PageGroup PLC (LON:PAGE) posted quarterly profits higher than 2019 although the UK market was still well below pre-pandemic levels.
Trading improved gradually month by month, but the recruiter admitted it’s not clear whether the improved performance is still the result of pent-up supply and demand or a sustainable trend.
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Nonetheless, full-year operating profit is expected to be £125-135mln, compared to £17mln in 2020 and £146.7mln in 2019, after a solid first half of the year.
Profits were also helped by lower costs as headcount is down 8% on the pre-pandemic level at the end of 2019, though the FTSE 250 company plans to hire more people.
In the quarter to 30 June, group gross profit came in at £219mln, 94% higher than last year and 2% higher than 2019, the best-ever for the group.
It was a record quarter for four out of five “large, high potential” markets and in 17 countries, however, France and the UK saw declines of 11% and 9% respectively compared to 2019.
Net cash at 30 June was £168mln.
“Anecdotally in the UK, there has been a shortage of people looking for their second or third job. They’ve lacked the confidence to move from their existing role for fear of being last in, first out should there be any Coronavirus (COVID-19)-related setback which causes job cuts in the months ahead,” said AJ Bell investment director Russ Mould.
“That’s meant companies have been faced with the prospect of candidates who are either inexperienced or have too much experience and potentially may lack the required hunger and enthusiasm to excel in a new role.”
“Assuming the government’s plan to remove more COVID-19-related restrictions goes to plan in the coming weeks and doesn’t lead to another big wave of infections, one might expect individuals to feel more confident about wanting to move jobs.”
Shares rose 5% to 602p on Wednesday morning.