Hays first-half profits more than halve amid 'challenging' conditions

(Sharecast News) - Recruiter Hays reported a drop in first-half profit on Thursday amid "challenging" market conditions, as economic and political uncertainty weighed on client and candidate confidence. Hays said this drove lower placement volumes and a material lengthening of its 'time-to-hire'.

In the six months to the end of December 2024, operating profit fell 56% to £25.5m, while pre-tax profit was 66% lower at £9.1m. Net fees declined 13% to £496m and the interim dividend was left unchanged at 0.95p per share.

Net fees in Temp & Contracting were down 9% and more resilient than the Permanent segment, which saw a 19% drop, Hays said.

Chief executive Dirk Hahn said: "Our focused strategy has five levers designed to build a structurally more profitable, resilient and growing business and, despite ongoing macroeconomic uncertainty, we have remained relentlessly focussed on delivering them. Our 4% consultant fee productivity increase is sector leading, our structural cost savings initiatives are progressing well, net fee growth in Enterprise accelerated to 12% in Q2, and Temp & Contracting net fees are growing strongly in several of our Focus countries.

"However, we continue to face considerable headwinds from economic conditions and our like-for-like operating profit declined by 56% YoY. The board and I are very grateful for the deep commitment shown by all our colleagues through this challenging period."