PageGroup says 2025 to meet market expectations despite fall in fees

(Alliance News) - PageGroup PLC on Wednesday reported a "resilient" third-quarter performance despite "subdued levels of sentiment and confidence" in European hiring markets, saying 2025 operating profit will meet market expectations.

The Surrey, England-based recruitment firm said it expects operating profit for 2025 to be largely in line with market consensus of GBP21.5 million, so down more than half from GBP52.4 million in 2024.

Shares were up 4.2% to 243.60 pence early Wednesday in London, though they remain down 34% over the past 12 months.

Gross profit declined 6.8% to GBP187.8 million in the third quarter from GBP201.6 million a year before, or by 6.7% at constant currency rates.

PageGroup said it grew in the US and Asia, but Europe "remains challenging".

Gross profit in the America - 19% of PageGroup's total - rose by 0.4% at actual currency rates or 3.5% at constant rates.

In Asia Pacific - 17% of the total - gross profit was down by 4.8%, or by 1.2% at constant currency. However, PageGroup said Asia on its own - meaning excluding Australia - saw a 1% increase in gross profit. Australia was down 12% and mainland China was down 20%, both at constant currency, but India was up 11% and Hong Kong up 8%.

However, in Europe, Middle East & Africa - 52% of the group total - gross profit was down 8.1% on year, or 10% at constant currency. The UK was down 14%.

"We continued to experience subdued levels of sentiment and confidence in Europe, particularly in our two largest markets, France and Germany, as well as in the UK," Chief Executive Officer Nicholas Kirk said.

"However, we delivered a fourth consecutive quarter of growth in the US, our fourth largest market, and a second consecutive quarter of growth in Asia. Collectively, these two markets represent a quarter of the group."

Kirk also said PageGroup is on course to deliver GBP15 million in annualised cost saving from 2026 onward.

The company reduced its fee earner headcount by 2.3%, or 120 positions, in the third quarter, mainly in Europe, it said.

Restructuring costs to deliver the GBP15 million in annual savings will be the same GBP15 million, though this is a one-off expense, with GBP13 million of this already incurred in the first half of the year.

PageGroup said it will issue a fourth-quarter trading update on January 13.

By Tom Waite, Alliance News editor

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