PageGroup PLC on Monday backed its annual guidance but warned recruitment markets remain challenging given ongoing macro-economic uncertainty.
The Weybridge, Surrey-based international recruiter said it continues to see ‘challenging market conditions’ throughout the third quarter with no improvement in September after the seasonally quieter summer months.
Gross profit fell 14% to £201.4 million in the three months to September from £242.2 million a year prior, including a 16% drop in September alone.
Chief Executive Nicholas Kirk said: ‘Whilst most markets were sequentially stable, we experienced softer activity and trading in a number of European countries including France and Germany. The conversion of interviews to accepted offers remains the most significant area of challenge as the ongoing macro-economic uncertainty in the majority of our markets continues to impact candidate and client confidence negatively. In this context, permanent recruitment continues to be impacted more than temporary.’
In Europe, the downturn was most pronounced in Germany where gross profit fell 19%. Overall, Europe, Middle East, Africa gross profit slid 16%.
Gross profit fell 10% in the Americas and by 17% in Asia Pacific, including a 25% drop in Greater China.
In the UK, gross profit fell 14%, with Page Personnel falling 19%.
Despite this, PageGroup expects 2024 operating profit to be broadly in line with current market consensus of £58 million. That will be halved from £118.8 million in 2023, which itself was down 39% from £194.4 million in 2022.
The firm said as clients’ recruitment budgets have ‘tightened they have become more risk averse,’ which has continued to slow the recruitment process, impacting time-to-hire.
Salary levels remain strong, although offers made to candidates were not as elevated as they were in 2022 and early 2023.
Headcount fell 1.8% quarter-on-quarter, but PageGroup said it intended to hold fee earners broadly at existing levels.
‘Given the group’s fundamental strengths, we believe we will continue to perform well despite the challenging environment, and we are confident in our ability to implement our strategy, driving the long-term profitability of the group,’ Kirk added.
Shares in PageGroup slippeded 0.9% to 367.20 pence each in London on Monday morning.
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