Hays (AO) | Hold | Execution supports earnings, cautious stance unchanged

Research evidence excerpt

Hays (AO) | Hold | Execution supports earnings, cautious stance unchanged

News comment

Release date: 10 July 2026

Simon Van Oppen

Equity Research Analyst

+31205632374

svoppen@keplercheuvreux.com

HoldHays

United Kingdom | Support services MCap: GBP570.2M

Target Price: 51p Bloomberg: HAS LN Reuters: HAYS.L

Current Price: 35.86p Free float 92%

Up/downside: 42.2% Avg. daily volume (GBPm) 214.0

YTD abs performance -36.3% Market data: 09 July 2026

52-week high/low (GBP) 67.25/29.64

Execution supports earnings, cautious stance unchanged

Key points:

Top-line trading remained weak, with Group net fees declining 5% YoY, reflecting continued pressure in recruitment markets.

Temp & Contracting proved relatively resilient (-3%), while Perm remained weak (-7%) and softened further through the quarter

across several markets.

FY26 operating profit is expected at the top end of the GBP 37-46m consensus range, as consultant productivity and continued cost

discipline more than offset lower H2 net fees.

Consultant productivity improves further, increasing 8% YoY for the eleventh consecutive quarter.

Cost savings continue, with c.GBP50m of annualised savings secured, exceeding the original FY29 target of c.GBP45m three years ahead

of schedule, which in our view underscores the continued weakness in recruitment markets.

Portfolio optimisation continues, with the disposal of six countries and strategic review of a further seven markets.

Investment view: While Hays continues to execute well on productivity and costs, the outlook remains uncertain. Management

continues to highlight limited visibility, ongoing weakness in Perm and soft trading in white-collar Temp. We therefore remain

cautious and believe our Hold rating remains justified.

Table 1:Net fee growth LFL

% Q4 25/26