Shares in PageGroup PLC (LSE:PAGE) fell in the wake of an unfavourable (though not unexpectedly so) first-quarter trading update.
The largest of the UK’s three major listed recruitment firms saw gross profits fall by 13% to £219 million in the first quarter, with the UK as the worst-performing region.
“We continued to see clients deferring hiring decisions and candidates cautious about accepting offers,” PageGroup said, noting that temporary demand was stronger.
PageGroup’s first-quarter performance suggests “no real sign of improvement in global job markets, with the UK in particular turning any corner rather slowly”, said AJ Bell investment director Russ Mould.
He added: “However, the FTSE 250 index member’s shares are retreating from levels near their one-year high and these figures probably reflect decisions taken several months back, given the lengthy lead times involved in headcount changes by employers, so the picture may not be quite as bleak as it seems.”
For Jefferies’ analysts, PageGroup’s results were even worse than predicted, with net fees coming in 3% below consensus and “weaker than expected momentum in every division except Americas”.
Recruitment earnings season continues tomorrow, when smaller cap competitor Robert Walters reports its first quarter, followed by Hays PLC (LSE:HAS) on Wednesday.
PageGroup shares were tossed 7% lower to 450p on Monday.