Hays Forecasts Top-End FY2026 Profit, Shares Jump 15%
Hays Plc (LON:HAYS) saw its share price rise 15.17% on Friday, 10 July 2026, after the staffing firm announced that it expects fiscal 2026 pre‑exceptional operating profit to be at the top of the consensus range of £37 million to £46 million, with the midpoint of that range calculated at £43.5 million based on ten sell‑side analysts. Morgan Stanley maintains an equal‑weight rating on Hays with a 35‑pence price target, stating that the share move reflects investor relief rather than a change in the underlying growth story.
For the quarter ended 30 June, group net fees declined 5% on a like‑for‑like basis, better than the 6% drop analysts had forecast. The decline was uneven across regions: Germany, Hays’ largest market, fell 7% versus an expected 9% fall; the Rest of World division slipped 1% against a 5% expected decline; the UK and Ireland business fell 8% compared with a 7% anticipated decline; and Australia and New Zealand slipped 2% versus forecasts for flat performance. Permanent recruitment activity softened during the quarter, with job flow down roughly 5% versus February‑March levels, particularly in the UK and Northern Europe. Chief executive Mark Dearnley noted that the year‑on‑year decline in group net fees eased to 5% in the fourth quarter, driven by growth in temporary and contracting roles in several countries and stable hours worked in Germany despite softer permanent activity.
Hays reported that it delivered about £50 million of annualised structural cost savings in fiscal 2026, surpassing its £45 million target three years ahead of schedule and taking total savings since fiscal 2024 to roughly £115 million. The company also completed the sale of six European operations to Meraki Capital on 16 June and is reviewing strategic options for businesses in Belgium, Brazil, Greater China, Malaysia, the Netherlands, Singapore and the United Arab Emirates as it narrows its focus to 16 core markets. Hays expects a restructuring charge of approximately £40 million and a further £30 million impairment on right‑of‑use assets linked to a global office consolidation. Net cash stood at about £20 million at quarter‑end, compared with net debt of about £15 million at 31 March. Full‑year results and a strategy update are scheduled for 20 August. The firm employed roughly 8,100 people across 155 offices in 23 countries as of 30 June. The rally also lifted peers in the European staffing sector, with Adecco rising 4.6% and Randstad gaining 3.3% as of 08:52 ET (12:52 GMT).