Pan-European Business Services

Research evidence excerpt

Pan-European Business Services

Results previews

We include results/trading update previews for all companies. Clearly the reported numbers

will be in the rear-view mirror and we would expect outlooks, on the whole, to reflect

continued geopolitical and macro uncertainty.

July (TBD) - CAPITA (OP, Target 450p) – H1 trading update

We had an in-line trading update on 18 May with overall adjusted growth of 2.9%, and with

+5.8% in the core Public Service business. There was no change to the overall outlook - Capita

continues to expect low to mid-single digit revenue growth in Capita Public Service, mid-teen

revenue growth in Pension Solutions and continues to expect declines in Regulated Services

driven by the non-repeat of one-offs in the mortgage software business. Management re-

iterated the numbers around the cost saving plan and associated costs, and confirmed it

continues to expect the Group to deliver positive free cash flow before the impact of business

exits, in 2026. That said, there is some risk from incremental costs on the Civil Service Pension

Scheme Contract, where not all deadlines have been met – Capita plans to update these in this

trading update.

10 July - HAYS (OP, PT 60p) – Q4 update

Hays will publish its fiscal Q4 IMS and host a conference call with the CFO to discuss calendar

Q2 net fee trends. Company-complied consensus looks for LfL net fee growth at the group

level of -6% (RBCe -7%), with the ANZ region expected to be flat YoY, RoW and UK&I to be

down M/HSD YoY and Germany down HSD YoY. Any indications of exit rates will be watched

for, but calendar Q3 is always materially skewed to September, so any trend confirmation may

not be discernible until October.

We expect the statement to emphasise ongoing cost and productivity initiatives, including