PageGroup PLC (LSE:PAGE) shares wobbled but quickly recovered as the recruiter reported a fall in first-quarter profit as weaker hiring conditions in the UK and Europe offset growth in the Americas and Asia Pacific.
The FTSE 250 group said gross profit fell 4.9% to £187 million, reflecting “ongoing subdued levels of client and candidate confidence” amid heightened geopolitical and macro-economic uncertainty.
This compared to a 60% fall in operating profit in the past calendar year, as revenue fell 8.2%.
Chief executive Nicholas Kirk said the group "produced another resilient performance despite a backdrop of heightened geopolitical and macro-economic uncertainty", with performance uneven across regions.
Strong growth in the US and Asia Pacific marked a sixth and fourth consecutive quarter of expansion, respectively, while conditions in Europe and the UK remained challenging.
Kirk noted "lower levels of candidate and client confidence", particularly in France and the UK.
The group continued to shift resources towards higher-growth markets, adding more than 100 fee earners in the Americas and Asia Pacific while reducing headcount in Europe and the UK.
However, the war in the Middle East has created a "heightened degree of uncertainty" for the rest of the year, Page said.