The reduction was primarily driven by 56% lower
pre-exceptional operating profit together with the higher net finance charge
and ETR noted above. On a post-exceptional basis, EPS of (0.49)p was down 58%
YoY.
Balance sheet and cash generation
Our net cash position at 30 June 2025 was £37.0 million. We had a strong cash
performance across the Group and converted 281% of operating profit((2)) into
operating cash flow((4)), up YoY (FY24: 107%((4))) due to a working capital
inflow of £58.1 million in FY25 (FY24: £16.5 million outflow) as Temp &
Contracting fees and placements reduced and cash collection remained strong.
Debtor days increased slightly to 37 days (FY24: 36 days), largely due to
growth in our Enterprise Solutions business which has longer payment terms
than the Group average. Debtor days remain below pre-pandemic levels and our
aged debt profile remains strong. Group bad debt write-offs remain in line
with FY24 and are at historically low levels. Our strong cash performance
drove FY25 cash from operations of £128.3 million, up 14% YoY.
Cash tax paid in the year was £12.9 million (FY24: £26.4 million). Net
capital expenditure was £22.7 million (FY24: £23.4 million), with continued
investments in infrastructure and cyber security. We expect capital
expenditure will be higher at c.£35 million in FY26 driven by our Hays Data
and AI investment programmes together with ongoing technology infrastructure
investment.
Company pension contributions were £23.1 million (FY24: £18.2 million) which
comprised £8.4 million in respect of pension deficit contributions, an
additional one-off £12.6 million related to the full pension buy-in completed
in December 2024, and a further £2.1 million of expenses and true-up costs.
There were no further deficit contributions following the scheme's full buy-in
in December 2024, which provides a material cash flow benefit from FY26.
Net interest paid was £7.3 million (FY24: £4.0 million). The cash impact of
exceptional restructuring charge in FY25 was £29.9 million.
During the year we paid a £32.6 million final core dividend for FY24 and a
£15.2 million FY25 interim dividend.
Retirement benefits
On 9 December 2024, Hays Pension Trustee Limited in agreement with Hays plc
entered into a £370 million bulk purchase annuity policy (buy-in) contract
with Pension Insurance Corporation plc ("PIC"). Building on the purchase of a
bulk annuity policy with Canada Life for a premium of £270.6 million on 6
August 2018, the new PIC policy fully insures the Scheme's remaining benefit
obligations. The impact of this transaction is reflected in the IAS 19
valuation as at 30 June 2025.
The Group's pension position under IAS 19 at 30 June 2025 has resulted in a
surplus of £nil (30 June 2024: surplus of £19.4 million, 31 December 2024:
surplus of £nil). The reduction in the surplus since 30 June 2024 is due to
the impact of the full pension buy-in, as noted above. The transfer to
provisions of £4.9 million comprises the unfunded pension scheme (£5.2
million), which was not part of the buy-in due to the members' benefits being
outside of the Registered Pension Regime, and the net impact of anticipated
post buy-in adjustments on the scheme (£0.3 million positive).
Final dividend
Faced with a second consecutive year where our core dividend cover would be
below our 2-3x target range, together with an uncertain trading outlook, the
Board has proposed a reduction in the final dividend payment that more
appropriately aligns to the Group's current level of profitability and
affordability.
The final dividend proposed of 0.29 pence per share is calculated on 3x FY25
pre-exceptional earnings cover, and applying our historic one-third/two-thirds
interim/final split. This brings the full year dividend to 1.24 pence per
share.
The final dividend will be paid on 26 November 2025 to shareholders on the
register on 17 October 2025. A Dividend Reinvestment Plan (DRIP) is provided
by Equiniti Financial Services Limited. The DRIP enables the Company's
shareholders to elect to have their cash dividend payments used to purchase
the Company's shares. More information can be found at
www.shareview.co.uk/info/drip
(https://url.uk.m.mimecastprotect.com/s/bZdKCMwZ6TqoBG4WtkhzS8wJXf?domain=shareview.co.uk)
. The deadline to elect to participate in the DRIP is 5 November 2025.
Foreign exchange
Overall, net currency movements versus sterling negatively impacted results in
the year, decreasing net fees by £23.1 million, and operating profit by £2.4
million, primarily due to the strengthening of sterling versus the Euro.
Fluctuations in the rates of the Group's key operating currencies versus
sterling represent a significant sensitivity for the reported performance of
our business. By way of illustration, based on our FY25 results, each 1 cent
movement in annual exchange rates of the Euro and Australian dollar impacts
net fees by c.£4.0 million and c.£0.6 million respectively per annum, the
Euro has c.£0.6 million per annum impact on operating profit and the
Australian dollar £0.1 million.
The rate of exchange between the euro and sterling over the year averaged
€1.1897 and closed at €1.1656. As at 18 August 2025 the rate stood at
€1.1586. The rate of exchange between the Australian dollar and sterling
over the year averaged AUD $1.9992 and closed at AUD $2.0877. As at 18 August
2025 the rate stood at AUD $2.0821.
The strengthening of sterling versus our main trading currencies of the Euro
and Australian dollar is currently a modest headwind to Group operating profit
in FY26.
Movements in consultant headcount and office network changes
Consultant headcount at 30 June 2025 was 6,070, down 14% YoY and 34% below
peak (Q1 23). Total Group headcount decreased by 14% YoY, including the impact
of our restructuring programmes noted earlier.
Given our focus on consultant net fee productivity by targeting higher
skilled/higher paid roles and the most in-demand industries and markets, we
will continue to review our consultant capacity to ensure it is appropriate
for current market conditions. We expect total Group headcount will continue
to decrease modestly as our multi-year programme to transform our front,
middle and back-office functions will significantly reduce overheads and
streamline processes. We expect overall Group consultant headcount will remain
broadly stable in Q1 26.
Consultant headcount 30 Jun 30 Jun Net change 31 Dec Net change
2025
2024
YoY
2024
(vs. 31 Dec
2024)
Germany 1,624 1,858 (13)% 1,784 (9)%
United Kingdom & Ireland 1,285 1,629 (21)% 1,503 (15)%
Australia & New Zealand 675 729 (7)% 714 (5)%
Rest of World 2,486 2,829 (12)% 2,809 (11)%
Group 6,070 7,045 (14)% 6,810 (11)%
As part of our focus on optimising our country portfolio and execution of our
strategy, we closed or consolidated 29 locations in FY25.
