Hays PLC (LSE:HAS) swung to a statutory pre-tax loss of £54.5 million in the year to 30 June 2026 as restructuring charges offset an improvement in underlying profit.
The recruitment group reported pre-exceptional operating profit of £48.6 million, up 3% like-for-like and slightly ahead of guidance, despite net fees falling 8% to £905.5 million. Pre-exceptional profit before tax rose 4% like-for-like to £35.1 million.
Reported results were hit by £89.6 million of exceptional costs, including £45.1 million for operational restructuring and £26.6 million linked to rationalising the group’s property portfolio.
Hays said permanent recruitment remained the weaker part of the business, with net fees down 12%, while temporary and contracting fees fell 5%.
UK and Ireland net fees declined 10% to £174 million, although the division returned to a pre-exceptional operating profit of £4 million from a £5.8 million loss a year earlier. Germany, its largest market, saw net fees fall 9% and operating profit drop 24% to £41.2 million.
The company also launched its Momentum strategy, targeting more than 50% growth in net-fee productivity over the medium term and around £50 million of additional annual structural cost savings in FY27.
Chief executive Mark Dearnley said the strategy would sharpen Hays’ focus and improve profitability and returns.
Current trading in July and August was in line with expectations, with activity broadly unchanged from the fourth quarter. Cash conversion was 189%, with net cash of £20.1 million.
Hays proposed an unchanged final dividend of 0.29p per share, taking the full-year payout to 0.44p.
Separately, Hays said on Wednesday that Helen Cunningham will succeed Susan Murray as chair of the Remuneration Committee after the 18 November AGM, while its Sustainability Committee has been disbanded.
