Recruiter PageGroup PLC raised its 2018 guidance after delivering a record quarterly gross profit, even as Brexit uncertainty continued to deter UK employers from hiring staff.
Total gross profit in the second quarter rose 14.5% to £208.2mln from £181.8mln the same period a year ago as growth across international job markets mitigated a poor performance in the UK.
“This is the first time the group has generated more than £200mln in a quarter and is the highest quarterly growth rate for seven years,” said chief executive Steve Ingham.
The UK division saw gross profit fall 1.9% year-on-year to £36.6mln, which accounted for 17% of the total. However, this marked an improvement on the 7.1% slump reported in the first quarter due to the timing of Easter.
International businesses drive growth
The European, Middle East and Africa region achieved a 19.8% jump in gross profit to £100mln, representing 48% of the total.
France grew 15% despite mid-week bank holidays and the disruption of strikes while Italy and the Netherlands increased 23% and 18%, respectively. Growth in Spain was “limited” at 8% growth due to political challenges in Catalonia, which has been seeking independence.
READ: PageGroup delivers record quarterly gross profit despite slump in UK recruitment
Gross profit in the Asia Pacific gained 15.3% to £41.3mln while the Americas generated £30.9mln, up 19.6% on the previous year. The Asia Pacific accounted for 20% of group gross profit and the Americas represented 15%.
Gross profit in permanent recruitment was up 17.6% in the quarter and temporary recruitment rose 10.7%.
The total gross profit for the first half was £396mln, a 12.5% increase from £352mln a year earlier. The company added 319 net fee earners in the first half, bringing the total to 5,816. The total headcount stood at 7,457.
PageGroup lifts full year profit forecast
The company now expects operating profit in 2018 to be “slightly ahead” of the consensus market forecast of £134mln.
"We are pleased with the group's strong performance in the first half,” Ingham said.
"However, there remain challenges in a number of our markets, including Brexit in the UK, trading in Catalonia and forthcoming elections in Latin America."
"We will continue to focus on driving profitable growth as we progress towards our Vision of 10,000 headcount, £1bn of gross profit and £200m - £250mln of operating profit, while being able to respond quickly to any changes in market conditions."
In morning trading, shares rose 1.2% to 598p.