PageGroup PLC (PAGE) reported a worsening in trading conditions at the end of 2019 and said it expects challenges to continue in 2020.
However, the FTSE 250 recruiter said it still expects full-year operating profit to be in line with its previous guidance of £140mln-£150mln.
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In the fourth quarter, gross profit dipped 0.4% in constant currencies from the 2.1% growth seen in the third quarter, meaning group gross profit rose 5% for the year to £856.0m, still a record year.
This was despite fee-earner headcount being shrunk by 89 over the year, with the reduction in the fourth quarter attributed to “heightened geopolitical and macro-economic uncertainty seen in a number of the group's markets”.
On the upside, “high potential” markets grew 4%, despite Asia Pacific registering a 7.9% decline, including China’s 14% shrinkage. The Americas continued to be the fastest growing region, up 5.0% in the quarter.
Adverse foreign exchange movements impacted during the quarter, decreasing reported gross profit by 2.2 percentage points, and management expect the headwinds “will persist, or possibly increase”.
“Looking ahead, the tough trading conditions experienced during Q4 across the majority of our regions are anticipated to continue,” said chief executive Steve Ingham.
“In the UK, Brexit related uncertainty is expected to be ongoing during 2020,” he added.
“However, we have a flexible and highly diversified business model that enables us to react quickly to changes in market conditions. We are clear market leaders in many of our markets, with a highly experienced senior management team, which, we believe, positions us well to take advantage of all opportunities during 2020.”