Hays forecasts FY2026 profit at top of consensus, shares rise 11%

Hays Plc (LON:HAYS) saw its share price surge more than 11% on Friday after the staffing group announced that it expects fiscal‑2026 pre‑exceptional operating profit to be at the upper end of the analyst consensus range of £37 million to £46 million, with the midpoint of that range, derived from ten sell‑side analysts as of 9 July, standing at £43.5 million.

In the quarter ended 30 June, group net fees declined 5% on a like‑for‑like basis, outperforming the consensus expectation of a 6% fall. The performance varied by region: Germany, Hays’ largest market, posted a 7% decline, better than the anticipated 9% drop; the Rest of World division fell 1% versus a forecast 5% decline; the UK and Ireland business slipped 8%, slightly worse than the expected 7% decline; and Australia and New Zealand declined 2% compared with a consensus view of flat performance.

Chief executive Mark Dearnley said the year‑on‑year decline in group net fees eased to 5% in Q4, driven by strong temporary and contracting growth in several countries and stable average hours worked in Germany, despite a modest slowdown in permanent placements.

The company reported that it has delivered approximately £50 million of annualised structural cost savings in fiscal 2026, exceeding its target of £45 million per year by fiscal 2029 and achieving this three years ahead of schedule. Cumulative annualised structural savings since the start of fiscal 2024 now total about £115 million.

On 16 June, Hays completed the sale of its operations in six European countries to Meraki Capital, generating net cash proceeds of roughly £4 million after transaction costs. The group is also reviewing strategic options for its businesses in Belgium, Brazil, Greater China, Malaysia, the Netherlands, Singapore and the United Arab Emirates as it sharpens its focus on 16 core markets.

Hays expects to record a restructuring charge of about £40 million and an additional impairment of approximately £30 million on right‑of‑use assets linked to the global consolidation of offices.

The balance sheet at quarter‑end showed net cash of about £20 million, compared with net debt of roughly £15 million at 31 March. The company employs around 8,100 people across 155 offices in 23 countries as of 30 June.

Full‑year results and a detailed strategy update are scheduled for publication on 20 August.