Ryan FowlerHays Group has announced a 12% decline in group net fees for Q2 FY25 compared to the same period last year, with permanent recruitment down 19% and temporary and contracting services down 7%. The December growth rate was consistent with the quarter overall, reflecting stability in temp and contracting services but weaker demand for permanent roles in key regions such as EMEA, UK and Ireland, and Germany.
CEO Dirk Hahn noted: “We are structurally improving Hays despite challenging markets. Our focus on operational rigour, resource allocation, and efficiency initiatives is paying off, as evidenced by a 4% increase in consultant productivity year-on-year.”
Group consultant headcount fell by 2% in Q2 and 15% year-on-year, aligning with the firm’s focus on enhancing productivity and reducing costs. Hays expects to achieve structural savings of £30m per annum by FY27, with its periodic cost base already reduced to £77m from £80m in Q1.
In the UK and Ireland, net fees declined by 14%, with the private sector down 10% and the public sector down 21%. London saw a 12% decline, while Northern Ireland performed better, with a 1% drop. The technology sector experienced the steepest decline, down 22%, although enterprise fees in this category rose by 11%.
Hays projects pre-exceptional operating profit for H1 FY25 to be around £25m, towards the lower end of the consensus range, reflecting subdued market conditions. While temporary and contracting fees remained stable, the company is closely monitoring New Year activity levels, a key indicator of market recovery potential.
