Hays PLC Reports Challenging Q3 Trading Conditions
Why we think this is bad
The Q3 trading update from Hays PLC indicates challenging market conditions, with net fees declining 9% year-over-year. The company noted 'increasing macroeconomic uncertainty' and expects 'near term market conditions to remain challenging' into FY26. This suggests a deteriorating business environment that is likely to weigh on the company's performance in the near term.
Key Points
- Group net fees down 9% year-over-year, with Temp & Contracting down 6% and Permanent down 14%
- Challenging market conditions expected to persist into FY26
- Broker targets mixed, with Jefferies and RBC Capital Markets both lowering price targets
Summary
Hays PLC reported a 9% year-over-year decline in Q3 net fees, with both the Temp & Contracting and Permanent recruitment businesses seeing lower activity. The company noted 'increasing macroeconomic uncertainty' and expects 'near term market conditions to remain challenging' into FY26. Broker targets have been mixed, with Jefferies reiterating a Buy rating but lowering the price target, while RBC Capital Markets maintained an Outperform rating but also reduced the target price.