Hays (LSE:HAS) reported a 3% decline in group net fees on a like-for-like basis for the first quarter of its 2027 financial year, with the recruitment company expecting market conditions to remain broadly stable in the near term. The group also reported further cost reductions under its Momentum restructuring programme.
For the three months ended 30 September 2026, net fees declined 5% on an actual basis, partly reflecting country disposals completed earlier in the year. The rate of decline moderated during the quarter, with September net fees falling 2%.
Temporary and contracting recruitment continued to outperform permanent placements. Net fees from temporary and contracting operations decreased 1% on a like-for-like basis, with volumes remaining sequentially stable. Permanent recruitment net fees fell 7%, reflecting a 12% reduction in placement volumes.
Regional performance varied across the group’s markets. Germany recorded a 6% decline in net fees, while the United Kingdom and Ireland reported a 5% reduction. Australia and New Zealand experienced a 3% decrease, while the Rest of World division recorded flat net fees, supported by growth in the Americas and Asia.
Chief executive Mark Dearnley attributed the moderation in the group’s net fee decline to growth in temporary and contracting recruitment across several countries. He also reported a return to growth in permanent placement activity in North America.
Consultant net fee productivity increased 8% during the quarter, marking the twelfth consecutive quarter of improvement on a seasonally adjusted basis. Productivity rose 11% in Germany and 10% in the UK and Ireland.
Hays continued implementing its Momentum restructuring strategy, which targets approximately £50 million in annual structural cost savings during the current financial year.
The company achieved around £10 million of additional annualised savings during the first quarter, bringing cumulative structural cost savings to approximately £125 million per annum since the beginning of FY2024.
The group’s net debt position stood at approximately £45 million at 30 September 2026, compared with net cash of £20.1 million at 30 June 2026. Hays attributed the change to seasonal cash flow movements and share purchases associated with its all-colleague share award.
Looking ahead, Hays expects recruitment market conditions to remain broadly stable in the near term, with temporary and contracting activity continuing to demonstrate greater resilience than permanent hiring.
The company also said it does not anticipate any material impact from differences in working days during the second quarter.
About Hays plc
Hays plc is a global specialist recruitment company providing permanent, temporary and contracting recruitment services across multiple industries and professional sectors.
The group operates internationally, connecting employers with qualified professionals through its recruitment network. Its activities cover major markets including Germany, the United Kingdom, Ireland, Australia, New Zealand and other territories across Europe, the Americas and Asia.
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