PageGroup, a prominent recruitment company, announced a 6.2% decline in gross profit for the second quarter. Despite this setback, the company anticipates that its operating profit for the year will align with the consensus of £137.6 million ($177.9 million) as compiled by the company.
During the period, PageGroup’s gross profit amounted to £263.5 million, reflecting a decline from the record £280.9 million achieved in the corresponding period last year. However, the company successfully generated an operating profit of £196.1 million in 2022.
While the Europe, Middle East, and Australia division of PageGroup delivered commendable performance, challenging market conditions significantly impacted operations in Asia, the U.K., and the U.S. The adverse conditions persisted from late 2022 into the second quarter of 2023, resulting in decision-making delays and candidates becoming more hesitant to accept offers.
Looking ahead, PageGroup acknowledges the existence of considerable global macroeconomic and political uncertainties across its markets. Nevertheless, the company remains optimistic about the availability of quality candidates and ample job vacancies, accompanied by sustained high fee rates.
PageGroup attributes its positive outlook to its investments in innovation and technology. Furthermore, the company takes pride in its adaptable and diversified business model, a robust balance sheet, and a continuously reviewed cost base.
