PageGroup profit rises as international strength offsets UK weakness

Recruiter PageGroup reported a jump in full-year profit on Wednesday as strength in the international business offset a weaker performance in the UK.

In the year to the end of December 2018, pre-tax profit was up 20.4% to £142.3m on revenue of £1.55bn, up 13% on the year. Operating profit increased 20.4% to £142.5m and basic earnings per share rose 22.6% to 32.5p.

The company recommended a final dividend of 9p per share, up 4.7% on the year, after paying a 4.1p interim dividend and a 12.73p special dividend in October.

Gross profit in the UK fell 1.7% to £138.4m but profit in the Americas was up 19.4% to £121m and EMEA profit increased 18% to £394.3m. In Asia Pacific, profit was up 17.5% to £161.2m, despite "more challenging" conditions in mainland China in the fourth quarter.

PageGroup said it experienced "challenging" market conditions throughout the year in its UK business as continued Brexit uncertainty impacted candidate and client confidence. Page Personnel, which represents a quarter of the UK, grew 8% and delivered a record year. However, Michael Page - its largest brand which is focused on more senior opportunities - was hit to a greater extent by the uncertainty and saw revenue decline 4%.

Chief executive officer Steve Ingham said: "We are mindful of the macro-economic uncertainties that exist, but we will continue to focus on driving profitable growth, while continuing our strategic investments towards our Vision of 10,000 headcount, £1bn of gross profit and £200m - £250m of operating profit.

"Our flexible and diversified business model ensures that we are able to respond quickly to changes in market conditions."

At 0910 GMT, the shares were up 1.6% to 456p.