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Highlights
Hays reported a 11% like-for-like decline in Group net fees to £972.4 million, with Temp & Contracting down 7% and Permanent placements down 17%.
Operating profit before exceptional items fell 56% year-on-year to £45.6 million, while strong cost savings of £35 million were delivered in FY25.
Final dividend reduced to 0.29 pence per share, bringing the total dividend for the year to 1.24 pence.
Hays plc (LSE:HAS) has published its preliminary results for the year ended 30 June 2025, reporting lower fees and profitability in the face of challenging market conditions.
Group net fees decreased 11% on a like-for-like basis to £972.4 million compared with £1,113.6 million in FY24. Temp & Contracting net fees declined by 7%, while Permanent placement net fees fell by 17%, reflecting weaker client and candidate confidence. Operating profit before exceptional items dropped 56% to £45.6 million (FY24: £105.1 million), while profit before tax before exceptional items declined 65% to £32.2 million.
Basic earnings per share before exceptional items fell to 1.31p (FY24: 4.03p), and basic earnings per share were negative at (0.49)p.
Cost Efficiency and Cash Flow
Despite the decline in fees, Hays delivered structural cost savings of approximately £35 million in FY25, exceeding its target, and is aiming for an additional £45 million per annum by FY29. Consultant productivity improved, with net fees per consultant rising 5% year-on-year. Consultant headcount was reduced by 14% and non-consultant headcount by 15% as part of ongoing efficiency programmes, including back-office restructuring and regional operational changes.
Cash generated by operations increased 14% to £128.3 million, reflecting 281% cash conversion, and the Group ended the year with net cash of £37.0 million. Hays also refinanced its revolving credit facility and completed a full buy-in of its defined benefit pension scheme, which is expected to have a materially positive impact on free cash flow from FY26.
Dividend
The Board has proposed a reduced final dividend of 0.29 pence per share, bringing the total dividend for FY25 to 1.24 pence per share (FY24: 3.00p). The payout reflects a dividend cover ratio of three times pre-exceptional earnings, in line with the Group’s framework of maintaining 2-3x cover while preserving balance sheet strength. The final dividend will be paid on 26 November 2025 to shareholders on the register as of 17 October 2025.
Market Conditions and Outlook
Market conditions in FY25 remained difficult, with economic and political uncertainty affecting hiring activity and extending time-to-hire cycles. Permanent recruitment was particularly impacted, with placement volumes down 20%, offset only partially by a 3% increase in average pricing.
Trading in July and August 2025 has been in line with expectations, with September highlighted as the key month for Q1 FY26. Hays expects consultant headcount to remain broadly stable in the near term and will continue to pursue structural efficiency measures to reduce its cost base further.
The Group maintains a diversified international presence, with operations across 31 countries and 21 professional specialisms. International operations contributed 80% of net fees in FY25, compared with 25% in FY05.
HAS share price dropped by almost 7.40% to GBX 58.80 per share at the time of writing on 21 August 2025.
