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View All NewsPageGroup gross profit rises 1.3% in constant currency; North America falls 11%
International specialist recruitment firm PageGroup plc reported gross profit edged up 1.3% in constant currency to £158.6 million (US$206.3 million) in its fiscal third quarter ended Sept. 30.
| (£ millions) | Q3 2016 | Q3 2015 | % change | Constant currency % | Q3 2016 (US$millions) |
| Gross profit | £158.6 | £139.1 | 14.0% | 1.3% | $206.3 |
Michael Page International plc in June changed its name to PageGroup plc.
Gross profit fell in constant currency across all regions except Europe, Middle East and Africa, where gross profit rose 10.4% in constant currency.
North America gross profit fell 11%; US gross profit also fell 11%. The company noted a challenging financial services market in New York, which was down 41%, offset 13% growth elsewhere. PageGroup continues to develop wider market presence, with good growth in Boston, Houston, Los Angeles, New Jersey and Philadelphia.
In Canada, gross profit fell 12% while Latin America, which represented 47% of the Americas, grew 10%.
Gross profit by geography
| (£ millions) | Q3 2016 | Q3 2015 | % change | Constant currency % | Q3 2016 (US$millions) |
| Europe, Middle East and Africa | £66.8 | £51.6 | 29.4% | 10.4% | $86.9 |
| United Kingdom | £37.8 | £39.7 | -4.7% | -4.7% | $49.2 |
| Asia Pacific | £32.3 | £28.3 | 14.1% | -4.7% | $42.0 |
| Americas | £21.7 | £19.5 | 11.8% | -2.0% | $28.2 |
Quote
“The Group delivered gross profit growth of 1.3% in constant currencies and 14.1% at reported rates,” said CEO Steve Ingham. “Continental Europe and Latin America, outside of Brazil, which combined represented almost half of the Group, delivered strong performances. However, in the UK, confidence levels remained fragile and below levels seen earlier in the year. Several of our other larger markets, including Greater China and Brazil also experienced challenging market conditions.”
Ingham continued, “Activity and trading remained stronger at lower salary levels and in temporary roles and this was reflected by growth of 6% in our Page Personnel business, where temporary recruitment represents over 40% of gross profit. Our Michael Page business, where temporary recruitment represents only 17%, fell by 1%. Overall, temporary recruitment grew by 2%, compared to 1% in permanent.”
Gross profit by segment
| (£ millions) | Q3 2016 | Q3 2015 | % change | Constant currency % | Q3 2016 (US$millions) |
| Finance and accounting | £61.3 | £55.6 | 10.4% | -1.3% | $79.7 |
| Legal, technology, HR, secretarial and other | £35.3 | £30.6 | 15.4% | 1.3% | $45.9 |
| Engineering, property & construction, procurement & supply chain | £32.2 | £25.8 | 24.5% | 10.3% | $41.9 |
| Marketing, sales and retail | £29.8 | £27.1 | 10.2% | -2.0% | $38.8 |
Share price and market cap
Shares in PageGroup plc closed up 5.48% to £367.90, according to londonstockexchange.com.