Page Group posts strong profit growth worldwide – but UK business falters
Recruiter Page Group has today announced a record quarterly gross profit of £208.2m, representing 14.5 per cent growth, for the second quarter (Q2).
Despite strong growth throughout its business, in the UK profits contracted by 1.9 per cent for Q2 and 4.5 per cent for the first half (H1).
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Chief executive Steve Ingham said this was “because of the continued impact from the uncertainty related to Brexit” but noted it was an improvement on the 7.1 per cent fall in profit in Q1.
Ingham also said he expected the company to beat analyst's forecasts for 2018.
“In 2018 we now expect operating profit to be slightly ahead of the consensus of current market forecasts," he said.
In Q2 the group's Europe, Middle East and Africa segment grew profit 19.8 per cent, Asia Pacific by 15.3 per cent and Americas by 19.6 per cent during the quarter.
Ingham said: "The group grew 16 per cent in constant currencies in Q2, delivering a record quarterly gross profit of £208.2m, with 20 countries growing over 20 per cent. This is the first time the group has generated more than £200m in a quarter and is the highest quarterly growth rate for seven years.”
The company experienced strong growth in what it calls its “large high potential markets” which grew by 24 per cent collectively.
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The UK, which amounts to 17 per cent of the business, was the only one of what it called its “large proven markets” not to see growth.
France, which is 16 per cent of the group, grew 15 per cent and Italy and the Netherlands grew 23 per cent and 18 per cent respectively.
Spain grew by just eight per cent, which Ingham ascribed to the political turmoil in Catalonia, while Australia grew by 10 per cent.
Ingham said: "We are pleased with the group's strong performance in the first half. However, there remain challenges in a number of our markets, including Brexit in the UK, trading in Catalonia and forthcoming elections in Latin America.”