Hays Q2 fees drop 12%, H1 profit expected at lower end of forecasts
Hays Q2 fees drop 12%, H1 profit expected at lower end of forecasts

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Hays, a London-based global staffing firm, reported today that net fees (or gross profit) declined by 15% for the quarter ended 31 December 2024, a 12% decline on a like-for-like basis compared to the previous year.
Temp and permanent net fees were down 7% and 19%, respectively, on a like-for-like basis. The company’s December growth rate was in line with the quarter overall. The group noted slower permanent activity in EMEA, UK&I, and Germany but a more resilient performance in temp & contracting.
As a result, Hays says it expects an H1 pre-exceptional operating profit of circa £25 million, which is towards the lower end of the consensus range.
“We are structurally improving Hays despite challenging markets and remain resolutely focused on driving operational rigour through business line prioritisation, resource allocation, and efficiency initiatives,” Dirk Hahn, chief executive of Hays, said in a press release. “Group consultant productivity increased by 4% year-on-year in Q2, our structural cost savings initiatives are progressing well, and the defined benefit pension buy-in is expected to positively impact free cash flow from FY26.”
Hays said it continued to manage its consultant capacity on a business line basis and, despite tougher markets, its resource allocation actions drove a 4% year-on-year improvement in average consultant net fee productivity. Group consultant headcount decreased by 2% in the quarter, mainly in the UK, and by 15% year-on-year.
“Temp & contracting was sequentially stable through the quarter and our New Year ‘return to work’ will again be important so we are closely monitoring activity levels,” Hahn said. “Perm net fees slowed, but it is too early to say if recent weakness reflects a more sustained market slowdown or shorter-term deferrals of client and candidate decision-making. However, we are delivering on our strategy to focus on long-term growth markets and build a structurally more profitable and resilient business underpinned by our culture and talented colleagues worldwide, so I remain confident that we will benefit materially when our end markets recover.”
Staffing rival PageGroup published its Q4 trading update, reporting a decrease in gross profit of 13% on a constant currency basis to £196.7 million. On 14 January, Robert Walters reported that fourth-quarter net fee income was down 14% in constant currency (CC).
Net fees
Growth | Change | Like-for like |
Germany | (17%) | (13%) |
UK and Ireland | (14%) | (14%) |
Australia and New Zealand | (17%) | (14%) |
Rest of World | (12%) | (9%) |
Total | (15%) | (12%) |
Temp & Contracting | (10%) | (7%) |
Permanent | (21%) | (19%) |
Total | (15%) | (12%) |
Geography Breakdown
Growth rates below are on a like-for-like basis unless otherwise noted.
Net fees in Germany were down 13%. Temp & contracting decreased by 10% with volumes down 8%, in line with expectations. The company saw greater resilience in contracting but more challenging markets in temp where it has greater exposure to the automotive sector. Client cost controls drove a 5% reduction in average hours worked but the comparable eases next quarter. Temp margin and mix increased by 3% versus the prior year.
Activity levels remain subdued in permanent and net fees decreased by 27% as client decision-making slowed during the quarter.
Net fees in the UK & Ireland decreased by 14% with temp and perm down 11% and 19%, respectively. Temp & contracting net fees were sequentially stable but perm slowed through the quarter. The private sector (68% of UK&I fees) declined by 10% year-on-year but the public sector was tougher, down 21%.
Most regions traded broadly in line with the overall UK&I business, apart from Northern Ireland, down 1%, and the North, down 29%. The largest region of London decreased by 12%, and Ireland decreased by 30%.
Net fees in Australia & New Zealand (ANZ) fell by 14% with activity stable through the quarter. Temp decreased by 9%, and permanent was down 23%. Private sector fees, 61% of ANZ, decreased by 11%, with the public sector down 18%.
Net fees in the Rest of World (RoW) division, comprising 28 countries, decreased by 9% with temp up 3% and perm down 16% respectively.
EMEA ex-Germany (61% of RoW) net fees decreased by 13%. Temp & contracting fees were sequentially stable, but permanent slowed through the quarter. France, the largest RoW country, declined by 21% and Hays said it saw a clear step-down in permanent activity during the quarter. Poland and Switzerland were down 11% and 13%, respectively, but Spain and Netherlands performed better, up 1% and 5% respectively.
The Americas (23% of RoW) net fees grew by 2% led by stronger performances in Canada and the US, up 10% and 7% respectively. Latin America, down 26%, was more challenging.
In Asia (16% of RoW), net fees decreased by 6%, with mixed but overall stable activity through the quarter. Mainland China increased by 18% and Singapore was up 5% although Hong Kong remained tough, down 38%, while Japan was down 5%.
Looking ahead, the company said it is too early to say if recent permanent weakness in EMEA, UK&I, and Germany reflects a more sustained market slowdown, or shorter-term deferrals of client and candidate decision-making. However, the company expects near-term market conditions to remain subdued.
Hays added that it has ‘maintained good levels of productivity’ through Q2 and believes its overall consultant headcount capacity is appropriate for current market conditions, and therefore expects it to remain broadly stable in Q3 25. Hays shares last traded at £73.65, up 1.73% on the day and 5.14% above its 52-week low of £70.05, set on 13 January 2025. The company has a market cap of £1.13 billion.