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View All NewsUK – PageGroup full-year revenue up 14%; Brexit uncertainty has impact
PageGroup plc (PAGE:LSE) reported revenue rose 14.0% in constant currency in 2018 with its Asia region posting the fastest growth. Revenue in its UK operations edged up 0.2%. The Surrey, UK-headquartered recruitment company noted that challenging market conditions related to Brexit uncertainty impacted candidate and client confidence.
The company noted gross profit was at its highest level on record in 2018.
| (£ thousands) | FY 2018 | FY 2017 | % change | % change constant currency |
| Revenue | £1,549,941 | £1,371,534 | 13.0% | 14.0% |
| Gross profit | £814,902 | £711,568 | 14.5% | 15.9% |
| Gross margin | 52.6% | 51.9% | ||
| Profit for the year | £103,703 | £83,080 | 24.8% |
Europe, the Middle East and Africa is the group’s largest region, and PageGroup reported strong market conditions in the region. Gross profit in the region rose 17.9% on a constant currency basis in 2018 to £394.3 million. Nearly half of the gross profit in the region was generated in France and Germany.
Asia Pacific gross profit rose 20.6% in constant currency to £161.2 million. PageGroup noted strong growth in Greater China and improved market conditions in Hong Kong. However, Mainland China saw more challenging trading conditions in the fourth quarter driven by tariff uncertainty.
UK gross profit fell 1.7% to £138.4 million in 2018.
PageGroup has eight offices in the US, and North America represented 58% of gross profit in 2018. Full-year gross profit rose 27.2% in constant currency to £121.0 million (US$153.6 million).
Switching from gross profit to revenue, PageGroup reported revenue rose across its geographies.
Revenue by geography
| (£ thousands) | FY 2018 | FY 2017 | % change |
| EMEA | £797,427 | £675,983 | 18.0% |
| United Kingdom | £313,525 | £312,915 | 0.2% |
| Australia and New Zealand | £112,930 | £110,602 | 2.1% |
| Asia | £153,794 | £125,688 | 22.4% |
| Americas | £172,265 | £146,346 | 17.7% |
Quote
“We are mindful of the macro-economic uncertainties that exist, but we will continue to focus on driving profitable growth, while continuing our strategic investments towards our vision of 10,000 headcount, £1bn of gross profit and £200m - £250m of operating profit,” CEO Steve Ingham said.
Share price and market cap
Shares in PageGroup closed down 0.8% in London on Wednesday to £445.40; the company’s market cap was £1.47 billion, according to FT.com.