Hays PLC (LSE:HAS) remained under pressure from Jefferies despite reporting full-year results broadly in line with expectations, with the broker retaining its Underperform rating and 28p price target.
Jefferies said operating profit for the year to 30 June 2026 rose 7% to £48.6 million, slightly ahead of guidance and its own £40 million estimate. Second-half operating profit increased 42% year on year to £28.5 million, helped by cost savings.
Hays is trading at 66.75p before midday, down 6.58% from its previous close of 71.45p.
However, the company 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.
Fourth-quarter like-for-like net fees fell 5% at group level, in line with the company’s July update but better than Jefferies’ forecast for an 8% decline. Temporary recruitment remained relatively resilient, while permanent hiring stayed weak. Net fees for the full year fell 8%.
Headcount was reduced further to 5,194 in the fourth quarter, down 4% quarter on quarter and 12% year on year. Management expects staffing levels to remain broadly stable in the first quarter of the new financial year.
The group ended June with net cash of £20 million, compared with £37 million a year earlier. Its final dividend was held at 0.29p per share, taking the full-year payout to 0.44p, down 65% year on year and in line with its 2-3x dividend cover framework.
Jefferies said trading in July and August remained in line with expectations, with no significant change from fourth-quarter activity levels. It added that September would be the key month for assessing first-quarter trends.
