PageGroup Q1 profit falls as workers decline firm job offers

Recruitment company PageGroup on Monday maintained guidance as it reported a 2.4% decline in first quarter profits, driven by sharp falls in the US and Asia as potential staff declined firm job offers and clients delayed hiring decisions.

The company posted gross profit of £262.7m on a constant currency basis, in actual terms a foreign exchange tailwind helped profits to rise by 1.8%.

In the US, profits fell 7% and Asia-Pacific 17%, offsetting a 6.8% rise in Europe, Middle East and Asia, Page’s biggest market.

"The challenging conditions we saw towards the end of 2022 continued into 2023, with lower levels of both candidate and client confidence resulting in delays in decision making and candidates being more reluctant to accept offers. Reflecting the uncertainty, temporary recruitment outperformed permanent, as clients sought more flexible options,” the company said.

"Looking forward, there remains a high level of global macro-economic and political uncertainty in the majority of our markets. However, against this backdrop, we continue to see candidate shortages and good levels of vacancies.”

“Given our highly diversified and adaptable business model, with a cost base that can be adjusted rapidly and a strong balance sheet, we believe we will continue to perform well despite the uncertainty and, at this early stage of the year, expect 2023 operating profit to be in line with company compiled consensus of £140m."

Reporting by Frank Prenesti for Sharecast.com