PageGroup profits slide as UK recruitment slowdown bites
Recruiter PageGroup has posted a sharp drop in first half profits as subdued hiring across the UK and Europe weighed on performance, but the group stuck to its full year targets and pledged to press ahead with cost cuts.
The Surrey-headquartered FTSE 250 firm saw operating profit tumble to £2.1m in the six months to 30 June from £28.4m a year earlier after booking around £13m of restructuring charges.
Stripping out one offs, underlying profit came in at roughly £15m. Group gross profit fell 9.7 per cent to £389.7m.
The UK, which generates 12 per cent of the group’s gross profit, suffered a 13.4 per cent drop to £46.6m as both client and candidate confidence remained low, stretching out the time it takes to fill roles.
The division booked a £7m operating loss, though that was marginally better than the prior year.
Forecasts hold firm, but headcount down
Chief executive Nicholas Kirk said “The Group delivered a resilient performance in H1 despite ongoing macro economic uncertainty.”
“Whilst activity levels remained robust across most of our markets, we experienced a slight deterioration in activity levels and trading in Continental Europe towards the end of the period, particularly in our two largest markets, France and Germany.”
He added “Despite the uncertain outlook due to the unpredictable economic environment, we have a highly diversified and adaptable business model, a strong balance sheet and our cost base is under continuous review.”
PageGroup has been trimming headcount, with UK fee earners down nearly eight per cent in the half, and is targeting annualised savings of £15m from 2026 through a simplified management structure and efficiency drives.
Despite the weaker first half showing, the board kept its full year operating profit forecast broadly in line with market consensus of around £22m and declared an interim dividend of 5.36p per share, unchanged from last year.
Net cash fell to £10.8m from £57.2m a year ago, reflecting lower profitability and dividend payments.