𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Recruiter Hays has said it is on track for profits at the top of targets despite a “challenging” jobs market.

Shares in the company shot higher in early trading on Friday as a result, sending its shares to a four-month high.

The London-based firm indicated that cost controls helped to offset another quarter of weakness in the wider recruitment sector.

Hays said it expects to deliver operating profits, before exceptional items, at the “top” of a range of between £37 million and £46 million.

It came after the company highlighted that “actions to deliver strong, consultant net fee productivity growth and cost discipline continued to offset our lower net fees” in the first half of 2026.

The company stressed that it is still mindful of wider uncertainty in the global economy and it expects “market conditions to remain challenging” in the near future.

Hays also stressed that it is likely to maintain its headcount levels through the next quarter as well, having made significant cuts over the past year.

Nevertheless, it came as the company reported that net fees declined by 4% in the three months to end of June.

It represented a slowdown in its rate of sales decline, amid a boost from an improved performance in its temp and contracting business.

Net fees were 8% lower year-on-year in the UK and Ireland.

Mark Dearnley, chief executive, said: “We continue to make strong progress with our structural cost and productivity initiatives and currently expect full-year 2026 pre-exceptional operating profit will be at the top of the consensus range following a return to strong year-on-year growth in the second half.

“Progress on the design of our strategy and the shaping of a more competitive operating model is well underway.”

Adam Vettese, market analyst for EToro, said: “Hays’ Q4 update underlines that the group is doing a good job of managing what it can control in a difficult market.”

Shares moved 11.8% higher to 40.08p on Friday morning.