Office network 30 Jun 30 Jun Net change 31 Dec
2025
2024
YoY
2024
Germany 26 26 - 26
United Kingdom & Ireland 59 75 (16) 70
Australia & New Zealand 34 37 (3) 35
Rest of World 88 98 (10) 94
Group 207 236 (29) 225
Germany
Resilience in Contracting, tough market conditions persist in Temp and Perm
Growth
Year ended 30 June 2025 2024 Reported LFL
(In £s million)
Net fees ((1)) 308.9 351.8 (12)% (10)%
Pre-exceptional operating profit ((2)) 52.1 68.0 (23)% (22)%
Conversion rate ((3)) 16.9% 19.3%
Period-end consultant headcount 1,624 1,858 (13)%
Our largest market of Germany saw net fees decrease by 10% to £308.9 million.
Operating profit((2)) decreased by 22% to £52.1 million at a conversion rate
of 16.9% (FY24: 19.3%). Currency impacts were negative in the year, decreasing
net fees by £7.5 million and operating profit by £1.4 million.
Client cost controls drove a reduction in average hours worked and a c.£14
million YoY headwind to net fees and operating profit. Hours worked were
sequentially stable through the year but declined by 5% YoY with the
comparable easing in Q4.
We continue to see greater resilience in Contracting, with volumes remaining
solid overall throughout the year as fewer finishers offset a lower number of
starters, but more challenging markets in Temp where we have greater exposure
to the Automotive sector. Temp & Contracting, (84% of Germany net fees),
decreased by 8%. This was driven by a 4% decline in volumes and 5% from lower
average hours worked, partially offset by a 1% increase in pricing and mix,
benefiting from our pricing initiatives and targeting of resilient sectors.
In Perm, net fees decreased by 21%. This resulted from a 26% decrease in Perm
volumes, partially offset by a 5% increase in our average Perm fee. Activity
levels remain subdued in Perm as client decision making slowed during the year
and we saw a corresponding reduction in placements through H2.
At the specialism level, our largest specialism of Technology (33% of Germany
net fees), decreased by 10%, with Engineering, our second largest, down 19%.
Construction & Property increased by 21% with Accountancy & Finance
and HR down 1% and 20% respectively. Net fees in our public sector business
(16% of Germany net fees) decreased by 8%.
Although conditions were tough, and after several years of significantly
outperforming the market, in FY25 we further improved our market-leading share
in Germany. Fees with outsource / MSP clients were up modestly in the year,
demonstrating greater resilience than more transactional parts of the market,
and overall we are very well-positioned to benefit from recovery when it
comes.
Significant actions were also taken to restructure Germany, notably in our
Statement of Works business during H1, and details of the resulting
exceptional costs are provided in notes 3 and 4. Non-consultant headcount
reduced as we delivered back-office efficiencies. Consultant headcount
decreased by 13% YoY and, driven by our ongoing resource allocation
initiatives, consultant net fee productivity increased by 1% YoY.
United Kingdom & Ireland
A return to modest profit in H2 after significant actions to better position
the business
Growth
Year ended 30 June 2025 2024 Reported LFL
(In £s million)
Net fees ((1)) 192.2 225.7 (15)% (15)%
Pre-exceptional operating loss ((2)) (5.8) 6.4 (191)% (191)%
Conversion rate ((3)) (3.0)%
2.8%
Period-end consultant headcount 1,285 1,629 (21)%
In the United Kingdom & Ireland ("UK&I"), net fees decreased by 15% to
£192.2 million. The division reported an operating loss((2)) of £5.8 million
(FY24: £6.4 million profit) at a conversion rate of minus 3.0% (FY24: 2.8%)
but, driven by our actions to address productivity and the operating cost
base, returned to modest profitability in H2 having made a loss of £6.5
million in H1.
Temp & Contracting net fees (59% of UK&I) decreased by 12% with
relative resilience in the private sector but tougher market conditions in the
public sector. Volumes were down 10% and the mix of price and margin down 2%.
Our Perm business experienced challenging market conditions across the private
and public sector and a clear step-down in Q4. Net fees decreased by 18%, with
volumes down 21%, partially offset by a 3% increase in average Perm fee.
Significant actions were taken during the year to restructure the UK&I
appropriately for market conditions and to better position the business going
forwards. We have more actively managed our less productive consultant
population to transition to a more focused core and secured structural savings
in front and back-office functions. Since June 2024, we have reduced our
office footprint by 19%, closing 16 offices, delayered our management
structure, and closed Emposo (our Statement of Works business). Details of the
resulting exceptional costs are provided in note 3 & 4.
All UK regions traded broadly in line with the overall UK&I business,
except for Yorkshire and North, down 31%, and South West, down 21%. Our
largest region of London decreased by 11%, while Ireland declined by 23%.
Direct outsourced net fees with Enterprise clients performed strongly, up 8%.
Our largest UK&I specialism of Accountancy & Finance decreased by 17%,
with Construction & Property down 8%. Technology and Office Support
decreased by 20% and 24% respectively.
Consultant headcount decreased by 21% YoY, including a 15% reduction in H2 25.
Consultant net fee productivity increased by 3% YoY in FY25 including 9% in
H2.
Australia & New Zealand
Good progress in driving improved productivity despite tough market conditions
Growth
Year ended 30 June 2025 2024 Reported LFL
(In £s million)
Net fees ((1)) 116.2 139.7 (17)% (13)%
Pre-exceptional operating profit ((2)) 3.6 11.5 (69)% (67)%
Conversion rate ((3)) 3.1% 8.2%
Period-end consultant headcount 675 729 (7)%
In Australia & New Zealand ("ANZ"), net fees decreased by 13% to £116.2
million, with operating profit((2)) down 67% to £3.6 million. This
represented a conversion rate of 3.1% (FY24: 8.2%). Currency impacts were
negative in the year, decreasing net fees by £5.6 million and operating
profit by £0.6 million.
Temp & Contracting net fees (69% of ANZ) decreased by 8%, with volumes
down 13%, but remained broadly stable through the second half. Perm net fees
decreased by 22%, with volumes down 28%. The private sector (64% of ANZ net
fees), declined by 10%, with public sector more challenging with net fees down
19%.
Although conditions in ANZ remain challenging, we increased our market share
in Australia and our management team has increased accountability and
alignment to a performance-based culture. Consultant net fee productivity
improved by 8% YoY to its highest level since FY22. We have removed split
Perm/Temp desks, more clearly differentiated between 180 and 360 degree
consultants, and moved up the value chain in Temp & Contracting. In the
second half we intensified our initiatives to target high skilled roles in the
most in-demand job categories with faster growing end markets.
Australia, 94% of ANZ, saw net fees decrease by 12%. New South Wales and
Victoria decreased by 17% and 19% respectively. Queensland fell by 3%, with
ACT down 11%. At the ANZ specialism level, Construction & Property (19% of
net fees), decreased by 15%, with Technology down 8%. Accountancy &
Finance decreased by 19%. New Zealand net fees decreased by 30%.
