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View All NewsUK – PageGroup Q4 gross profit falls 0.4% in constant currency
PageGroup plc (PAGE:LSE) reported today fourth-quarter gross profit fell 0.4% year over year on a constant currency basis. However, the UK-based staffing provider noted gross profit rose on a constant currency basis in the Americas as well as its Europe, the Middle East and Africa segment.
North America gross profit rose by 5% in constant currency during the fourth quarter with the US rising 10%. The company reported strong growth in Boston, Chicago and Los Angeles.
Gross profit
| (£ millions) | Q4 2020 | Q4 2019 | % change | % change constant currency | Q4 2020 (US$ thousands) |
| EMEA | £103.6 | £104.5 | -0.8% | 2.3% | $135.9 |
| Asia Pacific | £37.5 | £41.1 | -8.8% | -7.9% | $49.2 |
| Americas | £32.6 | £31.9 | 2.2% | 5.0% | $42.8 |
| UK | £31.9 | £33.5 | -4.8% | -4.8% | $41.8 |
| Total | £205.6 | £211.0 | -2.6% | -0.4% | $269.7 |
| Permanent | £151.3 | £159.1 | -4.9% | -3.0% | $198.4 |
| Temporary | £54.3 | £51.9 | 4.6% | 7.5% | $71.2 |
CEO Steve Ingham said macroeconomic and political uncertainty affected PageGroup’s gross profit in the quarter.
“The group delivered strong performances in Germany, India and the US, despite a slowing financial services market in New York,” Ingham said. “However, trading conditions were more challenging in many of our larger markets, including Greater China, the UK and France.”
Gross profit in Greater China fell 14% in constant currency; in the UK, gross profit fell 4.8%; and in France, it rose 1%.
On the other hand, fourth-quarter gross profit rose 16% in Germany and India gross profit rose 13%.
Ingham said tough trading conditions felt in the fourth quarter across the majority of regions served by PageGroup are expected to continue. The challenges include social unrest in France, trade tariff uncertainty in Mainland China, protests in Hong Kong and fires in Australia. The weak financial services market in New York, social unrest in Chile and Brexit-related uncertainty are also expected to continue.
Revenue by geography
| (£ thousands) | H1 2019 | H1 2018 | % change | H1 2019 (US$ thousands) |
| EMEA | £427,657 | £389,685 | 9.7% | $560,915 |
| United Kingdom | £157,413 | £155,027 | 1.5% | $206,463 |
| Australia and New Zealand | £54,930 | £55,273 | -0.6% | $72,046 |
| Asia | £80,059 | £70,336 | 13.8% | $105,005 |
| Americas | £100,456 | £81,259 | 23.6% | $131,758 |
Share price and market cap
Shares in PageGroup closed up 4.36% in London to £488.60; the company had a market cap of £1.54 billion, according to FT.com.