UK-based recruiter Hays PLC (GB:HAS) reported a 47% year-over-year decline in its operating profit for FY24 due to the slowdown in the global hiring market. The company’s pre-tax profit fell by 92% to £14.7 million compared to the previous fiscal year. Despite this, the shares gained nearly 4% as of writing, mainly because the results were in line with expectations after an earlier profit warning.
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Hays is a global recruitment company that serves 33 countries across multiple areas of specialization.
Hays Highlights Significant Hiring Slowdown
The company stated that it has witnessed a significant hiring slowdown in most of its markets, including Germany, Australia, and the UK. Among its segments, both Permanent and Temporary recruitment remained subdued with a longer hiring process. In FY24, the company’s total fees decreased by 12% on a like-for-like basis.
To overcome this, the company has been focusing on driving more operational efficiency and better cost management. Consequently, it has already achieved approximately £60 million in annualized savings in FY24. Moving ahead, it expects to generate an additional £30 million in annual cost savings by FY27.
In terms of its financial position, the company ended the year with a strong balance sheet, which included net cash of £56.8 million. As a result, the board proposed a final dividend of 2.05p per share. This led to a total dividend for FY24 of 3p per share, which is unchanged from the previous fiscal year.
Is Hays a Good Buy?
HAS stock has received a Moderate Buy rating on TipRanks, backed by four Buy and three Hold recommendations. The Hays share price forecast is 114.57p, which is 16.3% higher than the current trading level.
