14th Oct 2020 09:58
(Alliance News) -Â PageGroup PLC on Wednesday reported improving conditions in the third quarter, resulting in a more moderate decline in profit.
The recruitment firm said gross profit in the three months to September 30 was GBP143.5 million, down 32% on a year ago at constant currency - though an improvement on the 48% fall seen in the second quarter of 2020.
"We exited the quarter in September at -26%, with some markets, such as Mainland China and Japan, either flat or returning to growth," noted Chief Executive Steve Ingham.
He added: "The improving trading conditions resulted in the group making a small profit in the quarter, despite an increase in our cost base over Q2 as we returned staff from furlough and to full pay from 1 July."
By region, gross profit in the UK fell 48% at constant currency to GBP17.6 million, while Europe, Middle East & Africa registered a 25% fall to GBP76.5 million. Asia Pacific profit fell 28% to GBP30.3 million, and the Americas region was down 42% to GBP19.1 million.
PageGroup said its financial guidance remains suspended given the uncertainty caused by Covid-19, particularly with a second wave of coronavirus infections now hitting many countries.
"We know the future remains unpredictable, but we believe now is the right time to continue to invest in our flexible and highly diversified business model. Having seen conditions improve through Q3, we now look forward to driving improved activity and gross profit in Q4," said CEO Ingham.
Shares in PageGroup were up 0.5% at 413.27 pence in London on Wednesday. The stock has fallen more than 205 in the year so far.
By Lucy Heming;Â [email protected]
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