Hays full-year profits drop amid 'clear slowdown'

22nd Aug 2024 08:19

(Sharecast News) - Recruiter Hays posted a decline in full-year profit on Thursday as it highlighted "a clear slowdown" in challenging markets.

In the year to the end of June, pre-tax profit slid 92% to £14.7m, while operating profit was down 46% at £105.1m. Net fees fell 12% to £1.1.bn.

In the UK and Ireland, Hays said that as expected activity levels have been relatively subdued since the general election and conditions remain challenging.

Chief executive Dirk Hahn said: "We saw increasingly challenging market conditions through FY24 in both Perm and Temp, with low confidence levels and longer-than-normal 'time-to-hire', and our profitability was significantly impacted, including our three largest markets of Germany, Australia and the UK.

"Against this backdrop, we have focused on enhanced operational rigour, driving consultant productivity and strong cost management, and are determined to build a more resilient Hays. Our strategy, launched in February, is designed to capitalise on the many growth opportunities we see, while increasing our resilience, quality of earnings and cash generation."