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(Alliance News) - PageGroup PLC on Wednesday said it expects to report a fall in annual gross profit, with a double-digit decline for the fourth quarter of 2020 as lockdown restrictions continue to stifle trading in many of the group's markets.
For the three months to the end of December, the Weybridge, Surrey-based recruitment firm reported gross profit of GBP121.3 million, down 19% from GBP205.1 million the same period the year before, as fee-earner headcount decreased by 78.
In Europe, the Middle East & Africa region, gross profit fell by 15% to GBP87.7 million, making up 53% of the group's total. Although PageGroup saw an improvement in trading conditions at the start of the quarter, local lockdowns at the end of the year affected the exit rates in some markets.
The sharpest rate of decline came in the UK, where gross profit dropped by 34% to GBP21.0 million, as conditions remained challenging with the imposition of regional lockdowns and Brexit-related uncertainty in December.
For 2020, PageGroup expects gross profit to fall by 29% year-on-year to GBP609.7 million from GBP855.5 million, as fee earner headcount declined by 882 over the year to a total of 6,694.
Looking ahead, PageGroup said it is unable to provide any financial guidance for 2021 and beyond, as Covid-19 continues to influence the majority of the group's markets.
"As we enter 2021, there remains a high degree of global macro-economic uncertainty in many of our markets, as Covid-19 remains a significant global issue and lockdowns have returned in a number of the group's markets. However, in the UK we are encouraged that the Brexit deal has provided a degree of clarity. We remain confident in our strategy of maintaining our platform and continuing to carefully invest in headcount, as well as continuing to roll-out new technology and innovation," said Chief Executive Officer Steve Ingham.
Shares in PageGroup were down 1.2% at 452.40 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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