Recruiter PageGroup PLC (LON:PAGE) said it expects full-year operating profit to exceed market forecasts after strong growth in international job markets and an improvement in Brexit-hit UK bolstered third quarter results.
Gross profit in the third quarter rose 17.2% to £207.7mln from £177.2mln the same period a year ago, led by demand in Europe and the Asia Pacific.
The UK, which has seen a slowdown in the recruitment market due to employers exercising more caution amid Brexit uncertainty, delivered a 0.8% increase in gross profit to £35.2mln. That marked a recovery on the 1.9% decline posted in the second quarter.
The UK makes up 17% of total gross profit.
READ: PageGroup delivers first-half profit growth, led by international job markets
PageGroup’s largest market -- the European, Middle East and Africa region -- generated gross profit of £94.6mln, up 19.3% on the previous year and accounting for 46% of the total.
The key drivers of the EMEA region’s solid result were France and Germany, which achieved gross profit growth of 21% and 34%, respectively.
Asia Pacific posted a 24.1% increase in gross profit to £46.0mln, representing 22% of the total, with growth in Greater China, Singapore, Japan, India and Australia.
The Americas, which makes up 15% of the total, achieved a 22.7% gain in gross profit £31.9mln boosted by record quarters in the US and Canada.
PageGroup sees 2018 profit ahead of estimates
Chief executive Steve Ingham said: “We are pleased with the group's continued strong performance and now expect 2018 operating profit to be marginally ahead of the consensus of current market forecasts."
The company compiled consensus forecast for operating profit currently stands at £138.7mln.
Interim and special dividends of 16.83p each were being paid on Wednesday and the firm said there have been no significant changes to its financial position since the first half ended June 30.
As of September 30, the group had net cash of £122mln before the payment of dividends, up from £87mln on June 30.
Shares rose 2.2% to 557p in morning trading.
Liberum maintains 'hold' rating amid economic uncertainties
"Given the strength of trading in the (first nine months of 2018) we would not be surprised if the group eventually outperformed these increased expectations, but given the current macroeconomic uncertainties, we understand the relative prudence at this stage," Liberum said.
"Given the recent weakness in the shares, we would expect the shares to react positively to the update."
Liberum maintained a 'hold' rating but raised its target price to 590p from 560p.