Hays, the London-listed recruitment specialist, has expanded its share buyback programme to a total of £10 million, the company confirmed on Tuesday. The decision reflects the group’s strengthened balance sheet and a measured confidence in its operational outlook, even as the broader UK labour market remains subdued.
The buyback, which was originally set at a lower level, will now see the company repurchase up to £10 million of its own shares over the coming months. Hays said the move was supported by “continued cost discipline” and “improved cash generation” in the second half of its financial year. Shares in the FTSE 250 firm edged up by around 1.2 per cent in early trading following the announcement.
Analysts noted that the expansion of the buyback programme, while modest in scale, signals that Hays’ management believes the stock is undervalued. “It’s a vote of confidence from the board, but it doesn’t mask the fact that the recruitment sector is still navigating a tricky environment,” said one City analyst. “Temporary staffing is picking up, but permanent hiring remains patchy, especially in the UK.”
For UK investors and pension holders with exposure to the FTSE 250, the move provides a small positive signal from the recruitment sector, which is often seen as a bellwether for the wider economy. Hays operates across the UK, Europe, Asia-Pacific and the Americas, and its performance is closely watched for clues about hiring trends. The company has previously flagged a “challenging” market in the UK, with employers cautious about adding permanent staff amid economic uncertainty.
The buyback programme is expected to be completed through on-market purchases, with the shares cancelled to reduce the total number in issue. Hays did not provide an exact timeline but said the purchases would be conducted in accordance with regulatory guidelines. Source: Hays plc company announcement.