London-listed recruitment firm Hays has disclosed a steep decline in profits amid persistent weakness across recruitment markets.
The firm is cutting its final dividend to 0.29 pence per share, delivering a full-year dividend of merely 1.24 pence, representing a 59 per cent cut from the prior year, as reported by .
This decision aims to bring the dividend policy into line with the company's existing profitability and capital allocation strategy, after a 56 per cent like-for-like fall in pre-exceptional operating profit, which dropped to £45.6m from £105.1m in the preceding year.
READ MORE: {}
Hays notified shareholders this morning that its preliminary results for 2025 will demonstrate a 66 per cent plunge in profit before tax on a pre-exceptional basis to £32.2m, down from £94.7m.
Nevertheless, the group maintains robust cash flow, with operating cash flow rising by 14 per cent to £128.3m. It also delivered a solid cash conversion rate of 281 per cent and concluded the year with £37m in net cash.
Hays looks to slash costs
The group has been concentrating on expenses throughout the past year. It has eliminated £35m in costs thus far, surpassing its objective.
The business has now established an ambitious fresh target to secure an additional £45m in annual savings by FY29.
Chief Executive Dirk Hahn commented: "Market conditions remained challenging during the year, with economic and political uncertainty weighing on confidence, increasing 'time-to-hire' and reducing placement volumes.
Most Read
"Despite making significant strategic and operational progress towards our long-term ambitions, our overall financial performance was impacted by these headwinds," he added.
The company delivered mixed results after its permanent recruitment division experienced a substantial like-for-like drop of 17 per cent, whilst temporary and contracting services demonstrated greater resilience with a more modest fall of 7 per cent.
Regarding its consultants, net fee productivity rose by five per cent year-on-year, accomplished through balancing cost-cutting measures with preserving productive capacity.
Consultant numbers fell by 14 per cent throughout the period via a combination of natural turnover, performance management, and business line shutdowns.
Hays shuttered its operations in Chile and Colombia, streamlining its office network by closing or combining 29 additional sites.
"I am confident we have the right strategy and people, and we remain well-positioned to drive material net fee and profit growth when key markets recover," Hahn added.