ANZ consultant headcount declined by 7% YoY. Driven by our focus on resource
allocation, consultant net fee productivity increased by 8% YoY in FY25.
Rest of World
Loss-making as Northern Europe weakness offsets improved North America
profitability
Growth
Year ended 30 June 2025 2024 Reported LFL
(In £s million)
Net fees ((1)) 355.1 396.4 (10)% (8)%
Pre-exceptional operating loss ((2)) (4.3) 19.2 (122)% (123)%
Conversion rate ((3)) (1.2)% 4.8%
Period-end consultant headcount 2,486 2,829 (12)%
Net fees in our Rest of World ("RoW") division, which comprises 26 countries,
decreased by 8% YoY. Temp & Contracting (42% of RoW) performed well, with
growth flat YoY and was positive in five of our Focus countries. Perm declined
by 14% as markets remained challenging, particularly in Northern Europe.
The division reported an operating loss((2)) of £4.3 million (FY24: £19.2
million profit), including a loss in H2 of £7.4 million. The loss was
primarily driven by weakness in Northern Europe during the second half of the
year. Currency impacts were negative in the year, reducing net fees by £9.8
million and operating profit by £0.4 million.
EMEA ex-Germany (62% of RoW) net fees decreased by 11%. France, our largest
RoW country, decreased by 19% as activity levels slowed through the year,
particularly in Q4 where Perm slowed sharply, and in response we took decisive
action to address productivity and costs including changes to the local
management team and closure of a number of offices. Southern Europe was more
resilient, with Portugal and Spain both up 1% and Italy down 4%. Belgium,
Switzerland and UAE decreased by 16%, 14% and 25% respectively. In response to
market conditions, we continued to manage consultant headcount in the region,
reporting a 14% decrease YoY. Overall, the EMEA ex-Germany region made a loss
of £6.9 million in the year (FY24: £20.7 million profit).
The Americas (22% of RoW) was resilient with net fees up 1% YoY, led by growth
in North America where Canada and the US were up 10% and 3% respectively.
After a refocusing of the US business in FY24, productivity increased 38% YoY,
returning to profitability from a loss-making position in the prior year.
Latam markets were more challenging, down 20% YoY, we have now completed the
closure of our Chile and Colombia businesses and refocused our Brazil and
Mexico operations by creating flagship offices in Sao Paulo and Mexico City.
North America delivered overall profit of £1.2 million, offset by losses of
£1.6 million in Latam, but we expect the latter will be profitable following
the restructure.
Asia (16% of RoW) net fees decreased by 6%. Our largest business within the
region, Japan was down 7% with Malaysia also down 7%, and Hong Kong down 28%.
This was partially offset by growth in Mainland China and India, up 7% and 38%
respectively. Overall, Asia delivered £3.0 million of operating profit in
year, down 3% YoY.
Overall consultant headcount in the RoW division decreased by 12% YoY. EMEA
ex-Germany consultant headcount decreased by 14%, the Americas decreased by
19% and Asia was down 1%.
Purpose, Net Zero, Equity and our Communities
Our purpose is to benefit society by investing in lifelong partnerships that
empower people and organisations to succeed, creating opportunities and
improving lives. Becoming lifelong partners to millions of people and
thousands of organisations also helps to make our business sustainable. Our
core company value is that we should always strive to 'do the right thing' by
acting in the best interests of our candidates, clients, colleagues and
communities. Linked to this and our commitment to Environmental, Social &
Governance (ESG) matters, Hays has shaped its Sustainability Framework around
the United Nations Sustainable Development Goals (UNSDG's), and further
details can be found on pages 48-78 of our FY24 Annual report
(https://www.haysplc.com/investors/annual-report-2024) .
Treasury management
The Group successfully completed a new revolving credit facility in October
2024 at the increased value of £240 million from £210 million. The new
facility will expire in October 2029 with options to extend by a further two
years by agreement. The financial covenants within the facility remain
unchanged and require the interest cover ratio (EBITDA to interest) to be at
least 4:1 and its leverage ratio (net debt to EBITDA) to be no greater than
2.5:1. The interest rate of the facility is based on a ratchet mechanism with
a margin payable over risk-free rate plus credit adjustment spread of between
0.7% to 1.5%.
As at 30 June 2025, £145 million of the committed facility was undrawn (30
June 2024: £145 million of the committed facility was undrawn).
The Group's UK-based Treasury function manages the Group's currency and
interest rate risks in accordance with policies and procedures set by the
Board and is responsible for day-to-day cash management; the arrangement of
external borrowing facilities; and the investment of surplus funds. The
Treasury function does not operate as a profit centre or use derivative
financial instruments for speculative purposes.
Principal risks facing the business
Hays plc operates a comprehensive enterprise risk management framework, which
is monitored and reviewed by the Board. There are a number of potential risks
and uncertainties that could have a material impact on the Group's financial
performance and position. These include risks relating to the cyclical nature
of our business and inflation, business model, talent recruitment and
retention, compliance, reliance on technology, cyber security, data protection
and contracts. These risks and our mitigating actions are set out in the 2024
Annual Report
(https://www.haysplc.com/~/media/Files/H/Hays/annual-reports/ar-2024/hays-fy24-annual-report.pdf)
, which remain relevant and will be updated in the 2025 Annual Report after
publication in September. Due to the scale and breadth of our multi-year
transformation projects in Finance and Technology, the Group has recognised an
additional principal risk in FY25 relating to business transformation. There
are no other additional risks since this date which impact Hays' financial
position or performance, although as noted earlier in this statement, with
macroeconomic uncertainties increasing, we are closely monitoring our activity
levels and KPI's.
This preliminary report was approved and authorised for issue by the Board of
Directors on 20 August 2025.
Dirk
Hahn
James Hilton
Chief Executive
Officer
Chief Financial Officer
Hays plc
20 Triton Street
London
NW1 3BF
haysplc.com/investors
Cautionary statement
This Preliminary Report (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
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE
2025 2025 2024 2024
Before Exceptional Before Exceptional
exceptional items exceptional items
(In £s million) Note items (note 4) 2025 items (note 4) 2024
Turnover 3,5 6,607.0 - 6,607.0 6,949.1 - 6,949.1
Net fees ((1)) 3,5 972.4 - 972.4 1,113.6 - 1,113.6
Administrative expenses ((2)) 5 (926.8) (30.7) (957.5) (1,008.5) (80.0) (1,088.5)
Operating profit 3 45.6 (30.7) 14.9 105.1 (80.0) 25.1
Net finance charge ((3)) 6 (13.4) - (13.4) (10.4) - (10.4)
Profit before tax 32.2 (30.7) 1.5 94.7 (80.0) 14.7
Tax 7 (11.3) 2.0 (9.3) (30.7) 11.1 (19.6)
Profit/(loss) after tax 20.9 (28.7) (7.8) 64.0 (68.9) (4.9)
Profit/(loss) attributable to equity holders of the parent company 20.9 (28.7) (7.8) 64.0 (68.9) (4.9)
Earnings per share (pence)
- Basic 9 1.31p (1.80p) (0.49p) 4.03p (4.34p) (0.31p)
- Diluted 9 1.31p (1.80p) (0.49p) 4.00p (4.31p) (0.31p)
((1)) Net fees comprise turnover less remuneration of temporary workers and
other recruitment agencies.
