PageGroup today reported revenue rose 3.6% on a constant currency basis in the first six months of the year to 30 June 2023. Revenue was up 5.8% on a reported basis.

Nicholas Kirk, Chief Executive Officer, said, “The group delivered a robust H1 performance against a record first half in 2022. EMEA delivered the standout result, delivering record H1 gross profit against a particularly strong comparator across the region. However, tough market conditions continued in Asia, the UK and the US. Overall, group gross profit declined 4.4% in constant currencies against H1 2022.”

The company added that its outlook remains unchanged. Full year operating profit is expected to be in line with previous guidance.

Gross profit by segment

Gross profit by geography

All growth rates given below are in constant currency and against H1 2021 unless otherwise stated.

EMEA is the group’s largest region, contributing 55% of group first half gross profit. The region was the strongest performing in H1 2023, delivering record gross profit against a tough comparator.

Against 2022, gross profit in Michael Page grew 3%, while the more temporary focused Page Personnel business was up 6%. France, 14% of group gross profit and around a quarter of the region, delivered record gross profit against a very tough comparator, up 2% on 2022. Germany, the group’s second largest market, also delivered a record first half, up 9%.

Southern Europe grew 3%, with Italy down 1% and Spain up 1%. Benelux was up 4% for the first half, with the Netherlands down 1% while Belgium grew 15%.

EMEA revenue rose by 6.9% on a constant currency basis.

Gross profit in Greater China declined 37%. In Mainland China, gross profit was down 42% on 2022, due to the slower than anticipated recovery following the lifting of Covid-19 restrictions during H1. Hong Kong declined 28%. South East Asia declined 18%, with Singapore down 22%, whilst the other five countries in the region declined 17%, collectively. India grew 3% and delivered a record H1, against a very strong comparator. Overall, for the first half, Japan declined 3% and Australia declined 2%.

Revenue across Asia Pacific decreased by 4.7% on a constant currency basis.

North America declined against 2022, a record comparator, with the US down 16%. Conditions remained tough throughout the first half, as uncertainty around market conditions impacted candidate and client confidence, and the group experienced a higher level of candidate buybacks.

Latin America delivered growth of 4%. Mexico, the largest country in the region, declined 6% and Brazil declined 11%. Elsewhere in Latin America, the five other countries grew 24%, collectively, with Argentina, Colombia and Panama all delivering record first halves. Overall Americas revenue grew by 8.3%

In the UK, gross profit in the Michael Page business was down 17% in the first half. Page Personnel, which operates at lower salary levels with a higher degree of temporary recruitment, was down 5%. Revenue decreased 3.2% on a reported basis.

Kirk said, “The challenging conditions we saw towards the end of 2022 continued into H1 2023, with lower levels of both candidate and client confidence resulting in delays in decision making and candidates being more reluctant to accept offers.”

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

“We have a highly diversified and adaptable business model, a strong balance sheet, and our cost base is under continuous review and can be adjusted rapidly to match market conditions. Given these fundamental strengths, we believe we will continue to perform well despite the uncertainty. At this stage of the year, the board expects 2023 operating profit to be in line with our previous guidance,” Kirk added.

PageGroup shares last traded at £449.40, down 0.58% on the day and 10.39% below its 52-week high of £501.50, set on 28 November 2022. The company has a market cap of £1.49 billion.