Hays Outperforms Profit Expectations with Cost Cuts and Focused Markets
Annual Results and Strategic Initiatives Drive Profit Growth
Aug 20 (Reuters) - British recruiter Hays reported annual operating profit above market expectations on Thursday, as cost cuts and resilient temporary hiring helped offset weak permanent recruitment in an uncertain economy.
Key Highlights from Hays' Annual Results
Here are some details from its annual results:
Financial Performance
• Hays, which recruits across sectors including IT, accountancy and engineering, posted operating profit of £48.6 million ($66.11 million) for the year ended June 30, above the company-compiled consensus of £45.3 million and up 7% from the previous year.
Trading and Market Conditions
• It said trading in July and August was in line with its expectations, with no significant change to activity levels from the previous three months.
Industry Trends and Cost Strategies
• Globally recruiters are cutting costs to bolster profits as geopolitical tensions and AI-driven efficiencies weigh on hiring, with firms preferring shorter-term contracts as they navigate uncertainty over tariffs and the Iran war.
Portfolio Reshaping and Market Focus
• To offset the downturn, Hays has been reshaping its portfolio under CEO Mark Dearnley, exiting several countries and narrowing its focus to 16 core markets.
Cost Savings Outlook
• It forecast cost savings in fiscal 2027 of about £50 million, ahead of its 2029 target.
Peer Performance
• Peer Michael Page earlier this month said its half-year pretax profit jumped, helped by growth in Asia Pacific and Americas.
Additional Information
($1 = 0.7352 pounds)
(Reporting by Prerna Bedi and Nithyashree R B in Bengaluru; Editing by Subhranshu Sahu)
