Hays sees H1 profit at lower end of expectations amid subdued market

(Sharecast News) - Recruitment firm Hays said it expected interim pre-exceptional operating profit of £25m, towards the lower end of the consensus range amid subdued trading conditions as like-for-like net fees fell 12% in the second quarter. Group consultant headcount decreased by 2% in the quarter, mainly in the UK, and by 15% year-on-year.

"It is too early to say if recent perm weakness in EMEA, UK&I, and Germany reflects a more sustained market slowdown, or shorter-term deferrals of client and candidate decision making. However, we expect near-term market conditions to remain subdued," the company said on Wednesday.

The company's own consensus operating profit for the first half is £27m with a £24m - £33.2m range.

Reporting by Frank Prenesti for Sharecast.com