2024 has largely been a write off for Britain’s commercial recruitment firms, and FTSE 250-listed constituent Hays PLC (LSE:HAS) is no exception.
Hays, in a June’s fourth-quarter trading update, warned of a “subdued summer” amid a stagnation employment market across all major regions. “It is too early to determine when we will see a meaningful recovery,” management added.
The group has guided towards an operating profit for the full year of around £105 million, supported by £60 million in cost-saving measures. This is down from a £197 million operating porofit in 2023.
Investors should therefore temper their expectations for a miracle when the group reports on Thursday, 22 August, although they could be wishing for a ray of light in guidance for the year ahead.
On the bright side, Hays has shown an ability to remain prudent with its cash retention, although this has come at the cost of headcount reductions.
Shares are down 16% year to date, leaving a bit of headroom to movement should Thursday’s results yield some pleasant surprises.