HAYS EXPECTS PROFITS AT TOP OF RANGE DESPITE WEAK JOBS MARKET

Recruiter Hays stated it expects to deliver operating profits before exceptional items at the "top" of a range between ££37 million and £46 million for the full year 2026. The announcement came as the company's share price rose 11.8 per cent to 40.08p in early trading on Friday, reaching a four-month high. Hays attributed the positive outlook to cost controls and productivity improvements that offset continued weakness in the wider recruitment sector. The London-based firm noted that "actions to deliver strong consultant net fee productivity growth and cost discipline continued to offset our lower net fees" during the first half of the year.

Net fees declined by 4 per cent in the three months to end of June, representing a slowdown in the rate of decline compared with earlier periods. Net fees were 8 per cent lower year-on-year in the UK and Ireland specifically. However, the company reported improved performance in its temporary and contracting business during the quarter. Hays indicated it plans to maintain headcount levels through the next quarter following significant staffing reductions made over the past year.

Mark Dearnley, chief executive, stated the company expected "full-year 2026 pre-exceptional operating profit will be at the top of the consensus range following a return to strong year-on-year growth in the second half." Hays acknowledged that wider economic uncertainty persists and anticipated "market conditions to remain challenging" in the near future. Adam Vettese, market analyst for eToro, said Hays was "doing a good job of managing what it can control in a difficult market." The company stressed it remains mindful of global economic headwinds affecting the recruitment sector.