Investing.com – British staffing firm Hays said on Monday that net rates fell 3% on a like-for-like basis during its first quarter, as a decline in permanent hiring offset stable temporary and contract demand, and it does not foresee a near-term recovery following the 2% drop in rates in September.
In real terms, net rates fell 5% in the quarter ended 09/30/2026, as Hays closed operations in Thailand and Mexico and sold businesses in the Czech Republic, Denmark, Hungary, Luxembourg, Romania and Sweden.
The depreciation of the pound sterling against the Australian dollar partially offset the decline. Sales were completed on 16.06.
Net permanent hiring rates fell 7%, driven by a 12% decline in the number of placements, the company said. Hays cited “persistent fragility in northern Europe” and good growth in southern Europe and North America. The average rate on permanent placements rose 5%.
Temporary and contract net rates fell 1%. Volumes remained stable compared to the previous quarter, and hours worked in Germany remained constant and in line with the company’s expectations.
Hays said he expects “stable market conditions in the near term,” with temporary work and contracts holding up better than permanent hiring. It does not foresee any material impact from business days in the second quarter.
Germany, which accounts for 32% of the group’s net rates, saw a 6% drop. Temporary and contract labor rates in that country fell 5%, as volumes fell 2% and reduced hours worked and a less favorable mix took away an additional 3%. The United Kingdom and Ireland fell 5%, and Australia and New Zealand fell 3%.
The rest of the world was flat, with the Americas up 9% and Asia advancing 6%. Europe, the Middle East and Africa, excluding Germany, fell 5%, with France down 16% on weakness in permanent hiring.
Net debt was around £45m at 30.09, compared to net cash of £20.1m at 30.06. Hays said this was in line with its expectations and reflected seasonal cash flows, one-off payments and share purchases for an ownership plan for all employees.
Source: es.finance.yahoo.com
