A difficult fourth quarter but PageGroup posts higher profits
RECRUITMENT FIRM PageGroup posted higher gross profits for 2019 despite a difficult fourth quarter and slower hiring in the UK.
The company saw shares lift higher after gross profits increased by 5 per cent to £856m as it was buoyed by trading in mainland Europe and the Americas.
However, its performance dipped in the fourth quarter, as it posted a 2.6 per cent decline in gross profit to £205.6m for the three months to December.
In the UK, gross profits slid 4.8 per cent to £31.9m for the quarter as it was hampered by Brexit-related caution among businesses.
Page said strong performances in India, Germany and the US helped to offset the impact of “challenging” conditions in the UK, China and France.
It added that it anticipates that tough trading conditions from the fourth quarter in many regions will continue into 2020.
The company said its trading was in line with expectations and it expects operating profits for the year to have been between its guidance of £140m and £150m.
Chief executive Steve Ingham said yesterday: “The majority of the group’s regions were impacted by macro-economic and political uncertainty in quarter four.
“However, we have a flexible and highly diversified business model that enables us to react quickly to changes in market conditions.
Mr Ingham added yesterday: “We are clear leaders in many of our markets, with a highly experienced senior management team, which, we believe, positions us well to take advantage of all opportunities during 2020.”
PageGroup issued two profit warnings in 2019 as it stumbled amid tough trading conditions in some of its key markets.
Fellow recruiter Robert Walters saw its shares drop last week after revealing that its UK profits plunged 23 per cent on the back of Brexit and political uncertainty.
Shares in PageGroup rose 3.1 per cent to 482.6p in early trading on Tuesday.
The group was established in 1976. It now employs more than 7,500 people in 36 countries
The four core PageGroup brands are made up of specialised recruitment teams that operate across 25 disciplines, ranging from actuarial to technology.