PageGroup gross profit up but UK still struggling
FTSE 250 recruiter PageGroup posted a rise in fourth-quarter gross profit and said it expects operating profit for 2016 to be towards the top end of the range of market forecasts.
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Group gross profit was up 3.8% to £163.4m, marking a record quarter for the group, although gross profit in the UK was down 6.7% to £33.8m, as client and candidate confidence levels deteriorated and activity levels dwindled.
The Michael Page business was impacted the most by the economic uncertainty, down 8%, while Page Personnel was more resilient, down 1%.
EMEA saw the strongest growth, with profit up 12.4% at constant currency to £76m in the fourth quarter.
For full-year 2016, group gross profit was a record £621.1m, up 3% at constant currency and 11.7% on a reported basis, with a £48.3m benefit from foreign exchange.
Chief executive officer Steve Ingham said: “There are a number of uncertainties as we enter 2017, including: in the UK as we initiate Brexit; in the US as new economic policies are announced; in Europe as several countries face elections; and also in China and Brazil.
“However, we will continue to focus on driving profitable growth, while being able to respond quickly to any changes in market conditions, as we did throughout 2016.”
At 0910 GMT, the shares were up 3.3% to 406p.