International specialist recruitment firm PageGroup (MPI: LSE) reported a record group gross profit for the third quarter ending 30 September 2018 of £207.7 million, an increase of 19.7% in constant currency when compared to last year.

Gross profit for the third quarter by region and recruitment type was broken down as follows.

Gross profit by discipline was as follows for the third quarter.

PageGroup reported that adverse foreign exchange movements decreased its reported gross profit by 2.5%.

In EMEA, both Michael Page and Page Personnel reported growth of 21% and 20%, respectively. Following an investment in fee earner headcount of 98 (+16%) over the last year, France, representing 15% of the group, grew 21%. Germany grew 34%, a seventh consecutive record quarter, with the group’s interim business growing by over 50%. Benelux grew 20% and Southern Europe grew 13%, with Italy up 18% and Spain up 8%, despite continued challenges in Catalonia. The Middle East and Africa grew 19% with particularly strong growth in the UAE.

“Given these continued favourable trading conditions, we invested further in our fee earner headcount, up 108 in the quarter,” the group stated.

In Asia Pacific, the group’s second largest region, five countries reported record quarters. Greater China grew 31%, a second consecutive record quarter, up from 18% in Q2, with both Hong Kong and Mainland China performing at similar levels. Southeast Asia grew 24%, with continued strong growth in Singapore, up 35%.

Japan reported growth of 38%, a record quarter. India delivered its second consecutive record quarter, up 68%, more than double its Q2 growth rate. In Australia, growth continued to accelerate, up from 10% in Q2 to 17% in Q3, following the group’s strategic investment in fee earners in 2017 and the opening of its Canberra office last year.

The UK saw marginal growth of 0.8% in the quarter, despite Brexit and political uncertainty continuing to impact confidence. Page Personnel, which represents 26% of UK gross profit, achieved a record quarter, growing 17%. Michael Page, which is more senior candidate focused and, therefore, more impacted by uncertainty, declined by 4%.

The Americas reported growth of 30.1% to £31.9 million. North America grew 27%, with the US 26% and Canada 35%, both achieving record quarters.

“In the US, our strategy of diversification continued, with strong performances from our regional offices, in particular Boston, Houston and Los Angeles, as well as disciplines outside of Financial Services,” the group stated.

Meanwhile Latin America grew 34%. The Brazilian market continued to recover, growing 20%, broadly in line with its Q2 growth rate. In Mexico the group reported growth of 50%. Argentina, Chile, Colombia and Peru grew 34%, collectively.

Steve Ingham, Chief Executive Officer, commented, “The group delivered gross profit growth of 19.7% in constant currencies, its highest quarterly growth rate since Q3 2011, with 22 countries growing over 20% and all of our four regions delivering growth.”

"Demonstrating our continued confidence in many of our markets, the group added 242 fee earners in the quarter and now has a record total headcount of 7,718,” Ingham said. “This investment has been mainly into our large, high Potential markets.”

"We will continue to focus on driving profitable growth as we progress towards our Vision of 10,000 headcount, £1 billion of gross profit and £200 million to £250 million of operating profit,” Ingham said.

Looking ahead, Ingham said, “We are pleased with the group's continued strong performance and now expect 2018 operating profit to be marginally ahead of the consensus of current market forecasts (£138.7 million)."

As of last trade Pagegroup traded at £557.00, up 2.20% on the day and 9.31% below its 52-week high of £614.18, set on 30 Aug 2018. Based on its current share price the company has a market value of £1.79 billion.