Business
Hays profits tumble as recruiter flags sharp drop in permanent hiring
Global recruitment chain Hays has announced plunging profits as it said uncertainty about the economic and political environment was weighing on hiring activity.
The company, which is one of Europe’s biggest recruitment agencies, said conditions in the jobs market remained “challenging”.
Its net fees were £972.4 million for the year to the end of June, 11% lower than the previous year when compared like for like.
This was largely driven by a sharp 17% drop in permanent hiring fees, with the volume of placements down by a fifth.
This was weaker than the 7% decline for its temporary and contracting division, which it said was slightly more resilient.
Pre-tax profits shrank by 90% year-on-year to £1.5 million.
Its profit before exceptional items, which it deems to be one-off costs, tumbled by two thirds to £32.2 million.
Hays previously warned investors that its annual profits were likely to fall short of expectations because of a lacklustre global jobs market and hiring weaknesses in Germany, its biggest market.
German carmakers have faced particularly subdued activity amid the threat of higher US tariffs looming over the industry.
Permanent hiring volumes dropped by a quarter across the region, with weak confidence weighing on employers and job seekers, Hays said.
Hays has been making sweeping cutbacks in a bid to help mitigate the impact of the hiring slowdown.
It said it had made £35 million worth of annual cost savings and it was targeting a further £45 million by 2029, which would bring the total to £80 million.
As part of this, it has closed or merged 29 of its global offices in the past year, and cut the number of recruitment consultants it employs by 14%.
This amounted to nearly 1,000 job reductions worldwide, including about 350 in the UK and Ireland.
Hays said activity in July and August had not picked up and it was too early to say how September, a key trading month for the recruiter, would fare.
Dirk Hahn, Hays chief executive, said: “Market conditions remained challenging during the year, with economic and political uncertainty weighing on confidence, increasing ‘time-to-hire’ and reducing placement volumes.
“Despite making significant strategic and operational progress towards our long-term ambitions, our overall financial performance was impacted by these headwinds.
“Our strategy, targeting the most in-demand sectors, roles and geographies, building stronger client relationships and increasing exposure to temp and contracting recruitment, continues to develop.”
Mr Hahn said the firm was in a position to grow its fees and profits “when key markets recover”.
The government on Thursday kept petrol and high-speed diesel (HSD) prices unchanged at Rs253.17 per litre and Rs257.08 per litre respectively, for the coming fortnight, starting from January 16.
This decision was notified in a press release issued by the Petroleum Division.
Earlier, it was expected that the prices of all petroleum products would go down by up to Rs4.50 per litre (over 1pc each) today in view of variation in the international market.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
Meanwhile, most of the transport sector runs on HSD. Its price is considered inflationary, as it is mostly used in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, and particularly adds to the prices of vegetables and other eatables.
The government is currently charging about Rs100 per litre on petrol and about Rs97 per litre on diesel.
One of Britain’s most prolific rail fare dodgers could face jail after admitting dozens of travel offences.
Charles Brohiri, 29, pleaded guilty to travelling without buying a ticket a total of 112 times over a two-year period, Westminster Magistrates’ Court heard.
He could be ordered to pay more than £18,000 in unpaid fares and legal costs, the court was told.
He will be sentenced next month.
District Judge Nina Tempia warned Brohiri “could face a custodial sentence because of the number of offences he has committed”.
He pleaded guilty to 76 offences on Thursday.
It came after he was convicted in his absence of 36 charges at a previous hearing.
During Thursday’s hearing, Judge Tempia dismissed a bid by Brohiri’s lawyers to have the 36 convictions overturned.
They had argued the prosecutions were unlawful because they had not been brought by a qualified legal professional.
But Judge Tempia rejected the argument, saying there had been “no abuse of this court’s process”.
JSW Jetour T2 Launch: JSW Motors Limited, the passenger vehicle arm of the JSW Group, is reportedly preparing to enter the Indian car market this year. It has partnered with Jetour, a China-based automotive brand owned by Chery Automobile, and the Jetour T2 SUV could be the company’s first product, according to the reports.
Media reports suggest that the launch will happen independently and not under the JSW MG Motor India joint venture. The SUV will wear a JSW badge and name, instead of the Jetour branding. The upcoming SUV will be assembled at JSW’s upcoming greenfield manufacturing facility in Chhatrapati Sambhaji Nagar, Maharashtra.
According to the reports, the company plans to have the vehicle on sale by the third quarter of this year. With this move, JSW aims to establish itself as a standalone carmaker in India.
Expected Powertrain
The SUV is likely to arrive with a 1.5-litre plug-in hybrid setup. Internationally, this hybrid powertrain is offered with both front-wheel drive and all-wheel drive options. It is still unclear which version will be introduced in India.
Design
In terms of design, the T2 is a large and rugged-looking SUV. It has a boxy and upright stance, similar to vehicles like the Land Rover Defender. Despite its tough appearance, it uses a monocoque chassis instead of a ladder-frame construction.
Size
The SUV measures around 4.7 metres in length and nearly 2 metres in width. This makes it larger than the Tata Safari, even though it is a five-seater. A longer 7-seat version is also sold in some markets.
Price
Pricing details for India are yet to be announced. For reference, the front-wheel-drive five-seat T2 i-DM is priced at AED 1,44,000 (around Rs 35 lakh) in the UAE.
Jetour
Jetour is a brand owned by Chinese automaker Chery. Launched in 2018, it focuses mainly on SUVs and is present in markets across China, the Middle East, Africa, Southeast Asia and Latin America.
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