14th Apr 2026 09:12
(Alliance News) - PageGroup PLC on Tuesday warned of increased uncertainty amid the Middle East conflict as it reported a drop in first-quarter gross profit.
"Whilst we have seen signs of a normalisation in trading in some of our markets, the increased geopolitical and macro-economic risks due to the conflict in the Middle East create a heightened degree of uncertainty in the outlook for the rest of the year," Chief Executive Nicholas Kirk said.
The Weybridge, Surrey-based recruiter said gross profit fell 3.9% to GBP187.0 million in the three months to March from GBP194.5 million a year ago, or by 4.9% at constant currency. This was below company compiled consensus of GBP188.8 million.
The FTSE 250 listing called it a "resilient" performance but said ongoing "subdued levels of client and candidate confidence" were impacting decision making.
Shares in the recruiter rose 0.9% to 133.70 pence in London on Tuesday morning, but are 47% lower than a year ago and trading at levels last seen in 2003.
Market conditions in Europe, Middle East & Africa and the UK remain "tough", but on a brighter note the Americas and Asia Pacific, both delivered continued growth, the firm said.
At constant currency, gross profit fell 9.2% in EMEA, 11% in the UK, but rose 1.1% in the Americas and by 9.3% in Asia Pacific.
Chief Executive Nicholas Kirk noted the US and Asia, which represent 35% of business, have grown for six and four quarters in a row, respectively.
Permanent fees were 3.7% lower at constant currency, with temporary billings down 7.8%.
PageGroup said salary levels remain strong, with the conversion of offers to placements remaining the most significant challenge.
"Where we have experienced improved trading, this was driven by a normalisation of levels of conversion of offers to placements. In our other countries, where trading remains challenging, we are yet to see any improvement in this metric," the company explained.
By Jeremy Cutler, Alliance News reporter
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