International specialist recruitment firm PageGroup announced its half-year results for the period ended 30 June 2019. Revenue increased by 9.5% in constant currency (CC) to £820.5 million.

Gross Profit by segment and geography

All growth reported below is in constant currency.

EMEA

EMEA is the group’s largest region, contributing 49% of group first half gross profit. Revenue in the region increased by 10.6% to £427.7 million

Michael Page and Page Personnel grew gross profit by 9% and 11%, respectively. France, which now represents around a third of the region and 16% of the Group, grew gross profit by 7%. Germany grew 24%. Southern Europe grew 9%, with Italy up 12% and Spain up 6%, however conditions became more challenging as the second quarter drew to a close. Benelux grew 12%, with Belgium and the Netherlands up 13% and 12% respectively. The Middle East and Africa grew 7%, driven mainly by growth in the UAE of 11%.

APAC

In Asia Pacific, representing 19% of group first half gross profit, revenue increased 6.7% to £135.0 million.

The group said conditions in Asia Pacific in the first half were challenging due to the trade tariff uncertainty in Greater China, which overall grew gross profit 3%. South East Asia grew 9%, however, the company said it saw more challenging conditions in Singapore during the second quarter, impacted by the effects from trade tariff uncertainty. India and Japan grew gross profit 50% and 22%, respectively. Australia gross profit up 8%, driven by the Page Personnel business.

UK

In the UK, representing 16% of group first half gross profit, revenue increased 1.5% to £157.4 million.

The company said Brexit related uncertainty continued to impact decision-making from clients and candidates at the more senior levels of the market. Page Personnel, which has a higher proportion of temporary recruitment, grew 9%, while Michael Page, which is focused on more senior candidates, declined 3%.

Americas

In the Americas, representing 16% of group first half gross profit, revenue increased 23.4% to 100.5 million. North America grew gross profit 20% overall, with growth of 23% in the US offset by an 8% decline in Canada. Latin America grew gross profit 19%.

Kelvin Stagg, Chief Financial Officer, commented, ““Fee earner headcount fell by 81 (-1.3%) in the first half, to 6,035, mainly in markets where conditions were more challenging, such as Greater China and the UK.”

“We continued to invest in markets where we saw the greatest growth, such as the US and India,” Stagg said. “We completed the implementation of our new Global Finance System, with roll-outs in Latin America and Europe during the first half. Our operational support staff headcount increased by 72 (4.3%), the majority of which were temporary, to support these roll-outs.”

“We are pleased with our first half performance, however we remain mindful of challenging macro-economic conditions seen in a number of our regions. 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 £200 million to £250 million of operating profit,” Stagg said.

As of last trade Pagegroup traded at £452.20, up 2.73% on the day and 9.68% above its 52-week low of £412.30, set on 12 July 2019. Based on its current share price the company has a market value of £1.45 billion.