PageGroup Q2 profit declines amid ‘challenging’ conditions

Group gross profit fell 6.5% versus the same quarter a year earlier to £263.5m, against a record comparative period. The recruiter pointed to a stronger performance from the temporary segment, which saw profit rise 11.1%, while the permanent segment saw an 11.4% drop.

Chief executive Nicholas Kirk said: "The group delivered a good result in the quarter, especially given the particularly tough Q2 2022 comparator, which is the group's record quarter. EMEA performed strongly, however, tough market conditions affected the performances in Asia, the UK and the US. Overall, group gross profit declined 6.5% in constant currencies against Q2 2022.

"The challenging conditions we saw towards the end of 2022 and in Q1 2023 continued into Q2, 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 uncertain macro-economic conditions, temporary recruitment outperformed permanent, as clients sought more flexible options."

PageGroup said it expects operating profit for 2023 to be in line with company-company consensus of £137.6m.