((2)) Administrative expenses include impairment loss on trade receivables of
£0.5 million (2024: £1.4million).
((3)) Net finance charge is stated net of interest received on bank deposits
of £2.2 million (2024: £3.2 million).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE
(In £s million) 2025 2024
Loss for the year (7.8) (4.9)
Items that will not be reclassified subsequently to profit or loss:
Actuarial remeasurement of defined benefit pension schemes (45.9) (23.2)
Tax relating to components of other comprehensive income 12.2 5.6
(33.7) (17.6)
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustments (9.3) (4.1)
Other comprehensive loss for the year net of tax (43.0) (21.7)
Total comprehensive loss for the year (50.8) (26.6)
Attributable to equity shareholders of the parent company (50.8) (26.6)
CONSOLIDATED BALANCE SHEET
AT 30 JUNE
(In £s million) Note 2025 2024
Non-current assets
Goodwill 182.0 182.9
Other intangible assets 45.8 37.7
Property, plant and equipment 21.6 25.2
Right-of-use assets 10 166.6 162.2
Deferred tax assets 44.6 25.4
Retirement benefit surplus 11 - 19.4
460.6 452.8
Current assets
Trade and other receivables 1,134.1 1,194.5
Corporation tax debtor 5.9 9.1
Cash and cash equivalents 168.5 160.9
1,308.5 1,364.5
Total assets 1,769.1 1,817.3
Current liabilities
Trade and other payables (931.9) (926.6)
Bank overdrafts ((1)) (36.5) (39.1)
Lease liabilities 10 (39.8) (44.2)
Corporation tax liabilities (14.8) (13.0)
Provisions 12 (25.6) (24.0)
(1,048.6) (1,046.9)
Non-current liabilities
Bank loans (95.0) (65.0)
Lease liabilities 10 (140.9) (135.1)
Provisions 12 (17.9) (12.7)
(253.8) (212.8)
Total liabilities (1,302.4) (1,259.7)
Net assets 466.7 557.6
Equity
Called up share capital 16.0 16.0
Share premium 369.6 369.6
Merger reserve - 28.8
Capital redemption reserve 3.4 3.4
Retained earnings 12.1 62.0
Cumulative translation reserve 44.5 53.9
Equity reserve 21.1 23.9
Total equity 466.7 557.6
((1)) Due to a change in accounting policy (see note 2), £39.1million has
been re-presented in the comparative information from cash and cash
equivalents to bank overdrafts, representing overdraft balances where the
Group has a legal right of offset as part of the Group's cash pooling
arrangements. This restatement does not impact the reported profit, earning
per share, net assets, net cash or on the available headroom on the Group's
revolving credit facility.
The Consolidated Financial Statements of Hays plc, registered number 2150950,
were approved by the Board of Directors and authorised for issue on 20 August
2025.
Signed on behalf of the Board of Directors
D HAHN J HILTON
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
(In £s million) Called up share capital Share premium Merger reserve((1)) Capital redemption reserve Retained earnings Cumulative translation reserve Equity reserve((2)) Total equity
At 1 July 2024 16.0 369.6 28.8 3.4 62.0 53.9 23.9 557.6
Currency translation adjustments - - - - - (9.4) - (9.4)
Remeasurement of defined benefit pension schemes - - - - (45.9) - - (45.9)
Tax relating to components of other comprehensive income - - - - 12.2 - - 12.2
Net expense recognised in other comprehensive income - - - - (33.7) (9.4) - (43.1)
Loss for the year - - - - (7.8) - - (7.8)
Total comprehensive income for the year - - - - (41.5) (9.4) - (50.9)
Dividends paid - - (28.8) - (19.0) - - (47.8)
Purchase of own shares - - - - - - - -
Share-based payments charged to the income statement - - - - - - 7.8 7.8
Share-based payments settled on vesting - - - - 10.6 - (10.6) -
At 30 June 2025 16.0 369.6 - 3.4 12.1 44.5 21.1 466.7
FOR THE YEAR ENDED 30 JUNE 2024
(In £s million) Called up share capital Share premium Merger reserve((1)) Capital redemption reserve Retained earnings Cumulative translation reserve Equity reserve((2)) Total equity
At 1 July 2023 16.0 369.6 43.8 3.4 155.4 58.0 24.1 670.3
Currency translation adjustments - - - - - (4.1) - (4.1)
Remeasurement of defined benefit pension schemes - - - - (23.2) - - (23.2)
Tax relating to components of other comprehensive income - - - - 5.6 - - 5.6
Net expense recognised in other comprehensive income - - - - (17.6) (4.1) - (21.7)
Loss for the year - - - - (4.9) - - (4.9)
Total comprehensive income for the year - - - - (22.5) (4.1) - (26.6)
Dividends paid - - (15.0) - (68.3) - - (83.3)
Purchase of own shares - - - - (12.3) - - (12.3)
Share-based payments charged to the income statement - - - - - - 9.5 9.5
Share-based payments settled on vesting - - - - 9.7 - (9.7) -
At 30 June 2024 16.0 369.6 28.8 3.4 62.0 53.9 23.9 557.6
((1)) The Merger reserve was generated under Section 612 of the Companies Act
2006, as a result of the cash box structure used in the equity placing of new
shares issued during the year ended 30 June 2020.
