PageGroup Q2 profits rise; Brexit worries hit UK ops

Recruitment specialist PageGroup said the uncertainty in the lead up to the Brexit vote had led to a decline in second quarter UK profits, although the group's gross profits were up 3.7% on constant currency rates to £156.9m.

"It is too early to say how the result of the EU Referendum will impact our results going forward, but the environment leading up to the vote caused a slightly weaker result in June,” the company said in a trading statement.

“With continued uncertainty in the UK following the referendum result, ongoing challenges in some of our other larger markets, the unpredictable nature of the current cycle and our limited visibility, we will continue to focus on driving profitable growth, whilst remaining able to respond quickly to any changes in market conditions."

The UK declined 2.3% in the quarter, with uncertainty impacting clients' decision-making in the lead up to the EU Referendum.

Page saw good performances in Continental Europe and Latin America (ex-Brazil), which combined now account for around 45% of the group.

"However, the challenging market conditions in several of our larger markets, including Greater China, the UK and Brazil, continued," it said.

"Current market conditions remain stronger at lower salary levels and in temporary roles and this was reflected by the strong growth of 9% in our Page Personnel business, where temporary recruitment represents 40% of gross profit. Our Michael Page business, where temporary recruitment represents only 16%, grew 2%. Overall, temporary recruitment grew by 6.5%, compared to 2.9% in permanent.”