Among the key news on UK stocks, Hays PLC (GB:HAS) surged by nearly 2% as of writing, despite the company issuing a profit warning for FY24 in its fourth-quarter update. Hays now expects an annual pre-exceptional operating profit of £105 million, which is below the market consensus range of £106 million and £113 million.
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The company’s achievement of approximately £60 million in annualized savings in FY24, amid tough market conditions, could be the reason for the surge in shares.
Hays is a global recruitment company, operating across 33 countries.
Hays’ Trading Update
In Q4, the company’s net fees fell by 15% year-over-year on a like-for-like (LFL) basis due to a hiring slowdown in most of its markets. Regionally, ANZ (Australia and New Zealand) saw a significant decline, with fees dropping by 22% on an LFL basis compared to the same period last year. This was followed by Germany and the UK, where net fees decreased by 17%. Germany, which is the company’s largest single market, contributed 31% to the total net fees of the company in Q4.
Among its segments, Permanent hiring fees declined by 20%, while Temporary fees experienced a 12% decrease on an LFL basis.
In terms of outlook, the company stated that hiring in its key markets will continue to be sluggish as clients have tightened their recruitment budgets. Furthermore, employees are reluctant to switch jobs, contributing to the slow hiring process.
Earlier this week, Hays’ rival company PageGroup PLC (GB:PAGE) also issued a profit warning for 2024, citing a slowdown in hiring across its markets.
Hays will publish its preliminary results for FY24 on August 22.
What is the Share Price Forecast for Hays PLC?
HAS stock has received a Moderate Buy rating on TipRanks, backed by four Buy and four Hold recommendations. The Hays share price forecast is 115.0p, which is 26.3% higher than the current trading level.
