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PageGroup PLC on Tuesday warned that full-year operating profit would be below previous guidance, reflecting soft trading in the second quarter. The Weybridge, Surrey-based international recruiter now expects full year 2024 operating profit to be in the region of £60 million. In April, PageGroup lowered its forecast to £90 million from £101 million previously. In response, shares in PageGroup fell 10% to 380.60 pence each in London on Tuesday morning. Shares in industry peer Hays, which is due to release full-year results on Thursday, fell 4.7% to 90.19 pence. Chief Executive Nicholas Kirk said: ‘We continued to see challenging market conditions throughout the group in [the second quarter] and we experienced a softening in activity levels through the quarter, particularly in terms of new jobs registered and number of interviews.’ Gross profit in the second quarter fell 15% to £224.3 million from £263.5 million a year prior. Trading softened during the quarter, with June gross profit declining 18%. Gross profit fell 17% in the UK, by 9% in Germany, by 14% in France and by 19% in the US. Forward activity key performance indicators such as new jobs registered and number of interviews softened during the quarter and candidate and client confidence remained low, PageGroup said. Given the weaker than expected trading in June, recent increased geopolitical and macro-economic uncertainty and consequently a more cautious view for the second half, the board now expects full year 2024 operating profit to be in the region of £60 million. Kirk said the conversion of interviews to accepted offers is the most ‘significant area of challenge’, with permanent recruitment more impacted more than temporary. But he said the firm would broadly maintain the number of fee earners to ensure PageGroup is well placed for an upturn in sentiment and confidence. ‘We believe we will continue to perform well despite the challenging environment, and we are confident in our ability to implement our strategy driving the long-term profitability of the group,’ Kirk added. Copyright 2024 Alliance News Ltd. All Rights reserved.
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