((2)) The Equity reserve is generated as a result of IFRS 2 'Share-based
payments'.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE
(In £s million) 2025 2024
Operating profit 14.9 25.1
Adjustments for:
Exceptional items (note 4) 30.7 80.0
Depreciation of property, plant and equipment 10.2 11.1
Depreciation of right-of-use assets 44.7 46.0
Amortisation of other intangible assets 7.7 9.2
Loss on disposal of property, plant and equipment 0.3 -
Net movements in provisions (excluding exceptional items) 1.5 0.2
Share-based payments (excluding exceptional items) 7.7 8.2
102.8 154.7
Operating cash flow before movement in working capital 117.7 179.8
Movement in working capital:
Decrease in trade and other receivables 51.3 43.2
Increase/(decrease) in trade and other payables 6.8 (59.7)
Movement in working capital 58.1 (16.5)
Cash generated by operations 175.8 163.3
Cash paid in respect of exceptional items (29.9) (22.9)
Pension scheme deficit funding ((3)) (23.1) (18.2)
Income taxes paid (12.9) (26.4)
Net cash inflow from operating activities 109.9 95.8
Investing activities
Purchase of property, plant and equipment (7.0) (7.6)
Purchase of Other intangible assets (15.7) (15.8)
Interest received 2.2 3.2
Net cash used in investing activities (20.5) (20.2)
Financing activities
Interest paid (9.5) (7.2)
Lease liability principal repayment (47.5) (51.0)
Purchase of own shares - (12.3)
Equity dividends paid (47.8) (83.3)
Increase in bank loans and overdrafts 30.0 55.0
Repayment on refinancing of credit facility ((1)) (135.0) -
Drawdown on refinancing of credit facility ((1)) 135.0 -
Net cash used in financing activities (74.8) (98.8)
Net increase/(decrease) in cash, cash equivalents and bank overdrafts 14.6 (23.2)
Cash, cash equivalents and bank overdrafts at beginning of year ((2)) 121.8 145.6
Effect of foreign exchange rate movements (4.4) (0.6)
Cash, cash equivalents and bank overdrafts at end of year ((2)) 132.0 121.8
((1)) Under IAS 7 'Statement of Cash Flows', upon refinancing the revolving
credit facility in October 2024, the repayment of the old facility and
drawdown under the new facility are required to be disclosed separately on the
face of the Consolidated Cash Flow Statement.
((2)) Cash, cash equivalents and bank overdrafts comprises cash and cash
equivalents of £168.5 million (2024: £160.9 million) net of bank overdrafts
of £36.5 million (2024: 39.1 million).
((3)) Pension contributions comprise £8.4 million in respect of pension
deficit contribution (2024: £18.2 million), £12.6 million related to the
full pension buy-in completed in December 2024 (2024: £nil), and a further
£2.1 million of expenses and true-ups (2024: £nil).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 STATEMENT UNDER S435 - PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information set out in this preliminary announcement does not
constitute statutory accounts for the years ended 30 June 2025 or 30 June
2024, as defined in Section 435 (1) and (2) of the Companies Act 2006, but is
derived from those accounts. The statutory accounts for 2024 have been
delivered to the Registrar of Companies and those for 2025 will be delivered
following the Company's Annual General Meeting. The Group's Auditor has
reported on those accounts; their reports were unqualified, did not draw
attention to any matters by way of emphasis without qualifying their report
and did not contain statements under Section 498 (2) or (3) of the Companies
Act 2006.
2 BASIS OF PREPARATION
Whilst the financial information included in this preliminary announcement has
been prepared in accordance with UK-adopted International Accounting
Standards, this announcement does not itself contain sufficient information to
comply with IFRS. The accounting policies applied in preparing this financial
information are consistent with the Group's financial statements for the year
ended June 2024; there have been no new standards or improvements to existing
standards that are mandatory for the first time in the Group's accounting
period beginning on 1 July 2024 and no new standards have been early adopted.
Going Concern
The Group successfully refinanced its revolving credit facility in October
2024 at the increased value of £240 million. The new facility will expire in
October 2029 with options to extend by a further two years by agreement. At 30
June 2025, £145 million of the facility was undrawn, with the Group at an
overall net cash position of £37.0 million.
The Group's business activities, together with the factors likely to affect
its future development, performance and financial position, including its cash
flows and liquidity position are described in this preliminary results
announcement for the year ended 30 June 2025. The Directors have formed the
judgment that there is reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable future. As
a result the Directors continue to adopt the Going Concern basis in the
preparation of the Consolidated Financial Statements.
As in prior years, the Board undertook a strategic business review in the
current year which took into account the Group's current financial position
and the potential impact of the principal risks set out in the Annual Report.
In addition, and in making this statement, the Board carried out a robust
assessment of the principal risks facing the Group, including those that would
threaten the Group's business model, future performance and liquidity. While
the review has considered all the principal risks identified by the Group, the
resilience of the Group to the occurrence of these risks in severe yet
plausible scenarios has been evaluated.
Financial position
At 30 June 2025, the Group had net cash of £37.0 million compared to net cash
of £56.8 million at 30 June 2024. The Group had a good working capital
performance, with significant management focus on cash collection and average
trade debtor days remained below pre-Pandemic levels at 37 days (2024: 36
days), with the increase versus prior year being caused by the continued
relative resilience of our Enterprise clients that typically have longer
payment terms. The Group has a history of strong cash generation, tight cost
control and flexible workforce management.
Assessment of Going Concern
The Board approves the annual budget at the start of the financial year, which
is based on submissions from the Group's divisions, following a thorough
review process. The Board also reviews monthly management reports and
quarterly forecasts. The output of the planning and budgeting processes has
been used to perform base case projections for going concern purposes, under
prudent assumptions:
· FY26 net fees and operating profit in-line with the approved budget, which
assumes subdued but benign market conditions
· Modest, single digit net fee growth in FY27
· Some improvements in working capital, resulting from initiatives implemented
by management
· Future dividends are in-line with current policy
· No material changes to the Group structure
A sensitivity analysis of the Group's cash flow was performed to model the
potential effects of a range of severe, but plausible, downside scenarios
against the base case projections, with a range of recovery scenarios
considered. The 'Stress Case' scenario assumes that the Group experiences a
severe further deterioration in market conditions in H1 FY26.
The Directors are satisfied that the Group would be able to respond to such
scenarios with a range of measures including, but not limited to:
· Quickly decreasing headcount through natural attrition
· Reductions in discretionary spend
· Deferral of capital expenditure
· Further rationalisation or restructuring of business operations
· Reduction and elimination of cash distributions to shareholders
Given the nature of the Temporary and Contract recruitment business,
significant working capital inflows typically arise in periods of severe
downturn, thus protecting liquidity as was the case during the Global
Financial Crisis of 2008/09 and which we again experienced during the Covid-19
pandemic, and which we experience in the year ended 30 June 2025.
Set against these downside trading scenarios, the Board also considered key
mitigating factors including the geographic and sectoral diversity of the
Group, its balanced business model across Temporary, Permanent and Contract
recruitment services, and the focus on building a more resilient business,
underpinned by the Group's clear strategy and focus on operational rigour.
