Hays sees FY profit at bottom end of market views as Q4 fees drop

11th Jul 2024 07:21

(Sharecast News) - Recruiter Hays said on Thursday that full-year profit was set to be around the bottom end of the market consensus range of £106m to £113m as it posted a drop in fourth-quarter net fees.

In an update for the three months to the end of June, the company said group net fees declined 15%. Fees were down 17% in the UK and Ireland, 22% in Australia and New Zealand and 17% in Germany. Meanwhile, rest of world fees were 11% lower.

Hays also said that the June exit rate was down 18%, hit by "challenging" conditions in Germany and Australia, and the negative effects of elections in the UK and France.

Chief executive Dirk Hahn said: "Market conditions remained challenging in the quarter. Overall, we continued to see longer-than-normal 'time-to-hire', impacted by low levels of confidence. Given this backdrop, we have remained focused on driving consultant productivity and tight cost control, and we have delivered annualised savings of circa £60n during our FY24. Our proactive actions meant that average group consultant productivity increased by 3% in Q4.

"Given ongoing global uncertainties, in the near-term we expect our key markets will remain challenging. Looking ahead, we are focused on building a more resilient business, targeting the many long-term growth opportunities we see, and underpinned by our clear strategy and enhanced operational rigour. I know we can deliver substantial profit growth once our end markets recover, driven by our financial strength and strong teams of talented colleagues worldwide."

The company now expects FY24 pre-exceptional operating profit of around £105m.