Page Group profit tumbles amid job market woes and tariff uncertainty
Page Group has reported a hefty decline in half-year profit as recruiters grapple with a slowdown in the jobs market and uncertainty in global trade.
Gross profit fell 12.3 per cent to £389.3m year-on-year on a reported basis, with a notable 13.4 per cent decline in the UK.
British firms have been grappling with tax hikes and the global uncertainty created by US tariffs, leading to some of the most challenging conditions in the job market since the pandemic.
Page Group said converting accepted offers into successful, longer-term placements remained the most challenging area amid wider macro-economic uncertainty.
Temporary recruitment fell 9.5 per cent through the six months ended June 30, compared to a 13.4 per cent decline in permanent hires.
Despite the hurdles, the London-listed recruiter said it still expected full-year operating profit to fall in line with current guidance of around £22m.
Shares have fallen just over 20 per cent this year to date but edged up just over one per cent in early deals on Thursday.
“We delivered a resilient performance despite ongoing market and tariff related uncertainty, with mixed results across the group,” Nicholas Kirk, Chief Executive Officer at Pagegroup, said.
Kirk noted a “slight deterioration in activity levels and trading in Europe,” particularly in France and Germany. Gross profit in Europe, Middle East and Africa declined 17.1 per cent overall to £102.9m as market conditions worsened.
Kirk said permanent recruitment “continued to be impacted more than temporary, as clients sought flexible options and permanent candidates remained reluctant to move jobs.” While fee rates remained at high levels, client budgets have tightened and they have become more risk averse, Page Group added.
“Despite the uncertain outlook due to the unpredictable economic environment, we have a highly diversified and adaptable business model, a strong balance sheet and our cost base is under continuous review,” Kirk said.