Daily News
View All NewsPageGroup gross profit up 15%; foresees geopolitical uncertainty
PageGroup reported gross profit rose 15.4% in constant currency in its global staffing operations. In the US, gross profit rose 32%. However, the UK-based firm noted gross profit growth slowed in greater China due to tariff uncertainty. In Europe, the firm reported UK gross profit rose 2.1% in constant currency despite Brexit uncertainty, and French gross profit rose 10% despite the “yellow vest” protests.
| (£ millions) | Q4 2018 | Q4 2017 | % change | % change constant currency | Q4 2018 (US$ millions) |
| EMEA | £104.4 | £90.9 | 14.9% | 13.9% | $132.5 |
| Asia Pacific | £41.2 | £33.5 | 23.1% | 22.0% | $52.3 |
| UK | £33.5 | £32.8 | 2.1% | 2.1% | $42.5 |
| Americas | £32.0 | £25.2 | 27.0% | 29.2% | $40.6 |
| Total | £211.1 | £182.4 | 15.8% | 15.4% | $267.9 |
CEO Steve Ingham noted the company added 561 fee-earning internal staff in the first three quarters of the year, but the number of additions slowed to 58 in the fourth quarter.
Quote
“Whilst additions in Q4 are normally lower, we are also mindful of the heightened geopolitical and macroeconomic uncertainty, which has the potential to impact client and candidate confidence,” Ingham said.
Still, he noted the company’s five high-potential markets — Germany, Greater China, Latin America, Southeast Asia and the US — grew 25% collectively in the fourth quarter.
Fourth-quarter gross profit from permanent recruitment grew by 17.6% in constant currency to a total of £159.9 million (US$202.9 million), while gross profit in temporary recruitment increased by 9.0%, year-on-year to £51.2 million (US$65.0 million).
Gross profit by segment
| (£ millions) | Q4 2018 | Q4 2017 | % change | % change constant currency | Q4 2018 (US$ millions) |
| Accounting and financial services | £74.6 | £66.7 | 11.8% | 11.7% | $94.7 |
| Legal, technology, HR, secretarial, healthcare | £51.8 | £41.4 | 25.0% | 24.5% | $65.7 |
| Engineering, property & construction, procurement & supply chain | £50.2 | £42.4 | 18.5% | 17.5% | $63.7 |
| Marketing, sales and retail | £34.5 | £31.9 | 8.4% | 8.4% | $43.8 |
| Total | £211.1 | £182.4 | 15.8% | 15.4% | $267.9 |
PageGroup divides its segments as:
- Finance — Accounting and financial services
- Professional services — Legal, technology, HR, secretarial, healthcare
- Technical — Engineering, property & construction, procurement & supply chain
- Marketing, sales and retail
Share price and market cap
PageGroup shares fell 7.05% in London to £432.20; the company had a market cap of £1.53 billion, according to FT.com.