PageGroup Reports Q1 Profit Decline Amid Global Macro Headwinds

PageGroup has reported a decline in gross profit for the first quarter, reflecting a challenging macroeconomic environment across its primary operating regions. The UK-based recruitment consultancy saw its gross profit fall to £187.0 million, a 3.9% decrease compared to the £194.5 million recorded in the same period last year. On a constant currency basis, the decline was more pronounced at 4.9%. The downturn was most severe in the UK, where gross profit plummeted 11.4% to £20.9 million. While the company found growth in the Asia Pacific region, which saw a 4.5% increase to £29.2 million, this was insufficient to offset losses in EMEA, where profit declined 5.2% to £100.4 million, and the Americas, which saw a 1.5% dip to £36.5 million. Core business segments both struggled during the quarter. Permanent recruitment fell 3.5% to £135.1 million, while temporary recruitment dropped 4.8% to £51.9 million. Despite these headwinds, the company noted a 2% increase in productivity per fee earner. The total headcount of fee earners rose slightly by 0.5% to 4,994, as the firm shifted resources toward growth markets. Looking forward, management expressed caution regarding the remainder of the fiscal year. The company cited geopolitical risks, specifically the ongoing conflict in the Middle East, as primary drivers of an increasingly uncertain outlook. Despite the profit dip and cautious guidance, shares on the London Stock Exchange traded slightly higher, up 0.91% to 133.70 pence.