International recruitment firm PageGroup (MPI: LSE) reported gross profit of £139.2 million for the third quarter ending 30 September 2015, an increase of 10.2% in constant currency (CC) compared with £132.9 million a year ago. 

Gross profit from the company’s permanent recruitment business, which accounted for 76% of total gross profit, rose by 9.8% in constant currency, while temporary staffing gross profit was up by 11.3% (CC) compared with a year ago. 

Steve Ingham, CEO of PageGroup, commented: “The Group delivered a fifth consecutive quarter of double-digit growth, up 10.2% in constant currencies. Foreign exchange volatility has been a feature all year and it continued to impact our results, reducing third quarter growth to 4.8% in reported rates.” 

"Market and trading conditions across and within our regions were mixed. EMEA recorded its best quarter for almost four years, with particularly strong performances from France, Germany and Southern Europe. The UK delivered another quarter of solid growth. Greater China improved sequentially, despite ongoing economic concerns for the region, and the United States continues to grow strongly and now represents the Group's fourth largest country by gross profit. Elsewhere, trading conditions in Brazil continued to deteriorate and Australia remained challenging,” he added.  

By geography, the company reported gross profit as follows:

EMEA, PageGroup’s largest region, reported constant currency gross profit growth of 13.2% in Q3 2015, the region’s strongest quarterly growth rate since Q4 2011. These were notable performances from France (+12%), the Netherlands (+25%), and impressive growth of +48% in Spain, which now represents 10% of total EMEA gross profit. Page Personnel again grew strongly, up 16% driven by growth of more than 30% in Southern Europe, Germany, and Belgium. The Middle East and Africa experienced a tough quarter due to the macro economic environment.

The UK achieved gross profit growth of 12.5% in the third quarter, with Page Personnel continuing to perform well (up 22%) and Michael Page delivering growth of 10% compared with last year. Within the disciplines, there were notably positive results for Property & Construction, Legal and HR. Page Group’s Retail business, however, faced difficult market conditions. The mix of gross profit and growth rates for the Private Sector (87%) and Public Sector (13%) remained in line with the first half with growth rates of 12% and 15%, respectively.

Good growth was achieved across all regions with London the standout performer across both Michael Page and Page Personnel. Michael Page produced its strongest results in the Midlands and Page Personnel likewise in the North.

Asia Pacific grew gross profit by 5.3% in constant currencies during the quarter; however, the impact of foreign exchange, particularly the Australian Dollar and Japanese Yen, reduced growth to 1% in reported rates. Asia grew gross profit by 9%, buoyed by 12% growth in Greater China. Japan delivered a record quarter with growth of 21%. Australasia experienced another challenging quarter, down 2% compared with Q3 2014.

In Australia, Page Personnel delivered gross profit growth of 15%, but this was offset by continued difficult macro-economic conditions, which impacted the Michael Page businesses.

In the Americas gross profit grew by 5.5% in constant currency. Foreign exchange movements, however, resulted in a gross profit decrease of 2.4% in reported currency compared with last year. North America reported growth of 18% in constant currency, driven by a particularly good performance from the New York office. In Latin America, gross profit reduced by 5% in constant currency, impacted by a number of weakening currencies; particularly in Brazil, Mexico, and Colombia. Trading continued to show a divergent picture across Latin America, with a 30% reduction in gross profit in Brazil, offset by collective growth of 31% elsewhere. 

PageGroup reports gross profit across four primary business segments: Finance & Accounting (Fin & Acc); Legal, Technology, HR, Secretarial, and Healthcare (Legal & Tech), Engineering, Property & Construction, Procurement, and Supply Chain (EPPS), and Marketing, Sales, and Retail (MSR). 

Gross profit by business segment during Q3 2015 was broken down as follows:

"We are pleased with our performance in the third quarter and, despite the short visibility and challenging conditions in a number of our markets, the Group's outlook remains positive for the rest of the year. Cash generation in the period was particularly strong with net cash of circa £130 million at the quarter end, before payment of interim and special dividends of £61.3 million on 2 October. Save for any further movements in foreign exchange, the Board's expectation for the full year remains unchanged," Mr Ingham concluded.

In trading today, the company’s share price rose by 2.5% to £4.76, an increase of 20.7% compared with a year ago. Based on its current share price, the company has a market value of £1.5 billion.