Pre-Close Year End Trading Update

Activity levels during our fourth quarter (ending 30 June) have reduced sequentially driven primarily by broad-based weakness in Perm markets globally reflecting low levels of client and candidate confidence as a result of macroeconomic uncertainty. Temp & Contracting activity continues to be more resilient.

We currently expect Group like-for-like net fees to decline by 9% YoY in Q4 (8% on a working day adjusted basis) against a soft prior-year comparative, with Perm and Temp & Contracting down 14% and 5% respectively.

Our current cost base on a periodic and constant currency basis has improved to c.£75m from c.£76m in Q3. However, given the largely fixed short-term nature of our cost base there has been a high drop-through of lower net fees to profitability and, as a result, we currently expect FY25 pre-exceptional operating profit of c.£45m*

At a regional level, we expect like-for-like net fees in our largest country Germany to decrease by 5% with continued stability in Contracting but weaker conditions in Perm and Temp, primarily due to a subdued Automotive sector. Perm has also weakened in the UK&I and we expect a 13% divisional net fee decline, and similarly in ANZ where net fees are expected to be down 9% YoY.

Net fees are expected to decline by 9% YoY in RoW. EMEA ex-Germany (net fees down 13%) has experienced challenging Perm markets, particularly in France. Asia (net fees down 3%) is stable overall. Americas (net fees down 1%) with 5% YoY growth in North America where markets remain stable.

Cash performance remains in line with normal trends and we expect a modest net cash position at year-end.

We expect current challenging market conditions to persist into FY26 and remain committed to delivering our focused strategy. Our initiatives to improve net fee productivity in real terms and back-office efficiency will be important drivers of medium-term profit recovery when the market recovers.

* Company compiled consensus pre-exceptional operating profit for FY25 is £56.4m, based on ten analysts.

James Hilton and Kean Marden will conduct a conference call for analysts and investors at 9:00am United Kingdom time on 19th June 2025. Participants are invited to register via the URL link below:

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