City recruiter Hays PLC (LSE:HAS) was heavily impacted by the rapid hiring slowdown during the financial year ending 30 June.
Net fees decreased by 12% on a like-for-like basis to £1.1 billion while operating profit before exceptional items dropped by 46% year-on-year to £105.1 million.
Chief executive Dirk Hahn acknowledged the “increasingly challenging market conditions” throughout the year in both the permanent and temporary segments.
Longer-than-normal time-to-hire periods “significantly impacted” Hays’ profitability across the primary markets of Germany, Australia and the UK.
“Against this backdrop, we have focused on enhanced operational rigour, discipline and strong cost management, and are determined to build a more resilient Hays," Hahn added.
Hays was forced to slash hundreds of jobs in all key markets. Year on year, consultant headcount fell by 18%.
Despite the substantial slowdown in sale, Hays retained a robust balance sheet with £56.8 million in cash, allowing for a full-year dividend of 3p, unchanged from the previous year.