PageGroup PLC (LSE:PAGE) has followed fellow recruiter Hays PLC (LSE:HAS) in warning of lower-than-expected profit.
The international recruiter said full-year operating profit is expected to be slightly below previous guidance of £120 million to £125 million.
Chief executive Nicholas Kirk said while the firm was “still seeing good activity levels”, albeit a “deterioration in job flow through Q4”, these activity levels “are not all converting into gross profit due to ongoing lower levels of candidate and client confidence”.
The firm said gross profit in 2023 was down 8.9% to £237.3 million from the year before.
In the fourth quarter, gross profit slipped 11.1% with permanent fees down 16.9% but temporary fees up 3.9%.
In the UK, gross profit tumbled 19.9% in the quarter with EMEA (56% of group total) down 6.5%.