British recruiter Hays beats annual profit expectations on cost cuts

Aug 20 (Reuters) - British recruiter Hays reported annual operating profit above market expectations on Thursday, as cost cuts and resilient temporary hiring helped offset weak permanent recruitment in an uncertain economy.

Here are some details from its annual results:

• Hays, which recruits across sectors including IT, accountancy and engineering, posted operating profit of £48.6 million ($66.11 million) for the year ended June 30, above the company-compiled consensus of £45.3 million and up 7% from the previous year.

• It said trading in July and August was in line with its expectations, with no significant change to activity levels from the previous three months.

• Globally recruiters are cutting costs to bolster profits as geopolitical tensions and AI-driven efficiencies weigh on hiring, with firms preferring shorter-term contracts as they navigate uncertainty over tariffs and the Iran war.

• To offset the downturn, Hays has been reshaping its portfolio under CEO Mark Dearnley, exiting several countries and narrowing its focus to 16 core markets.

• It forecast cost savings in fiscal 2027 of about £50 million, ahead of its 2029 target.

• Peer Michael Page earlier this month said its half-year pretax profit jumped, helped by growth in Asia Pacific and Americas.

($1 = 0.7352 pounds)

(Reporting by Prerna Bedi and Nithyashree R B in Bengaluru; Editing by Subhranshu Sahu)