PageGroup PLC (LSE:PAGE) has said a strong performance continued across its business in the third quarter and forecast that operating profit for 2022 will meet market expectations of £204mln.
However, the recruitment company noted that there has been a “slight softening” in client confidence in most of its regions and expressed caution about the high levels of macro-economic and political uncertainty.
In the third quarter to September 30, 2022, the company posted group gross profit of £270.5mln, a rise of 14.0% compared with the same period last year.
PageGroup noted that it had seen a “strong exit” in September, with gross profit exceeding £100mln for the third month, boosted by the strong dollar.
The company said it saw growth across most of its regions, with gross profit rising 22.1% in EMEA, 18.3% in the Americas and 9.5% in the UK. But in Asia Pacific, gross profit fell 3.9%, mainly due to a 26% decline in Greater China, which was impacted by COVID-19 lockdowns and restrictions.
“We delivered a good broad-based performance across the majority of our geographies, disciplines and brands, with record performances in nine countries despite the typically slower summer months,” said PageGroup chief executive officer Steve Ingham in the results statement.
He noted there had been a “slight softening” in client confidence across the majority of the company’s regions: “This led to a small number of jobs being withdrawn and a slowdown in time to hire in a number of our markets towards the end of the quarter."
Ingham also pointed out that temporary recruitment outperformed permanent during the period, “as clients looked for more flexibility in their resourcing and cost base, reflecting the current economic uncertainty”.
The company’s fee earner headcount grew by 337 to 7,071 in the third quarter, the majority of which were non-experienced hires.
Gross profit per fee earner, the company’s measure of productivity, declined by 8% compared to Q3 2021, due to the softening in client confidence and slowdown in time to hire, as well as a targeted investment in fee earners.
"Looking forward, there remains a high level of global macro-economic and political uncertainty, particularly regarding increasing inflation in the majority of our markets,” said Ingham.
Pagegroup's net cash as of September 30, 2022, was £186mln compared with £136mln at end-June and £195mln a year earlier.