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The Markets
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The Markets
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Business & education services

PageGroup reports record second quarter profits even as Brexit weighs on UK hiring

PageGroup experienced a slowdown in UK hiring as Brexit uncertainty hurt business confidence

Recruitment firm PageGroup plc (LON:PAGE) achieved record profits in the second quarter as growth in hiring in Europe offset a slowdown in the UK.

Total gross profit rose to £182.0mln from £156mln the same period a year ago, a 7.7% rise excluding fluctuations in the exchange rate.

The company shrugged off fewer working days due to Easter falling in the second quarter.

Results were supported by a record headcount of 6,448, with 178 fee earners added in the quarter, compared to 98 in the first three months of the year.

Temporary placements were 10.2% higher at constant currency while permanent placements rose 7.0%.

Brexit uncertainty impacts UK hiring

However, UK gross profit fell 4.5% at constant currency to £36.6mln from £38.3mln as Brexit and political uncertainty knocked business confidence. The UK accounts for about a fifth of the group’s total profits.

In the Europe, Middle East and Africa division, gross profit jumped 13.2% at constant exchange rates to £83.7mln from £67.6mln, driven by Germany and France.

Gross profit in the Americas climbed 13.8% to £25.9mln from £20.4mln while the Asia Pacific saw a 6.8% gain to £35.8mln from £30.6mln.

First half gross profit rises despite UK slowdown

In the first half, gross profit increased 8.3% to £352.2 from £299.2mln a year ago, with growth in a majority of its markets apart from the UK.

"We are pleased with the strong performance across the majority of our regions, bearing in mind the timing of Easter,” said chief executive Steve Ingham.

“However, there remain a number of uncertainties as we continue through 2017, including the impact of Brexit negotiations and political uncertainty in the UK, elections in Germany and Brazil's ongoing macro-economic challenges.

Ingham said the outlook for full year operating profit is in line with consensus expectations £111.5mln. He said the company would continue to focus on delivering profitable growth, while being able to respond quickly to any changes in market conditions.

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