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View All NewsPageGroup gross profit rises 3.8% in constant currency
International specialist recruitment firm PageGroup plc reported gross profit rose 3.8% in constant currency to £163.4 million (US$201.0 million) in its the fourth quarter.
For the full year, gross profit rose 3.0% in constant currency to £621.1 million.
| (£ millions) | Q4 2016 | Q4 2015 | % change | Constant currency % | Q4 2016 (US$millions) |
| Gross profit | £163.4 | £135.8 | 20.3% | 3.8% | $201.0 |
Michael Page International plc in June changed its name to PageGroup plc.
Gross profit fell in constant currency across all regions except Europe, Middle East and Africa, where gross profit rose 11.5% in constant currency. Americas revenue edged down only 0.8%.
Gross profit in North America — which comprised 7% of the PageGroup — fell 8% in constant currency, impacted by continued tough trading conditions in the New York financial services market. PageGroup continued to diversify its business in the US, with growth outside the NYFS market of 5% and strong performances from Boston, Los Angeles and Philadelphia.
Gross profit by geography
| (£ millions) | Q4 2016 | Q4 2015 | % change | Constant currency % | Q4 2016 (US$millions) |
| Europe, Middle East and Africa | £76.0 | £56.0 | 35.7% | 12.4% | $93.5 |
| United Kingdom | £33.8 | £36.2 | -6.7% | -6.7% | $41.6 |
| Asia Pacific | £30.9 | £24.8 | 24.6% | 1.7% | $38.0 |
| Americas | £22.7 | £18.8 | 20.7% | 0.9% | $27.9 |
Quote
“Continental Europe and Latin America, outside Brazil, continued to deliver strong performances, combined up 14%; these two regions represent almost half of the Group,” said CEO Steve Ingham. “There was a return to growth in Greater China, up 4%, and Australasia grew 8%, doubling its Q3 growth rate. In the UK, client and candidate confidence levels deteriorated further, with activity levels also reduced. Challenging market conditions also continued in several of our other larger markets, particularly Brazil and Financial Services, notably in New York.”
Ingham continued, “There are a number of uncertainties as we enter 2017, including: in the UK as we initiate Brexit; in the US as new economic policies are announced; in Europe as several countries face elections; and also in China and Brazil. However, we will continue to focus on driving profitable growth, while being able to respond quickly to any changes in market conditions, as we did throughout 2016.”
Gross profit by segment
| (£ millions) | Q4 2016 | Q4 2015 | % change | Constant currency % | Q4 2016 (US$millions) |
| Accounting and financial | £62.4 | £53.3 | 17.1% | 1.6% | $76.8 |
| Legal, technology, HR, secretarial and other | £36.6 | £30.8 | 18.9% | 1.6% | $45.0 |
| Engineering, property & construction, procurement & supply chain | £34.1 | £25.8 | 31.9% | 13.8% | $41.9 |
| Marketing, sales and retail | £30.3 | £25.9 | 16.9% | 0.8% | $37.3 |
Share price and market cap
Shares in PageGroup plc closed up 7.30% to £421.70, according to londonstockexchange.com.