Furthermore, whilst our key markets have become increasingly challenging
throughout FY25, skill and talent shortages are widespread across our major
markets and are expected to remain so for the foreseeable future; the
Directors are therefore satisfied that the demand for recruitment services
will continue, supporting the resilience of our business model.
The Directors also considered a reverse stress test scenario to understand the
reduction required to cause a breach of financial covenants or loss of
solvency. The conclusion from the reverse stress test is that the likelihood
of the scenarios occurring is remote and therefore does not represent a
realistic threat to the going concern assumption of the Group.
The Group has sufficient financial resources which, together with internally
generated cash flows, will continue to provide sufficient sources of liquidity
to fund its current operations, including its contractual and commercial
commitments, any proposed dividends, and will remain within its banking
covenants. The Group is therefore well-placed to manage its business risks.
After making enquiries and in consideration of the above, the Directors have
formed the judgment at the time of approving the financial statements, that
there is a reasonable expectation that the Group has adequate resources to
continue in operational existence throughout the Going Concern period, being
at least 12 months from the date of approval of the Consolidated Financial
Statements. For this reason, they continue to adopt the going concern basis of
accounting in preparing the Consolidated Financial Statements.
Change in accounting policy
As part of the Group's day to day treasury management, the Group has in place
a cash pooling arrangement in the UK. Under this arrangement, the Group choses
to maintain certain bank accounts in an overdraft position for reasons of
operating efficiency. The Group has a legal right of offset within the cash
pool arrangement and does not pay interest on overdrafts, with the overall
cash pool arrangement being in a cash positive position. Given the increased
regulatory focus on grossing up of overdrafts within cash pool arrangements
(under IAS 32, paragraph 42), management have reviewed the Group's policy on
offsetting overdraft balances with cash and cash equivalents and has chosen to
change its accounting policy and has presented cash held in bank accounts
separately from overdrawn amounts in the Consolidated Balance Sheet.
There is no impact on the Group's level of debt or on the Revolving Credit
Facility headroom, nor is there any change to profit, earnings per share, net
assets or cash flow for the year ended 30 June 2024.
The Consolidated Balance Sheet at 30 June 2024 has been restated as follows:
(In £s million) As previously reported Impact of restatement Restated
2024
2024
2024
Current Assets
Cash and cash equivalents 121.8 39.1 160.9
Current Liabilities
Bank overdrafts - (39.1) (39.1)
The impact on the opening Consolidated Balance sheet as at 1 July 2023 is as
follows:
(In £s million) As previously reported Impact of restatement Restated
2023
2023
2023
Current Assets
Cash and cash equivalents 145.6 35.4 181.0
Current Liabilities
Bank overdrafts - (35.4) (35.4)
3 SEGMENTAL INFORMATION
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the chief
operating decision maker to allocate resources to the segment and to assess
their performance.
As a result, the Group segments the business into four regions, Germany,
United Kingdom & Ireland, Australia & New Zealand and Rest of World.
There is no material difference between the segmentation of the Group's
turnover by geographic origin and destination.
The Group's operations comprise one class of business, that of qualified,
professional and skilled recruitment.
(In £s million) Note 2025 2024
Turnover
Germany 1,751.1 1,900.3
United Kingdom & Ireland 1,516.2 1,594.4
Australia & New Zealand 1,110.2 1,286.9
Rest of World 2,229.5 2,167.5
Group 5 6,607.0 6,949.1
(In £s million) Note 2025 2024
Net fees
Germany 308.9 351.8
United Kingdom & Ireland 192.2 225.7
Australia & New Zealand 116.2 139.7
Rest of World 355.1 396.4
Group 5 972.4 1,113.6
2025 2024
Before 2025 Before 2024
exceptional Exceptional exceptional Exceptional
(In £s million) items items 2025 items items 2024
Operating profit
Germany 52.1 (9.0) 43.1 68.0 (23.6) 44.4
United Kingdom & Ireland (5.8) (6.3) (12.1) 6.4 (7.3) (0.9)
Australia & New Zealand 3.6 (1.3) 2.3 11.5 (5.3) 6.2
Rest of World (4.3) (14.1) (18.4) 19.2 (43.8) (24.6)
Group 45.6 (30.7) 14.9 105.1 (80.0) 25.1
4 EXCEPTIONAL ITEMS
During the year, the Group incurred an exceptional charge of £30.7 million
(year ended 30 June 2024: £80.0 million) being administrative in nature.
During the year, the Group undertook the restructure of several country
business operations. In Germany, the United Kingdom & Ireland and in
France we restructured our back-office functions and closed several business
lines. We also closed 16 offices in the United Kingdom & Ireland and four
offices in France. In addition, we restructured the operations of the
Statement of Works business in Germany and closed the Statement of Works
business in the United Kingdon & Ireland. In the Americas we closed our
operations in the Chile and Colombia businesses and our offices in Rio de
Janeiro and Campinas, to focus on two high potential markets by creating
flagship offices in Sao Paulo and Mexico City. We also restructured our Czech
business, to only service enterprise clients in Temp and Contracting roles,
with no Perm or SME activities continuing, resulting in the closure of two
offices and all back-office functions. The restructuring exercises led to the
redundancy of a number of employees, including senior management and
back-office positions at a combined cost of £17.7 million.
The Group also incurred a £13.0 million exceptional charge in relation to the
multi-year Technology Transformation and Finance Transformation programmes,
comprising both staff costs and third-party costs. Despite being multi-year,
the transformation projects are considered to be one-off in nature due to
their scale and impact, as they aim to fundamentally change how the support
functions will operate across the Group. The restructuring costs were incurred
as part of the Group's strategy to build a structurally more resilient
business and to better position the business going forward and are considered
exceptional given their size and impact on business operations.
During the year ended 30 June 2024, the Group incurred an exceptional charge
of £80.0 million (of which £27.9 million was incurred in the six months
ended 31 December 2023). Following the appointment of the new CEO, Dirk Hahn,
and in response to increasingly challenging market conditions and a clear
slowdown in most markets, we restructured the business operations of many
countries across the Group, to better align business operations to market
opportunities and reduce operating costs. The restructuring exercise led to
the redundancy of a number of employees, including senior and operational
management and back-office positions and the closure of 17 offices. This
resulted in the Group incurring a restructuring cost of £42.2 million. The
restructuring costs were expected to generate significant cost savings and
were considered exceptional given their size and impact on business
operations. The remaining £37.8 million was non-cash, comprising a £22.5
million charge relating to impairment of intangible assets and a £15.3
million charge related to the partial impairment of goodwill in the US
business.
The cash impact of the exceptional charge in the year was £17.5 million, with
an additional £12.4 million of cash payments in respect of the prior year
exceptional charge, including £1.3 million of lease liability repayments
relating to right-of-use assets that were impaired in the prior year.
