8th Oct 2019 12:08
(Alliance News) - FTSE 250-listed recruitment firm PageGroup PLC said Tuesday its profit for the third quarter of 2019 rose despite most regions being hit by increased macro-economic and political uncertainty during the period.
Shares in PageGroup were 11% lower at 371.80 pence midday Tuesday in London.
For the quarter ended September 30, gross profit increased to GBP216.7 million from GBP207.9 million the same period the year before, a rise of 4.2% at reported currency rates and 2.1% at constant rates.
The Europe, Middle East & Africa region was the largest contributor in the quarter. Gross profit rose 7.0% to GBP101.5 million from GBP94.9 million, with strong growth in Germany and Italy.
Meanwhile the Americas had the strongest rate of growth, gross profit rising 17% to GBP37.3 million from GBP31.8 million in the prior year, on a robust performance from the US and Latin America.
However, Asia Pacific's profit fell by 4.0% to GBP44.1 million from GBP46.0 million, as PageGroup's operations in China declined on trade-tariff uncertainty and social unrest hurting its business in Hong Kong. US-China trade war concerns also affected the business in Singapore, it said.
Finally, gross profit from the UK dropped by 4.1% to GBP33.8 million from GBP35.2 million, as increased Brexit uncertainty took its toll on job candidate and client confidence at all levels within the period.
Looking ahead, due to continued uncertainty and PageGroup's limited forward visibility, the company expects operating profit for 2019 to be in the range of GBP140 million to GBP150 million.
In 2018, PageGroup's operating profit was GBP142.5 million.
"Looking ahead, the deterioration in trading conditions seen during the third quarter across the majority of our regions is anticipated to continue. In the UK, heightened Brexit related uncertainty is expected to remain as we approach and go beyond October 31," said Chief Executive Steve Ingham.
"With worsening macro-economic indicators in Continental Europe, particularly in Germany, and in the US, there are signs that growth in these markets may slow. In Greater China, confidence in Mainland China continues to be affected by trade tariff uncertainty and the social unrest in Hong Kong is increasing," Ingham added.
In the company's interim results in August, Chief Financial Officer Kelvin Stagg had said the PageGroup would "remain mindful of challenging macro-economic conditions seen in a number of our regions". Stagg said the company would continue to invest in its strategic "Vision" of 10,000 headcount, GBP1.00 billion in gross profit, and operating profit in the range of GBP200 million to GBP250 million.
By Dayo Laniyan; [email protected]
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