PageGroup H1 profits grow but outlook cautious

In the six months to 30 June, pre-tax profit grew 80% to £114.5m, while revenues were up 27.5% at £977.3m, as the company hailed a strong performance across its geographies, disciplines and brands,

The interim dividend was lifted to 4.91p a share from 4.70p in the same period a year earlier.

PageGroup said it had seen "a slight slowing in time to hire" in some of its markets in July and that it continues to closely monitor its forward-looking KPIs. Nevertheless, it reaffirmed its expectations for full-year operating profit to be in line with company-compiled consensus of £206m.

Chief executive Steve Ingham said the company’s performance was particularly pleasing given that 2021 had been a record year for gross profit and operating profit.

"This performance was achieved despite the backdrop of macroeconomic and geopolitical uncertainty as well as continued Covid-19 restrictions in certain markets. We believe that our strategy of maintaining and investing in our platform throughout the pandemic by investing in experienced hires and focusing on technology and innovation, has been key to us achieving these outstanding results," he said.

Gross profit per fee earner, PageGroup’s measure of productivity, reached a new record level, rising 9.2% to £82.8k.

"The group continued to benefit from favourable trading conditions, including wage inflation and increased fee rates resulting from the high demand and short supply of candidates, in addition to a shorter time to hire facilitated by video interviewing and investments in new systems," Ingham said.

At 0900 BST, the shares were down 7% at 419.20p.