FTSE 250 headhunter Hays laid bare the difficult task of hiring staff as the recruiter outlined further cost savings.
It said that while there were plenty of jobs available it was struggling to fill the positions due to low confidence among clients and candidates.
This meant that the time taken to hire part-time and permanent staff took longer.
Matters were not helped by the timing of public holidays in Germany, its largest market, which resulted in the country having two fewer working days.
Hays laid bare the difficult task of hiring staff as the recruiter outlined further cost savings
This led to group net fees falling 14pc to £1.1bn in the year to the end of June, while profits plunged 92pc to £14.7m.
Hays, which recruits for industries including technology, accountancy and finance, and engineering, has also cut costs by £30m, with trading subdued in
Germany and the UK and Ireland. It added that September is the key month in its first quarter but ‘it is too early to assess trends’.
The company, which employs more than 11,000 people in 33 countries, is aiming to save £30m a year over the next three years.
Dirk Hahn, chief executive, said that would position it to benefit from the industry recovery and ultimately return to, and exceed, peak profits of £250m. Shares gained 2.5pc, or 2.4p, to 97.4p.
The FTSE 100 crept up 0.06pc, or 4.57 points, to 8288.00 but the
FTSE 250 dipped 0.4pc, or 82.49 points, to 21,104.70.
Outsourcer Serco will be paid £250m as part of a four-year deal that started this month to upgrade the back-up power plant at Pituffik Space Base in Greenland. The site supports US missile defence and space surveillance missions. Serco added 1.3pc, or 2.2p, to 175.5p.
United Utilities – up 1pc, or 9.2p, to 982.4p – climbed after investment bank UBS advised its clients to buy the water firm’s stock due to aspects such as its ‘sustainable dividend’.
Admiral also benefited from an improved rating after the insurer last week revealed it has cashed in on higher UK motor premiums following a surge in customers.
Analysts at Jefferies upgraded the blue-chip firm to ‘hold’ from ‘underperform’ and raised the target price from 2300p to 3025p
As a result, the shares rose 1.7pc, or 49p, to 2951p.
There were much bigger gains for Novayct after the molecular diagnostics company was paid a handy lump sum.
Last month it submitted a request for £12.2m in VAT from the British taxman related to invoices from the Department of Health and Social Care that will now not be paid after settling a two-year dispute.
The payment has increased Novayct’s cash position by more than £7m and lifted it 21.7pc, or 19.6p, to 110p.
Scottish media firm STV Group said its studio arm will produce the second series of Criminal Record, a thriller set in London, for Apple TV.
Other renewals have been for shows on BBC One and iPlayer, and Channel 4. It rose 5.2pc, or 13.5p, to 272p.
EBIQUITY plunged after the media data firm warned a decline in client spending will hit profits.
The group, which helps brand owners make investment decisions, expects to report a 7pc slide in revenues to £37.9m for the first six months of 2024.
And profits, which should have fallen 61pc to £2.3m during the period, will be below previous annual forecasts.
Shares tumbled 31.6pc, or 12p, to 26p.
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