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Hays (HAS) has matched the gloomy tone of its recruitment peers by reporting no meaningful improvement in conditions heading into the new year. The firm said group net fees fell 10 per cent year on year in its second quarter, once again dragged down by Germany.

Recruitment for temporary and contracting roles fell 8 per cent, with a 14 per cent slump in permanent staff. The company said a modest decline in average hours worked in Germany through the summer accelerated during the quarter due to public sector and enterprise cuts. 

The company reported consultant net fee productivity of 6 per cent, despite cutting headcount by 1 per cent over the quarter and 15 per cent year on year. Hays still expects to deliver structural cost savings of around ÂŁ45mn a year by the end of FY29. 

Management is forecasting pre-exceptional operating profit in the first half to be around £20mn. “Our New Year �return to work’ will be important, so we are closely monitoring activity levels,” said chief executive Dirk Hahn. The shares fell 3.4 per cent to 49p.

Engineering company MS International (MSI) reported a 3 per cent decline in interim pre-tax profit despite a 2 per cent uplift in revenue, which it blamed on the impact of derivatives used to hedge currency risks. 

Without these, profit for the half-year ending in October would have been 16 per cent higher, at £9.28mn, chair Michael Bell said. He argued that the company’s “medium to long term prospects are better than at any time in the company’s history”. Still, the decline in profit sent the shares lower by 5 per cent.

Activist investor Saba Capital has formally written to the board of Workspace (WKP) to request a managed wind-down of the flexible office provider.

In the letter, Saba proposes the divestment of Workspace’s £2.3bn portfolio over a 12-month period at book value, repaying its debts and returning the remaining capital to shareholders. The activist fund run by Boaz Weinstein owns 13.5 per cent of Workspace.

It argued that the Reit’s “persistent trading discount, refinancing challenges, and structural impediments in its shareholder base” mean it is no longer creating value for shareholders.

Saba will have to win the support of leading shareholder Nicolas Roditi, who owns a 29 per cent stake.

The fund’s proposal to liquidate £2.3bn of assets at book value within 12 months in a fairly dormant London office market looks ambitious. Shares in Workspace rose 1 per cent in early trading.

Read more: Saba vs Baillie Gifford: could the activist win?

Inkjet printhead specialist Xaar (XAR) said like-for-like sales for 2025 should finish up 16.6 per cent higher at £60.3mn, while adjusted profits will be “marginally ahead” of consensus forecasts of £700,000.

The company finished the year with net cash of around ÂŁ4.8mn which, although ÂŁ3.4mn lower than last year following capital investment, is again ahead of forecasts. The shares rose by 7 per cent, bringing their one-year gain to 59 per cent.

Shares in ME Group International (MEGP), formerly Photo-Me, plunged 7 per cent this morning after the photo booth and vending machine operator said one of its top five shareholders has divested its stake.

Paris-based Montefiore Investment, which had a 3.3 per cent holding in FTSE 250 company, appointed bankers from Berenberg to sell its 12.5mn shares, with settlement due on Friday. ME Group will not receive any proceeds.

The move follows news last month that ME Group has brought its strategic review to a close, after finding no potential suitors. The board said at the time that it had not received an offer that “would be in the best interests of all the company’s shareholders.”

Mulberry (MUL) shares received a welcome boost after a strong Christmas implied the luxury bag maker’s turnaround plan is beginning to bear fruit.

The leather goods brand reported a 5.3 per cent increase in like-for-like sales during the 13 weeks to 27 December, marking a step change from an overall sales decline across its retail and digital channels at the half-year mark.

Revenue grew across all markets, with a particular improvement in Asia Pacific. The company posted a 12 per cent boost in retail and digital sales in the region, defying the luxury slowdown in China that has weighed on the industry.

Mulberry is in the early days of its overhaul under chief executive Andrea Baldo, whose efforts to reinvigorate the brand have focused on ringing up more full-price sales. 

“While there remains plenty more to be done, it is encouraging to see the early signs of our �Back to the Mulberry Spirit’ strategy delivering,” he said.

The shares rose 9 per cent in early trading.

GlobalData (DATA) has set 5 March as the new date for its move from Aim to the main market, which was postponed late last year.

The data analytics platform also said it expects to report 13 per cent revenue growth to ÂŁ322mn for the year to 31 December, with 1 per cent of that organic.

The company anticipates contracted forward revenue to grow by 6 per cent, or 3 per cent on an organic basis. Adjusted Ebitda is expected to be around ÂŁ110mn, with margins of around 34 per cent. Net debt is forecast to come in at around ÂŁ110mn.

Management said it has around 80 per cent visibility over the analyst revenue consensus for 2026 and is focused on bringing margins back towards 40 per cent. Full-year results are set to be published on 2 March. The shares fell 2 per cent to 116p.

Beleaguered investment group Liontrust Asset Management (LIO) posted another significant net outflow in its third quarter, but at a lower level after two mandate wins in the period.

For the three months to 31 December, net outflows came in at a painful £1bn as the group’s sustainable and economic advantage teams continued to struggle.

However, the result was an improvement on the ÂŁ1.6bn outflow in the same period last year and the ÂŁ1.2bn negative in the prior quarter, helped by ÂŁ330mn of institutional net inflows. Assets under management of ÂŁ21.5bn were down 13 per cent against the previous December. 

Liontrust shares have fallen more than 40 per cent over the past year. Peel Hunt analyst Stuart Duncan argued that “a shift in sentiment in UK wholesale and retail markets — particularly a move back towards quality from value — would be supportive” for the group.

Pearson (PSON) fell nearly 8 per cent in early trading after the education giant said it had lost a student assessment contract in the US. More widely, the FTSE 100 group reported underlying sales growth of 4 per cent for the year to 31 December, accelerating to 8 per cent in the final quarter.

Virtual learning was the fastest-growing unit, up 8 per cent for the full year and stepping up to 20 per cent in Q4 thanks to higher 2025/26 academic year enrolments. Enterprise learning and skills sales were up 6 per cent, picking up to 13 per cent in the final quarter as recently announced partnerships kicked in.

The assessment and qualifications arm grew 4 per cent growth for the year and 8 per cent in Q4. The US student assessment sub-division renewed and extended several key contracts but lost the contract with the state of New Jersey, which Pearson said will be a “headwind” in the first half of 2026.

Full-year group adjusted operating profit is forecast a ÂŁ610mn-615mn at constant currency, up around 6 per cent on an underlying basis. Pearson also expects “strong” cash generation, with free cash flow conversion of more than 95 per cent. 

Management didn’t provide 2026 guidance but said the medium-term outlook is unchanged. Full-year results are due on 27 February.

Prudential (PRU) has appointed former HSBC (HSBA) veteran Sir Douglas Flint as its new chair to replace Baroness Shriti Vadera, as the Asia-focused insurer tries to close the gap with key Hong-Kong based rival AIA (HK:1299). 

Flint, who was chair of HSBC until 2017 and at the bank for more than two decades, will succeed Vadera in May after he joins the Prudential board in March. He is currently chair of both Aberdeen (ABDN) and IP Group (IPO), but will step down from both roles by June. 

Prudential chief executive Anil Wadhwani said that Flint’s “deep knowledge of Asia is particularly important for the company”. 

In the third quarter, Prudential delivered a new business margin of 41 per cent against the 58 per cent at AIA.

Flint said it was “such an exciting time to be joining” Prudential. He added the company is well-situated to “expand the provision of protection, health and savings solutions to currently under-served markets”.

Prudential shares, which are also listed in Hong Kong, were flat in early trading in London. CA