11th Oct 2016 06:19
LONDON (Alliance News) - Recruitment company PageGroup PLC said Tuesday it saw a small rise in gross profit in the third quarter, but a decline in its UK business and a shift towards more temporary recruitment.
PageGroup reported a gross profit of GBP158.6 million in the third quarter, up 14% from GBP139.1 million in 2015. However PageGroup noted much of the rise was boosted by currency movements and said its gross profit grew by only 1.3% on a constant currency basis.
PageGroup reported gross profit in its permanent recruitment division was up by 1.0% on a constant currency basis, rising to GBP119.5 million from GBP105.1 million. Temporary recruitment gross profit increased by 2.0% in constant currencies to GBP39.1 million from GBP34.0 million.
However gross profit in PageGroup's UK division was down by 4.7% to GBP37.8 million from GBP39.7 million, which the company said was due to fragile confidence. PageGroup also noted that its Financial Services division in the UK was down by 14%, although Technology grew by 22%.
"With the prevailing uncertainty in the UK, the challenges in some of our other larger markets and the unpredictable nature of the current cycle, we remain cautious in our short-term outlook. However, we will continue to progress our strategic projects, such as our European Shared Service Centre, as well as driving profitable growth and taking advantage of growth markets," said Steve Ingham, chief executive officer.
By Adam Clark; [email protected]
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