The recruitment giant's latest quarter shows permanent hiring still under pressure, but temp staffing and North America offer a glimmer of recovery.
Hays (LSE: HAS) reported a 3% like-for-like decline in net fees for the three months to 30 September, an improvement on recent quarters, as resilience in temporary staffing and a return to growth in North America helped offset continued weakness in its core European markets.
The recruiter's permanent placements business remained the weak spot, down 7% as employers stayed cautious on hiring, while temporary and contract placements fell just 1%. Germany and the UK, two of Hays's largest markets, both saw fees decline, but the US and Canada bucked the trend with fees up 8% and 12% respectively.
Hays is widely watched as a bellwether for the broader jobs market, and today's update will do little to reassure businesses or the UK government hoping for signs of a hiring rebound. The company is pressing on with its 'Momentum' strategy, which involves narrowing its focus to 16 core countries, cutting costs and investing in technology, including a new AI partnership with Synthesia and the rollout of a fresh customer relationship management system.
The group delivered around £10m of cost savings in the quarter as part of a wider target of roughly £50m in annual savings, and posted a twelfth consecutive quarter of growth in consultant productivity. However, net debt crept up to about £45m, having stood at net cash just three months earlier, highlighting the financial strain of restructuring amid a soft hiring market.
Looking ahead, Hays expects market conditions to remain broadly stable in the near term, with temporary staffing likely to continue outperforming permanent recruitment. The company is also exploring the sale of several non-core operations as it reshapes its footprint, a process investors will watch closely for further signs of strategic progress.
This report is based on Hays’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Christina @ wocintechchat.com M on Unsplash.
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