The exceptional charge generated a net £2.0 million tax credit (2024: tax
credit of £11.1 million).
5 OPERATING PROFIT
The following costs are deducted from turnover to determine net fees:
(In £s million) 2025 2024
Turnover 6,607.0 6,949.1
Remuneration of temporary workers (4,619.6) (4,995.4)
Remuneration of other recruitment agencies (1,015.0) (840.1)
Net fees 972.4 1,113.6
Operating profit is stated after charging the following items to net fees of
£972.4 million (2024: £1,113.6 million):
2025 2024
Before 2025 Before 2024
exceptional Exceptional exceptional Exceptional
(In £s million) items items 2025 items items 2024
Staff costs 702.7 18.5 721.2 789.4 30.2 819.6
Amortisation of intangible assets 7.7 - 7.7 9.2 - 9.2
Depreciation of property, plant and equipment 10.2 - 10.2 11.1 - 11.1
Depreciation of right-of-use assets (note 10) 44.7 - 44.7 46.0 - 46.0
Loss on disposal of property, plant and equipment 0.3 - 0.3 - 0.4 0.4
Impairment loss on goodwill 1.0 - 1.0 - 15.3 15.3
Impairment of property leases - 1.7 1.7 - 4.9 4.9
Impairment of intangible assets - - - - 22.5 22.5
Short-term leases and leases of low-value assets 3.4 - 3.4 3.5 - 3.5
Impairment loss on trade receivables 0.5 - 0.5 1.4 - 1.4
Auditor's remuneration:
- for statutory audit services 2.6 - 2.6 2.4 - 2.4
- for other services 0.3 - 0.3 0.3 - 0.3
Other external charges 153.4 10.5 163.9 145.2 6.7 151.9
Administrative expenses 926.8 30.7 957.5 1,008.5 80.0 1,088.5
Within exceptional items in the table above, staff costs (£18.5 million),
impairment of right-of-use assets (£1.7 million) and other external charges
(£10.5 million) total £30.7 million and represent the restructuring charge
as disclosed in note 4.
In the prior year, within exceptional items in the table above, staff costs
(£30.2 million), loss on disposal of property, plant and equipment (£0.4
million), impairment of right-of-use assets (£4.9 million) and other external
charges (£6.7 million) total £42.2 million and represent the restructuring
charge as disclosed in note 4.
6 NET FINANCE CHARGE
(In £s million) 2025 2024
Interest received on bank deposits 2.2 3.2
Interest payable on bank loans and overdrafts (9.5) (7.2)
Interest on lease liabilities (note 10) (4.6) (5.0)
Pension Protection Fund levy - (0.1)
Net interest expense on defined benefit pension schemes (1.5) (1.3)
Net finance charge (13.4) (10.4)
7 TAX
The income tax expense for the year can be reconciled to the accounting profit
as follows:
2025 2024
Before 2025 Before 2024
exceptional Exceptional exceptional Exceptional
(In £s million) items items 2025 items items 2024
Profit before tax 32.2 (30.7) 1.5 94.7 (80.0) 14.7
Income tax expense calculated at 25.0% (2024: 25.0%) (8.1) 7.7 (0.4) (23.7) 20.0 (3.7)
Items not taxable or non-deductible for tax (1.5) - (1.5) (6.1) (0.7) (6.8)
Changes in recognition of deferred tax in relation to losses (3.1) (5.4) (8.5) (3.4) (2.2) (5.6)
Changes in recognition of deferred tax in relation to temporary differences 1.1 (0.5) 0.6 (2.6) (7.0) (9.6)
Effect of different tax rates of subsidiaries operating in other jurisdictions (1.1) 0.2 (0.9) (0.8) 1.0 0.2
Current tax related to Pillar Two income taxes (1.0) - (1.0) - - -
Effect of share-based payment charges and share options (0.4) - (0.4) (0.6) - (0.6)
Income tax recognised in the current year (14.1) 2.0 (12.1) (37.2) 11.1 (26.1)
Adjustments recognised in the current year in relation to the current tax of 2.7 - 2.7 4.9 - 4.9
prior years
Adjustments to deferred tax in relation to prior years 0.1 - 0.1 1.6 - 1.6
Income tax expense recognised in the Consolidated Income Statement (11.3) 2.0 (9.3) (30.7) 11.1 (19.6)
Effective tax rate for the year 35.1% 6.5% 620.0% 32.4% 13.9% 133.3%
The tax rate used for the reconciliation above for the year ended 30 June 2025
is the corporation tax rate of 25.0% (2024: 25.0%), payable by corporate
entities in the United Kingdom on taxable profits under tax law in that
jurisdiction. The Group operates in jurisdictions which have tax rates higher
than the UK statutory tax rate, the most significant being Germany and
Australia with statutory rates of 31.5% and 30% respectively, the impact of
which is shown in the above reconciliation under effect of different tax rates
of subsidiaries operating in other jurisdictions.
8 DIVIDENDS
The following dividends were paid by the Group and have been recognised as
distributions to equity shareholders in the year:
2025 2024
(pence per 2025 (pence per 2024
share) (£s million) share) (£s million)
Prior year final dividend 2.05 32.6 2.05 32.6
Prior year special dividend - - 2.24 35.7
Current year interim dividend 0.95 15.2 0.95 15.0
Total 3.00 47.8 5.24 83.3
The following dividends have been proposed by the Group in respect of the
accounting year presented:
2025 2024
(pence per 2025 (pence per 2024
share) (£s million) share) (£s million)
Interim dividend (paid) 0.95 15.2 0.95 15.0
Final dividend (proposed) 0.29 4.6 2.05 32.5
Total 1.24 19.8 3.00 47.5
The final dividend for 2025 of 0.29 pence per share (£4.6 million) will be
proposed at the Annual General Meeting on 19 November 2025 and has not been
included as a liability. If approved, the final dividend will be paid on 26
November 2025 to shareholders on the register at the close of business on 17
October 2025.
9 EARNINGS PER SHARE
Weighted
average
number of Per share
Earnings shares amount
For the year ended 30 June 2025 (£s million) (million) (pence)
Before exceptional items:
Basic earnings per share 20.9 1,590.2 1.31
Dilution effect of share options - 10.8 -
Diluted earnings per share 20.9 1,601.0 1.31
After exceptional items:
Basic earnings per share (7.8) 1,590.2 (0.49)
Dilution effect of share options - 10.8 -
Diluted earnings per share (7.8) 1,601.0 (0.49)
Weighted
average
number of Per share
Earnings shares amount
For the year ended 30 June 2024 (£s million) (million) (pence)
Before exceptional items:
Basic earnings per share 64.0 1,586.6 4.03
Dilution effect of share options - 13.7 (0.03)
Diluted earnings per share 64.0 1,600.3 4.00
After exceptional items:
Basic earnings per share (4.9) 1,586.6 (0.31)
Dilution effect of share options - 13.7 -
Diluted earnings per share (4.9) 1,600.3 (0.31)
The weighted average number of shares in issue for the current and prior years
exclude shares held in treasury.
