Hays (LON:HAS) has reported a staggering 90% plunge in annual profit, confirming the grim warning issued to markets in June.
The FTSE 250 recruiter posted pretax profit of just £1.5 million for the year ending 30 June, down from £14.7 million a year earlier, as net fees fell 13% to £972.4 million. At constant currency, fees were down 11%, with permanent placements hardest hit, dropping 17%, while temporary and contracting placements fell 7%.
Operating profit before exceptional items dropped 57% to £45.6 million from £105.1 million, in line with previous guidance. Exceptional charges of £30.7 million included £17.7 million for restructuring and £13 million for technology and finance transformation programmes.
Basic loss per share widened to 0.49p from 0.31p, while the dividend was slashed by 59% to 1.24p per share.
CEO Dirk Hahn said challenging market conditions and low client and candidate confidence weighed heavily on performance. “Economic and political uncertainty slowed hiring, increased time-to-hire, and reduced placement volumes,” Hahn added.
Looking ahead, Hays said trading in financial 2026 is currently in line with Q4 of 2025, though the company said September will be a crucial month for assessing trends.
Hays shares fell over 5% at the London open. The stock is down over 20% year-to-date.