Hays shares hit 14 year low after quarterly fees miss analyst expectations
Hays reported a deeper than expected 10 percent drop in quarterly fees and a sharp 21.6 percent profit decline. Results were driven by weak hiring in Germany.
Insights:
British recruitment firm Hays plc saw its shares tumble to their lowest level in more than 14 years on Wednesday after reporting a second-quarter decline in net fees that was worse than market analysts had anticipated. The company recorded a 10 percent drop in like-for-like net fees for the quarter, underperforming the 9 percent decline expected by consensus. For the six-month period ending in December, pre-exceptional operating profit fell by 21.6 percent to approximately 20 million pounds compared to the previous year.
The disappointing performance was largely attributed to a significant downturn in the technology and engineering sectors within Germany 
DE, a market that accounts for 33 percent of the total net fees for Hays plc. In this region, the recruiter experienced double-digit declines in net fees as employers in both the public and private sectors reduced average working hours to manage costs. This trend negatively impacted revenue from temporary and contracting placements, leading German net fees to miss overall market expectations.
DE, a market that accounts for 33 percent of the total net fees for Hays plc. In this region, the recruiter experienced double-digit declines in net fees as employers in both the public and private sectors reduced average working hours to manage costs. This trend negatively impacted revenue from temporary and contracting placements, leading German net fees to miss overall market expectations.
