Hays PLC (LON:HAS) admitted it will be “modestly” loss-making over the summer months due to a higher cost base as it returns to normal working practices.
The recruiter chopped costs by 21% to £58mln at the end of the quarter to June 30, after furloughing staff and cutting salaries or working hours.
READ: Hays cancels dividend and looks to raise £200mln for post-coronavirus opportunities
As a result, operating profit before exceptional items for the year to June is expected to be £130-135mln, down from last year’s £248mln.
The firm said current activity levels have improved but it yet has to see positive momentum in fees, which will be key to swing back to profits after the summer.
The FTSE 250 company was hit hard by the coronavirus crisis, with total fees tumbling 34% in the fourth quarter, with temporary contracts outperforming permanent ones. The period ended with £365mln in the bank.
Shares shed 3% to 122.7p early on Thursday.
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