Hopes are not particularly high for recruitment firm PageGroup PLC (LSE:PAGE)’s next trading update due on Monday 15 January.
The middle child of Britain’s three major recruitment firms, PageGroup’s preliminary results follow underwhelming performances from FTSE 250 constituent Hays PLC (LSE:HAS) and small-cap competitor Robert Walters PLC (LSE:RWA).
If Tuesday's profit warning from Hays sounded alarm bells for the recruitment sector, then Robert Walters’ Thursday trading update added fuel to the bearish narrative.
While Robert Walters did manage to match market expectations, the bar wasn’t set particularly high, with a 10% decline in net fee income and 9% headcount reduction.
PageGroup’s headwinds are compounded by a greater focus on full-time employment than its two main competitors at a time when growth in temporary recruitment has remained stronger than the permanent segment.
PageGroup itself stated that this trend “is indicative of the current uncertainty in the market with many clients seeking more flexible options”.
PageGroup’s current full-year profit guidance is between £125 million and £150 million, including a £5 million exceptional cost.
Investors will be anxious to see if the company follows in Hays’ footsteps with a downgrade.