(Alliance News) - PageGroup PLC on Thursday said 2019 was a "record year" for the company but coronavirus outbreak and a number of economic challenges has dented profit for the first two months of 2020.
Shares in the recruitment company were up 3.5% at 382.60 pence each in London.
"The slowing growth that we saw in the second half of 2019, caused by a number of macro-economic challenges, have continued in the first two months of this year. In addition, we have seen the emergence of COVID-19 in Greater China. This, combined with the existing challenges, led group gross profit to decline by -3% in these first two months," said Chief Executive Steve Ingham.
"Looking forward, in Greater China, many of our clients have not been able to return to work with the same speed and therefore we expect a significant impact in March, one of our largest months of the year, and potentially beyond. With COVID-19 now impacting other markets around the world, it is too early to estimate the impact on the group's operations. We will continue to monitor the situation closely and will provide updates as necessary," he added.
For 2019, the company recorded pretax profit of GBP144.2 million, up 1.4% from GBP142.3 million a year ago, on a 6.7% rise in revenue to GBP1.65 billion from GBP1.55 billion. Operating profit increased 3% to GBP146.7 million.
The company's conversion rate for 2019 was 17.1%, down from 17.5% in 2018, primarily due to tough trading conditions in a number of the company's markets.
PageGroup has proposed a final dividend of 9.40p per share, up from 9.00p paid a year ago. Total payout for 2019 has been increased by 4.6% to 4.30p from 4.10p paid in 2018.
By Tapan Panchal; tapanpanchal@alliancenews.com
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