PageGroup posts record quarter despite some headwinds

PageGroup posted a record first quarter profit in a trading update on Wednesday, with gross profit up 12.3%, or 10.3% on a reported basis, to £187.7m.

The FTSE 250 recruitment firm said its “large, high potential markets”, which make up 31% of the group, grew 21%.

On a regional basis, Europe, Middle East and Africa was ahead 18.2%, with France rising 18% and Germany up 28% within that.

The UK market slid 7.1%, with the board noting that confidence in the country continued to be impacted by uncertainty.

In Asia Pacific growth was 13.8%, with Greater China ahead 17%, south east Asia up 19%, and Australia rising 6%.

The Americas were 20.4% higher, with North America rising 16%, the US 17%, Latin America up 26%, and Brazil posting growth of 12%.

Even with the record result, the timing of Easter still impacted first quarter results, with the full impact of the long weekend in the second quarter of last year.

PageGroup said it now had a record headcount of 7,311, having invested in 183 fee earners in the quarter.

It also reported a “strong” balance sheet, with net cash of £91m at period end, up from £86m a year ago.

“Adverse foreign exchange movements during Q1 impacted performance, decreasing reported gross profit by two percentage points, or around £3m,” said chief executive Steve Ingham.

“We are pleased with the strong Group performance in Q1, which was achieved despite the timing of Easter, and we are encouraged by the growth seen in the majority of our markets.”

However, he noted that a number of macro-economic uncertainties remained, including Brexit in the UK, challenges in Catalonia, the potential impact of strikes in France, and Brazil's forthcoming elections.

“Looking ahead, we will continue to focus on driving profitable growth, while being able to respond quickly to any changes in market conditions.

“At this early stage of the year, we are comfortable with current market consensus for full year operating profit of £132m.”