PageGroup reports rise in Q3 profit but cautious on UK, short-term outlook

FTSE 250 recruitment firm PageGroup reported a rise in total third-quarter profit but a drop in the UK, as it expressed caution following the result of the EU referendum.

Total gross profit was up 14.1% from the same period a year ago to £158.6m, but in the UK profit fell 4.7% to £37.8m as Page said continued uncertainty following the Brexit vote impacted its multi-national clients.

Page said it benefited from foreign exchange movements in the quarter, which increased reported gross profit by 12.8 percentage points, or £17.8m. At constant currencies, group profit was up just 1.3%.

In the permanent division, gross profit was up 13.8% to £119.5m while the temporary business saw profit rise 15% to £39.1m.

Chief executive officer Steve Ingham said: “With the prevailing uncertainty in the UK, the challenges in some of our other larger markets and the unpredictable nature of the current cycle, we remain cautious in our short-term outlook.

“However, we will continue to progress our strategic projects, such as our European Shared Service Centre, as well as driving profitable growth and taking advantage of growth markets. As always, we remain able to respond quickly to any changes in market conditions.”