LONDON (dpa-AFX) - PageGroup plc (MPGPF.PK, PAGE.L), a recruitment consultancy company, reported Wednesday lower gross profit in its first quarter with weak results in all business areas and regions.
The company noted that the tough conditions experienced in the preceding fourth quarter continued into the first quarter, with low levels of client and candidate confidence across most of its markets.
In the quarter, gross profit totaled 194.2 million pounds, down 11.7 percent from 220 million pounds last year. Gross profit dropped 9.2 percent at constant rates.
Gross profit from permanent recruitment fell 12.4 percent from last year to 140.4 million pounds, and accounted for 72 percent of total gross profit.
Gross profit from temporary recruitment was 53.8 million pounds, down 10 percent from the prior year, and represented 28 percent of total.
Among regions, gross profit in EMEA was down 14.5 percent to 105.7 million pounds, in Americas dropped 1.1 percent to 37.0 million pounds, Asia Pacific declined 12.7 percent to 28.0 million pounds, and UK was down 12.7 percent to 23.5 million pounds.
Looking ahead for fiscal 2025, PageGroup said its outlook is uncertain due to increasingly unpredictable economic environment.
Citing the recent introduction of tariffs and the resultant market uncertainty, the company said it is not providing forward-looking guidance on business performance.
PageGroup's planned changes to be implemented in 2025 will deliver ongoing cost savings of around 15 million pounds per annum, with a charge of around 15 million pounds in 2025. The anticipated net impact on 2025 EBIT is around 10 million pounds.
Nicholas Kirk, Chief Executive Officer, PageGroup, said, 'Against the ongoing challenging trading conditions, we have taken robust action to optimise the cost base by simplifying our management structure, reducing our leadership team and improving the efficiency of our business support functions - these actions will benefit the Group from 2026 onwards.... Overall, our focus remains to balance near-term productivity with ensuring we remain well placed to take advantage of opportunities when market conditions improve.'
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