10th Jul 2025 09:16
(Alliance News) - PageGroup PLC on Thursday said its gross profit decline worsened in the second quarter of the year amid "ongoing market and tariff-related uncertainty".
The Surrey, England-based recruitment firm reported a "slight deterioration in activity levels" in Continental Europe, though "some improvement" in Asia and the US.
Gross profit in the second quarter of 2025 was 13% lower on-year at GBP194.8 million. At constant currency, it declined 11%, worsening from a 9.2% fall in the first three months of 2025. For the whole of the first half, gross profit fell 12% to GBP389.3 million and was 9.7% lower at constant currency.
"We delivered a resilient performance despite ongoing market and tariff related uncertainty, with mixed results across the group. We saw a slight deterioration in activity levels and trading in Continental Europe, particularly in our two largest markets, France and Germany. However, we saw some improvement in activity, trading and customer confidence in Asia and the US," Chief Executive Officer Nicholas Kirk said.
Within total gross profit for the second quarter, profit in the Europe, Middle East & Africa region was down 18% on a year before and the UK down 14%. However, the Americas was down just 5.7% and Asia down 3.2%.
Kirk added: "The conversion of accepted offers to placements remained the most significant area of challenge, as ongoing macro-economic uncertainty continued to impact confidence, which extended time-to-hire. Permanent recruitment continued to be impacted more than temporary, as clients sought flexible options and permanent candidates remained reluctant to move jobs."
Gross profit in the second quarter from permanent recruitment was down 14% on a year before, while temporary was down 10%.
PageGroup expects 2025 operating profit to be "broadly in line" with current market consensus of around GBP22 million. This would be more than halved from GBP52.4 million in 2024, a result itself halved from GBP118.8 million in 2023.
PageGroup shares were up 2.9% to 275.80 pence early Thursday in London, but they remain down 32% over the past 12 months.
By Tom Waite, Alliance News editor
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