Hays PLC (LSE:HAS) reports full-year results on Thursday 24 August, fresh from providing an update that revealed a weakening of recruitment activity back in July.
Along with sector peers this was taken as signs that the UK jobs market could be slowing down.
The FTSE 250-listed recruiter said regional fees fell 7% in the UK & Ireland – which makes up 20% of its business – while overall net fees dropped 2% in the fourth quarter ending June 30.
Guidance on operating profits was that they were likely to be in line with market expectations of £196 million.
The trend of tougher economic conditions in the UK is not expected to have fully reversed in next week’s results, but an update from management on the outlook for the new financial year will be the big focus.
Another thing to keep in mind, said analyst Sophie Lund-Yates at Hargreaves Lansdown, is Hays’ efforts to pivot away from its reliance on more cyclical industries and towards growth areas.
"Tech and Engineering now make up over a third of total net fees, up from 14% in the great financial crisis. This won’t stop declines in performance in the face of recession, but it should increase resilience – investors will be keen to find out if the net fee distribution has shifted any further into these more favourable areas," she said.