Recruiter Page Group’s profit craters as jobs market slowdown continues
Recruitment giant Page Group’s profit more than halved as the industry grapples with a slowdown in hiring among UK employers and wide macro-economic uncertainty.
Pre-tax profit fell 56.2 per cent to £27.2m in the six months ended 30 June, while earnings per share came in nearly a third lower year-on-year, at 5.3p.
Revenue decreased 13.1 per cent to £898m.
It comes shortly after new figures from KPMG and the Recruitment and Employment Confederation (REC) revealed a drop in permanent staff placements in July, as large employers made more redundancies and hired fewer new starters.
Page Group shares are down over 15 per cent this year to date.
Nicholas Kirk, chief executive Officer, said: “The Group experienced challenging market conditions across all regions in the first half, with a softening in activity levels towards the end of the period, particularly in terms of new jobs registered and number of interviews undertaken.
“The conversion of interviews to accepted offers continues to be a significant area of challenge, as candidate and client confidence remains subdued, reflecting the macro-economic uncertainty in the majority of our markets.
He added: “Permanent recruitment continues to be impacted more than temporary, as clients seek more flexible options and permanent candidates remain reluctant to move jobs.”
Page Group has cut headcount over the last year but said on Thursday its intention was to “broadly hold fee earners at existing levels” to take advantage of an anticipated improvement in sentiment and confidence in the industry.
“We have a highly diversified and adaptable business model, a highly experienced management team, a strong balance sheet and our cost base is under continuous review,” Kirk told shareholders.
The recruiter is planning an interim dividend of 5.36 pence per share, an increase of 4.5 per cent year-on-year.