Pagegroup: UK profit slides as hiring slows at FTSE 250 recruiter
Recruitment firm Pagegroup reported a 12.7 per cent fall in UK gross profit for the first quarter of 2025, as client and candidate confidence remained subdued and hiring decisions continued to stall.
According to its latest trading update, the FTSE 250-listed firm posted UK gross profit of £23.5m in its first quarter, broadly in line with the previous three months.
Globally, group gross profit declined 9.2 per cent year on year to £194.2m, with demand across permanent and temporary recruitment remaining muted amid ongoing economic uncertainty.
The company attributed the decline to longer hiring processes and fewer accepted job offers, as both employers and candidates delayed decisions in the face of unpredictable economic conditions.
Temporary recruitment continued to outperform permanent roles, with the latter down 10 per cent globally.
Fee earner headcount was also reduced by 74 within the quarter – a 1.4 per cent drop. But, this was mainly driven by European markets.
Despite its decline in revenue, productivity held steady, down only one per cent year on year.
Pagegroup pledged to implement restructuring measures this year to simplify its management structure and reduce costs, leading to annual savings of around £15m from 2026 onwards.
The changes will result in a one-off charge of £15m in 2025, with a net earnings before interest and taxes (EBIT) impact of £10m.
Looking ahead, the company did not provide forward guidance, due to ongoing market unpredictability.
“Our focus remains to balance near term productivity with ensuring we are well placed to take advantage of opportunities when market conditions improve”, said Nicholas Kirk, chief executive of the firm.