Hays PLC (LSE:HAS) saw its shares drop 9% to 40.63p after reporting a decline in net fees for the first half of its 2026 financial year and announcing that CEO Dirk Hahn is stepping down with immediate effect for personal reasons.
The specialist staffing group said net fees fell 9% to £453.3 million for the six months ending 31 December 2025, reflecting ongoing economic and political uncertainty. Temp & Contracting held up better, down 7%, while Permanent recruitment dropped 14%.
Operating profit before exceptional items fell 25% to £20.1 million, and pre-exceptional profit before tax dropped 30% to £13.4 million. Reported profit before tax was £4.6 million, down from £9.1 million a year earlier. The company also took an £8.8 million exceptional charge for further structural cost actions.
Despite the challenges, Hays generated £43.7 million in cash from operations, delivering a cash conversion of 217%, and ended the period with net cash of £40.3 million. An interim dividend of 0.15p per share was declared.
The company said its Five Levers strategy is delivering results. Consultant net fee productivity rose 7% year-on-year, marking nine consecutive quarters of growth, and the first half secured £15 million in structural cost savings, bringing total savings since FY24 to roughly £80 million per year.
Regionally, the UK & Ireland returned to profitability, ANZ’s pre-exceptional profit tripled, and Germany remained resilient despite challenges in Temp and lower hours worked. Hays also launched a next-generation digital platform to boost service, productivity, and cost efficiency.
In a separate announcement, Hays said chief digital and technology officer Mark Dearnley will take over as interim CEO, replacing Hahn, who has been with the company for 28 years. Hahn returned to work in January following a short period of medical leave after undergoing surgery. Dearnley will work closely with non-executive chair Michael Findlay and the executive leadership team to maintain continuity while a search for a permanent CEO is underway.
Findlay said: “We thank Dirk for his significant contribution to Hays, particularly in building our German business and resetting our strategy. We are grateful to Mark for stepping in as interim CEO to continue executing our strategic and operational priorities.”
CFO James Hilton added: “While net fees were down, our strategy is delivering — stronger consultant productivity, improved cost structure, and better profits in key regions. We’re focused on in-demand sectors and Temp & Contracting recruitment, which positions us well for growth as confidence returns.”
-- Updated to reflect share price movement --