- Recruitment company Hays reported that fee income was down by more than a third, and warned that it expected to generate a loss over the summer months.

'Cost increases and continued tough market conditions mean that we anticipate being modestly loss-making over the summer months,' the company warned.

Germany, its biggest market, reported a 33% decline in fees in the second quarter, while in the UK & Ireland fees fell 42%.

Like-for-like net fees in its temporary hires division, which made up 64% of group fees, and its permanent hires division declined by 26% and 44% respectively.

The company reduced costs by 21% versus pre-Covid levels, partially helped by certain temporary cost savings.

Looking ahead, the company warned that while activity had improved there were no signs yet of positive fee momentum.

'A return to profitability thereafter will require a sequential increase in fees, which in the early phase of a recovery should deliver a very high rate of incremental profit drop-through.

Annual pre-tax operating profit before exceptional items was expected to be between £130-to-135m.

At 8:14am: [LON:HAS] Hays PLC share price was -3.25p at 123.35p

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