Hays (LON:HAS) Issues Quarterly Earnings Results

Hays (LON:HAS) posted its quarterly earnings data on Thursday. The company reported GBX (3.64) earnings per share for the quarter, Digital Look Earnings reports. Hays had a negative return on equity of 2.24% and a negative net margin of 0.16%.

Here are the key takeaways from Hays’ conference call:

• Pre-exceptional operating profit rose 3% to £48.6 million despite an 8% decline in net fees to £906 million, supported by 7% productivity growth, cost reductions, and strong cash conversion.
• Hays launched its Momentum strategy to focus on 16 countries, six global specialisms, higher-value roles, and three product areas, with a medium-term ambition to increase consultant net fee productivity by more than 50% and restore conversion above 25%.
• The company delivered £50 million of annualized structural savings in FY2026 and targets a further £50 million in FY2027, while technology investments—including AI-enabled search and matching tools—are being rolled out to improve consultant efficiency and fill rates.
• Trading remains subdued, particularly in permanent recruitment, with perm fees down 12% and volumes down 14%; July and August activity was broadly unchanged from Q4, and management said September will be a key indicator of demand trends.
• Hays expects significant further exceptional restructuring costs in FY2027 as it pursues additional savings and reshapes its country portfolio, including potential impacts from exiting or reviewing operations in several European countries.

Hays Stock Down 1.0%

Shares of LON HAS opened at GBX 67.35 on Friday. The company has a debt-to-equity ratio of 65.55, a quick ratio of 1.31 and a current ratio of 1.27. Hays has a 52 week low of GBX 28.68 and a 52 week high of GBX 72.83. The stock has a market capitalization of £1.06 billion, a P/E ratio of -102.05, a PEG ratio of 0.24 and a beta of 0.77. The stock’s fifty day moving average is GBX 49.57 and its 200 day moving average is GBX 40.96.

Hays announced that its board has initiated a stock repurchase program on Monday, June 1st that authorizes the company to buyback 0 outstanding shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Joe Hurd acquired 5,672 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The stock was acquired at an average price of GBX 35 per share, with a total value of £1,985.20. 0.81% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. UBS Group restated a “neutral” rating and issued a GBX 33 price target on shares of Hays in a research note on Friday, July 3rd. Citigroup dropped their price objective on shares of Hays from GBX 90 to GBX 75 and set a “buy” rating for the company in a research note on Friday, April 24th. Royal Bank Of Canada reissued an “outperform” rating and issued a GBX 60 price objective on shares of Hays in a report on Tuesday, July 14th. Finally, Jefferies Financial Group restated an “underperform” rating and set a GBX 28 target price on shares of Hays in a research report on Friday. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of GBX 57.20.

Hays Company Profile