Daily News
View All NewsPageGroup says Q2 gross profit at record, Brexit uncertainty remains
PageGroup reported second-quarter gross profit rose 16.0% in constant currency with the fastest growth occurring in the Americas. The UK-based staffing provider also noted that it expects operating profit to be slightly ahead of market forecast. And the company said it recorded its highest gross profit ever in the second quarter despite Brexit uncertainty.
“This is the first time the group has generated more than £200 million in a quarter and is the highest quarterly growth rate for seven years,” CEO Steve Ingham said.
Second-quarter gross profit rose 27% in the US alone and 30% in Canada — both on a constant currency basis. However, UK gross profit fell 1.9% in constant currency during the second-quarter. Still, that’s an improvement from the year-over-year decline of 7.1% in the first quarter, which was affected by the timing of the Easter holiday.
Second-quarter gross profit in the company’s largest geography — Europe, the Middle East and Africa — rose by 18.6% in constant currency, and gross profit was up in the company’s second-largest geography, Asia Pacific, by 18.4% in constant currency.
PageGroup also noted foreign exchange movement decreased gross profit by £3 million during the second quarter.
Gross profit by geography
| (£ millions) | Q2 2018 | Q2 2017 | % change | % change constant currency | Q2 2018 (US$ millions) |
| EMEA | £100.0 | £83.5 | 19.8% | 18.6% | $131.5 |
| Asia Pacific | £41.3 | £35.8 | 15.3% | 18.4% | $54.3 |
| UK | £36.0 | £36.6 | -1.9% | -1.9% | $47.3 |
| Americas | £30.9 | £25.9 | 19.6% | 29.2% | $40.6 |
| Total | £208.2 | £181.8 | 14.5% | 16.0% | $273.8 |
“We are pleased with the group’s strong performance in the first half,” Ingham said. “However, there remain challenges in a number of our markets, including Brexit in the UK, trading in Catalonia and the forthcoming elections in Latin America.”
Looking at results by segment, PageGroup noted its technical segment posted the fastest growth in gross profit in the second quarter, rising by 26.4% in constant currency.
Gross profit by segment
| (£ millions) | Q2 2018 | Q2 2017 | % change | % change constant currency | Q2 2018 (US$ millions) |
| Accounting and financial services | £71.8 | £66.7 | 7.7% | 9.1% | $94.4 |
| Engineering, property & construction, procurement & supply chain | £50.0 | £39.9 | 25.2% | 26.4% | $65.8 |
| Legal, technology, HR, secretarial, healthcare | £49.8 | £41.4 | 20.1% | 21.7% | $65.5 |
| Marketing, sales and retail | £36.6 | £33.8 | 8.4% | 10.1% | $48.1 |
| Total | £208.2 | £181.8 | 14.5% | 16.0% | $273.8 |
Shares in PageGroup closed down 1.01% to £585.50, according to Yahoo. The company had a market cap of £1.837 billion.