Recruiters came under pressure after Hays warned of a global hiring slowdown and axed more than 1,000 of its own workforce.
The FTSE 250 company said business cooled in December due to ‘increased uncertainties and reduced client and candidate confidence’.
The lack of hiring led to a 15 per cent slide in fees last month alone.
Across the second quarter of its financial year – October, November and December – fees were down 10 per cent.
Hays expects to have made half-year profits of £60million – well below the £73million forecast by analysts. Shares slumped 7.2 per cent, or 7.7p, to 100p.
Lay-offs: Recruiter Hays said business cooled in December due to ‘increased uncertainties and reduced client and candidate confidence’
Hays said fewer people applied for seasonal work while companies and workers took more time to make decisions over permanent positions.
The company also revealed it has axed 1,150 over the past year including 550 in the final three months of 2023.
Boss Dirk Hahn said: ‘It is too early to say if December’s weakness reflects a sustained market slowdown or some placement deferrals, however, we expect near-term market conditions to remain challenging.’
Hays works with thousands of companies to help them find staff to fill vacancies in sectors such as technology, accounting and finance, engineering and construction and property.
Its results dragged down the rest of the recruitment industry with PageGroup down 2.9 per cent, or 13.8p, to 455.8p, Robert Walters plunging 9.5 per cent, or 42p, to 400p and S Three losing 5.3 per cent, or 22p, to 391p.
On another subdued day in the City, the FTSE 100 lost 0.13 per cent, or 10.23 points, to 7683.96 and the FTSE 250 slid 0.51 per cent, or 99.78 points, to 19,294.02.
Brent crude bounced back following Saudi Arabia’s oil price cuts. It rose almost 3 per cent at one point to nearly $78 a barrel.
Stock Watch – Eden Research
A biopesticide product made by Eden Research to treat fungus on grapes has been approved for use in California.
The group hopes that farmers and winemakers in the US state will use Mevalone during this year’s growing season amid rising demand for alternatives to conventional chemical pesticides.
California is home to America’s largest wine producing regions.
Shares, which peaked at nearly 25p in August 2015, gained 8.7 per cent, or 0.5p, to 6.25p.
But the energy giants did not benefit. Shell slid 0.4 per cent, or 10p, to 2481p and BP lost 0.5 per cent, or 2.1p, to 459.35p.
The stellar run enjoyed by two of Britain’s top defence and engineering companies showed little signs of slowing.
Shares in BAE Systems hit a record high, rising 0.1 per cent, or 1.5p, to 1146.5p, after the group won a contact to upgrade Australian navy frigates. And Rolls-Royce rose 1.2 per cent, or 3.6p, to 308.8p, its highest level since June 2019.
But retailers endured a tough session amid ongoing concerns over Christmas trading and the outlook for interest rates and the economy.
JD Sports fell 4.2 per cent, or 5p, to 114.35p, Kingfisher slid 2.2 per cent, or 5p, to 226.1p and M&S dipped 1.5 per cent, or 4.2p, to 286.3p.
Housebuilder MJ Gleeson left investors spooked after it built fewer homes in the six months to the end of December.
Shares slumped 8 per cent, or 43p, to 495p. Annual revenues and profits rose at Shoe Zone as it cashed in on strong sales over the summer and autumn ahead of the new academic year.
Shares in the footwear firm rose 6.2 per cent, or 14p, to 240p.
There was also good news for building materials firm SIG as it reiterated its profit forecast for 2023 despite a slight dip in sales.
Shares added 0.9 per cent, or 0.3p, to 32.45p yesterday.
Heading in the other direction was Oxford Nanopore.
In a trading update, the gene sequencing company said its revenues increased by 15 per cent to around £169million in 2023.
Second-half sales were hit by weaker growth in China and the Middle East following US semiconductor trade restrictions. Shares plunged 13.4 per cent, or 27p, to 175p.
Hill & Smith secured its fourth acquisition in the last 12 months as the safety barrier maker bought a New Jersey-based structural steel firm for around £5million. Shares dropped 1.9 per cent, or 34p, to 1794p.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
