PageGroup (LSE:PAGE) PLC (LSE:PAGE) has announced it will resume paying dividends after a pandemic-induced break and a solid first half.
The recruiter also swung back to an interim profit as trading recovered with its markets reopening the economy.
READ: Recruiter PageGroup too cheap given strong recovery tailwind, suggests RBC
Chief executive Steve Ingham stressed that COVID-19 uncertainty remains, while “it is not clear whether the improved performance is still the result of pent-up supply and demand, or a sustainable trend”.
Last month, the FTSE 250 group upgraded its operating profit outlook for the full year and expects to deliver figures around £125-135mln.
In the six months to 30 June, revenue jumped 17% to £766mln, with profit before tax of £63mln compared to a £1mln loss in 2020. However, both figures were below of 2019 levels of £820mln and £74mln respectively.
Net cash at period-end was £163mln.
The interim dividend was hiked 9% to 4.7p per share compared to 2019 which, added to a special payout of 26.71p per share, means PageGroup (LSE:PAGE) will return £100mln to shareholders this October.
“The bad news is PageGroup (LSE:PAGE) isn’t sounding quite as upbeat about the remainder of the year as the emergence of new Covid variants sees restrictions remain in place in several of its markets,” analysts at AJ Bell noted.
“Another issue facing the staffing companies is a shortage of available candidates to fill vacancies across a range of industries from hospitality to logistics. While this should drive up fees and commissions in the short term it could hit their growth prospects in the longer term.”
Shares slipped 4% to 600p on Monday morning.