PageGroup plc, a UK-based staffing provider with global operations, reported fourth-quarter gross profit rose 3.5% on a constant currency basis to £266.4 million (US$170.3 million). For the full year 2022, group gross profit grew by 20.1% in constant currency when compared to 2021 to a total of £1.07 billion (US$1.30 billion).

2022 was a record year for PageGroup, but business conditions slowed in the fourth quarter, CEO Nicholas Kirk said.

“As the quarter progressed, conditions became increasingly challenging and we saw a reduction in both candidate and client confidence, leading to further delays in decision making as well as candidates being more reluctant to accept offers,” Kirk said.

In the US, PageGroup fourth-quarter gross profit grew 2% year over year on a constant currency basis, compared to 14% in the third quarter. Conditions became more challenging, as the quarter progressed, with uncertainty around market conditions affecting both candidate and client confidence. Construction, the largest discipline in the US, saw a slowing in residential builds alongside reduced funding for commercial projects.

In Latin America, PageGroup gross profit grew 13% in constant currency, despite political and macro-economic uncertainty across the region, particularly in Brazil. The largest country in the region, Mexico, was up 1% year over year in constant currency compared to 18% in the third quarter, with increased delays in decision making, PageGroup reported. Brazil was up 2% in constant currency, and the remaining countries in Latin America grew 33%, collectively.

In the fourth quarter of 2022, Europe, the Middle East and Africa led gross profit growth on a constant currency basis; it was up 11.8%. On the other hand, Asia Pacific gross profit fell by 15.8% in constant currency, while UK gross profit dipped 1.9%.

“Looking forward, there remains a high level of global macro-economic and political uncertainty in the majority of our markets,” Kirk said. “However, against this backdrop, we continue to see candidate shortages and good levels of vacancies.”

PageGroup now expects operating profit to be around £195 million (US$235.1 million) for full-year 2022, down from £204 million from the previous full-year forecast.

Share price and market cap

Shares in PageGroup closed up 1.14% to £444.40 (US$540.34) today in London; shares were 24.55% above their 52-week low, according to FT.com. The company had a market cap of £1.44 billion (US$1.75 billion).