Hays Expects Weaker Profit in FY25 Amid Challenging Perm Markets
Why we think this is bad
The trading update from Hays plc indicates that the company expects its pre-exceptional operating profit for FY25 to be around £45m, which is significantly below the analyst consensus of £56.4m. This suggests the company is facing more challenging conditions, particularly in its permanent recruitment (Perm) markets globally, which have seen a broad-based weakening. While the temporary and contracting (Temp & Contracting) business remains more resilient, the overall outlook appears negative, leading to the BAD sentiment score.
Key Points
- Expects FY25 pre-exceptional operating profit of around £45m, below analyst consensus of £56.4m
- Perm markets have seen broad-based weakness due to low client and candidate confidence amid macroeconomic uncertainty
- Temp & Contracting business more resilient, but overall outlook appears negative
- Current challenging market conditions expected to persist into FY26
Summary
Hays plc has issued a pre-close trading update for the year ending 30 June 2025, indicating that it expects pre-exceptional operating profit of around £45m, which is significantly below the analyst consensus of £56.4m. This is primarily due to more challenging conditions in the company's permanent recruitment (Perm) markets globally, reflecting low levels of client and candidate confidence amid macroeconomic uncertainty. The temporary and contracting (Temp & Contracting) business remains more resilient. The company expects the current challenging market conditions to persist into FY26 and remains committed to delivering its focused strategy.