Hays Q2 Earnings Call Highlights

Core Insights - Hays reported a decline in consultant headcount by 1% in the quarter and 15% year-on-year, while reiterating its structural cost savings plan targeting £18 million per annum by FY29 [1][6][12] - The company achieved a 6% year-on-year growth in average consultant net fee productivity in Q2, marking nine consecutive quarters of improvement [2][6] - Group net fees fell 10% on a like-for-like basis, with TEMP and contracting down 8% and PERM down 14%, but strong consultant productivity and cost discipline helped offset lower fees [4][7] Financial Performance - Hays expects a pre-exceptional operating profit of around £20 million in H1 FY26, in line with consensus expectations, despite lower net fees [4][7] - The company secured approximately £15 million of annualized savings in H1 2026 and anticipates about £30 million of in-year P&L benefit from cost actions [6][7] - In Germany, fees decreased by 14%, with TEMP and contracting net fees down 13% and PERM fees down 20% [8] Regional Performance - In the UK & Ireland, fees decreased by 9%, with both TEMP and contracting and PERM down 9%, but consultant productivity growth accelerated to 15% year-on-year [9] - Australia & New Zealand (ANZ) saw a slight decline of 1% in fees year-on-year, with TEMP and contracting down 3% but PERM fees increased by 2% [10] - The rest of the world experienced a decline of 11% in like-for-like fees, with notable decreases in EMEA and the Americas, while some regions like Southern Europe showed growth [11] Future Outlook - Management highlighted uncertainty around macroeconomic conditions and emphasized the importance of Germany's reduced working hours as a key indicator for FY26 performance [12] - Consultant headcount capacity is deemed appropriate for current market conditions and is expected to remain stable in Q3, with ongoing efforts to reduce the cost base [12]