Hays H1 adjusted operating profits fall amid hiring slowdown
Recruitment firm said on Wednesday that adjusted operating profits had fallen in H1 as a slowdown in hiring continued to weigh on placement volumes and fees.
Hays said operating profits before exceptional items had fallen to £25.5m in H1, halving its conversion rate to 5.1%. Net fees fell 14% on a like-for-like basis to £496.0m, with permanent hiring down 19% and temporary placements slipping 9%. Tech recruitment, Hays' speciality, dropped 15%.
The FTSE 250-listed firm did note, however, that net fees per consultant rose 4% year-on-year, with consultant headcount down 3% in H1 and non-consultant staff falling 18%. As a result of the lower staff numbers and other initiatives, Hays managed to make cost savings of £25.0m in the half.
Hays added that it expects operating profits to be in line with consensus estimates of £56.9m for the year ending 30 June.
As of 0910 BST, Hays shares were down 1.07% at 69.10p.
Reporting by Iain Gilbert at Sharescast.com
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