Page in retreat as firms delay hirings

MORE signs that firms are taking longer to reach hiring decisions sparked a fresh reverse for the shares of London-listed recruiters today. Page Group, which generates about 12% of its profit in the UK, said clients continued to seek more flexible options such as temporary placements while candidates have also been more cautious about accepting job offers.

Chief executive Nicholas Kirk added: “Conversion of final interviews to accepted offers is still the most significant challenge, as candidate and client sentiment remains subdued reflecting the general macroeconomic uncertainty in most of our markets.”

He said the slower finish to 2023 had continued into the first quarter of this year, with gross profit down 12.8% to £219.7 million in the three month period.

Profit in the UK fell 19.2% with Page’s largest division covering Europe and Middle East down by 12.7% on a constant currency basis.

More details on the UK jobs market will emerge tomorrow when official figures are set to show a slightly higher unemployment rate of 4% for the three months to February.

Shares in FTSE 250-listed Page gave up gains from earlier this month by retreating 5% or 23.2p to 461p, while Hays lost 3.15p to 93.35p ahead of its own update on Wednesday.

Science and technology recruitment specialist SThree fell 2% or 9p to 423p and All-Share stock Robert Walters weakened 6p to 407p.

The FTSE 250 index held firm despite the recruitment sector weakness, with the mid-cap benchmark outperforming London’s top flight with a rise of 21.42 points to 19,742.66.

Outsourcing firm Mitie was the best performing stock, up 8.4p to 120p to a seven-year high after it reported record revenues and operating profit in its year-end update. It also said it would buy back another £50 million of its shares.

Recent contract wins have included security work for Lloyds Banking Group and Sainsbury’s, as well as facilities management for London South Bank University.