Hays Plc (LON:HAS) has announced its preliminary report for the year ended 30 June 2025.
DELIVERING STRATEGIC PROGRESS DESPITE CHALLENGING MARKETS
| Year ended 30 June (In £s million) | 2025 | 2024 | Actual growth | LFL 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, Hays Plc 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. |
Results presentation & webcast
Our results webcast will take place at 9.00am on 21 August 2025. To register for the webcast only, please click or copy https://edge.media-server.com/mmc/p/q22joifb.To register and be able to ask questions via our audio link, please click or copy this link https://register-conf.media-server.com/register/BI350f330e0af84c3bad0b94a5be62e905
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 |