Reconciliation of earnings
(In £s million) 2025 2024
Earnings before exceptional items 20.9 64.0
Exceptional items (note 4) (30.7) (80.0)
Tax credit on exceptional items (note 7) 2.0 11.1
Total earnings (7.8) (4.9)
10 LEASE ACCOUNTING
Right-of-use assets
Total
Motor Other lease Lease
(In £s million) Property vehicles assets assets liabilities
At 1 July 2024 147.8 14.3 0.1 162.2 (179.3)
Exchange adjustments 1.9 0.2 (0.1) 2.0 3.2
Lease additions 46.6 5.9 - 52.5 (52.5)
Lease disposals (3.4) (0.3) - (3.7) 3.7
Impairment of right-of-use assets (1.7) - - (1.7) -
Depreciation of right-of-use assets (37.0) (7.7) - (44.7) -
Lease liability principal repayments - - - - 47.5
Lease liability repayments on previously impaired right-of-use assets - - - - 1.3
Interest on lease liabilities - - - - (4.6)
At 30 June 2025 154.2 12.4 - 166.6 (180.7)
(In £s million) 2025 2024
Current (39.8) (44.2)
Non-current (140.9) (135.1)
Total lease liabilities (180.7) (179.3)
11 RETIREMENT BENEFIT
(In £s million) 2025 2024
Surplus in the scheme brought forward 19.4 25.7
Administration costs (3.0) (3.0)
Employer contributions (towards funded and unfunded schemes) 23.1 18.2
Net interest income 1.5 1.7
Remeasurement of the net defined benefit (45.9) (23.2)
Transfer to provisions 4.9 -
Surplus in the scheme carried forward - 19.4
On 9 December 2024, Hays Pension Trustee Limited in agreement with Hays plc
entered into a £370 million bulk purchase annuity policy (buy-in) contract
with Pension Insurance Corporation plc ("PIC"). Building on the purchase of a
bulk annuity policy with Canada Life for a premium of £270.6 million on 6
August 2018, the new PIC policy fully insures the Scheme's remaining benefit
obligations. The impact of this transaction is reflected in the IAS 19
valuation as at 30 June 2025.
The Group's pension position under IAS 19 at 30 June 2025 has resulted in a
surplus of £nil (30 June 2024: surplus of £19.4 million, 31 December 2024:
surplus of £nil). The reduction in the surplus since 30 June 2024 is
primarily due to the impact of the full pension buy-in, as noted above. The
transfer to provisions of £4.9 million comprises the unfunded pension scheme
(£5.2 million), which was not part of the buy-in due to the members' benefits
being outside of the Registered Pension Regime, and the net impact of
anticipated post buy-in adjustments on the scheme (£0.3 million positive).
12 PROVISIONS
(In £s million) Retirement benefits Property Restructuring Legal, tax and other matters Total
At 1 July 2024 - 5.4 12.9 18.4 36.7
Charged to income statement - 1.4 29.0 1.0 31.4
Credited to income statement - - - (0.2) (0.2)
Utilised - (0.7) (28.6) - (29.3)
Transfer from Retirement benefits (note 11) 4.9 - - - 4.9
At 30 June 2025 4.9 6.1 13.3 19.2 43.5
(In £s million) 2025 2024
Current 25.6 24.0
Non-current 17.9 12.7
Total provisions 43.5 36.7
Restructuring provisions are as disclosed in note 4.
There are no individually material balances within this provision, and
management does not consider it reasonably possible that any of these balances
will change materially in the next 12 months.
13 LIKE-FOR-LIKE RESULTS
Like-for-like results represent organic growth/(decline) of operations at
constant currency. For the year ended 30 June 2025 these are calculated as
follows:
Foreign 2024
exchange at constant Organic
(In £s million) 2024 impact currency growth 2025
Net fees
Germany 351.8 (7.5) 344.3 (35.4) 308.9
United Kingdom & Ireland 225.7 (0.2) 225.5 (33.3) 192.2
Australia & New Zealand 139.7 (5.6) 134.1 (17.9) 116.2
Rest of World 396.4 (9.8) 386.6 (31.5) 355.1
Group 1,113.6 (23.1) 1,090.5 (118.1) 972.4
Foreign 2024
exchange at constant Organic
(In £s million) 2024 impact currency growth 2025
Operating profit
Germany 68.0 (1.4) 66.6 (14.5) 52.1
United Kingdom & Ireland 6.4 - 6.4 (12.2) (5.8)
Australia & New Zealand 11.5 (0.6) 10.9 (7.3) 3.6
Rest of World 19.2 (0.4) 18.8 (23.0) (4.3)
Group 105.1 (2.4) 102.7 (57.0) 45.6
14 DISAGGREGATION OF NET FEES
IFRS 15 requires entities to disaggregate revenue recognised from contracts
with customers into relevant categories that depict how the nature, amount and
cash flows are affected by economic factors. As a result, we consider the
following information relating to net fees to be relevant and should be
considered alongside note 3:
Germany United Kingdom & Ireland Australia & New Zealand Rest of World Group
Temporary placements 84% 59% 69% 42% 62%
Permanent placements 16% 41% 31% 58% 38%
Total 100% 100% 100% 100% 100%
Private sector 84% 71% 64% 99% 84%
Public sector 16% 29% 36% 1% 16%
Total 100% 100% 100% 100% 100%
Technology 33% 14% 17% 26% 25%
Accountancy & Finance 19% 19% 11% 11% 15%
Engineering 25% 1% 0% 8% 11%
Construction & Property 6% 18% 19% 9% 11%
Office Support 0% 8% 11% 4% 5%
Other 17% 40% 42% 42% 33%
Total 100% 100% 100% 100% 100%
15 SUPPLEMENTARY INFORMATION
Like-For-Like Quarterly Results Analysis By Division
Net fee growth versus same period last year:
Q1 Q2 Q3 Q4 FY
2025 2025 2025 2025 2025
Germany (13)% (13)% (9)% (5)% (10)%
United Kingdom & Ireland (20)% (14)% (13)% (13)% (15)%
Australia & New Zealand (20)% (14)% (11)% (10)% (13)%
Rest of World (9)% (9)% (7)% (9)% (8)%
Group (14)% (12)% (9)% (9)% (11)%
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