International specialist recruitment firm PageGroup (MPI: LSE) reported revenue for the six months ending 30 June 2016 of £575.9 million, an increase of 5.5% in constant currency compared with £530.4 million during the same period last year. 

“PageGroup delivered an increase of 3.6% in gross profit and 12.1% in operating profit in constant currencies in the first half of 2016, with the group’s conversion rate rising to 15.7% from 14.3%, reflecting an improved business performance and operational efficiencies,” Steve Ingham, Chief Executive Officer, said.

“Movements in foreign exchange rates as a result of a weaker Sterling have benefitted our first half results by c. £8 million of gross profit and c. £2 million of operating profit,” Ingham said.

The Group’s revenue mix between permanent and temporary placements was 40:60 (2015: 42:58) and for gross profit was 76:24 (2015: 78:22).

By geography, the company reported revenue growth as follows:

Gross profit, broken down geographically, was as follows:

“We saw good performances in Continental Europe and Latin America (ex-Brazil), which combined now account for around 45% of the Group. However, the challenging market conditions in several of our larger markets, including Greater China, the UK and Brazil, continued,” Ingham said.

EMEA is the group’s largest region, contributing 43% of group first half gross profit. The EMEA region experienced improving market conditions throughout the first half. Page Personnel showed growth of 13%. Its largest businesses in France and Germany, together representing 45% of the region by gross profit, grew 5% and 7% respectively.

In France, Page Personnel represents 63% of the business and had a record first half performance. Similarly, Page Personnel Germany, which represents 34% of the business, grew by 18%. Elsewhere in the region, Southern Europe was collectively up 22%, with growth in excess of 20% also achieved in Austria, Belgium, the Netherlands and Sweden. The group’s business in the Middle East & Africa was down 17%, with the Middle East impacted by continuing instability, down 28%.

In the UK, representing 25% of Group first half gross profit, revenue increased 1.6% to £166.7m (2015: £164.0m), but gross profit decreased 1.3% to £74.8m (2015: £75.7m), with uncertainty impacting clients’ decision-making in the lead up to the EU Referendum. With clients continuing to focus on hiring at the lower salary levels, Page Personnel, which represents 22% of the UK showed growth of 5%. Trading conditions were more difficult within Michael Page, which operates at higher salary levels and with over 70% permanent recruitment. As such, it declined 3% for the first half of 2016.

In reaction to the market uncertainty, the company reduced its UK staffing levels to 1,466 at the end of June from 1,516 at the end of December last year.

Asia Pacific, represents 19% of Group first half gross profit and Asia, comprising 13% of the Group and 71% of Asia Pacific, declined 4%.

Hong Kong, where the group’s clients are predominately multi-nationals, was impacted by the economic concerns and as a result was down 14% in the half. In Greater China, which was down 7% overall, the group saw a stronger performance in the domestic market, which now represents over 30% of mainland China. Elsewhere in Asia, India, Indonesia and Malaysia combined grew over 10% in constant currencies.

In Australasia, where Australia was flat, the number of placements at lower salary levels increased. As a consequence, Page Personnel outperformed Michael Page, with growth of 5%. In Michael Page, trading conditions were more difficult, particularly in Western Australia and as such growth was flat in the first half. However, Australia improved through the half, with growth of 4% in Q2.

In the Americas, representing 13% of Group first half gross profit, North America saw growth of 3%, though conditions were tougher in the second quarter, particularly within the New York Financial Services market. Canada, currently in recession and combined with the low oil price, was down 6%. Latin America was down 5%, with variable market conditions across the region. Brazil (35% of Latam) experienced another challenging half, down 28%. The group saw no improvement to trading conditions in Brazil, though it should be noted that the comparators do ease in the second half of the year. Elsewhere, the group’s other countries, which now represent 65% of gross profit in Latam, grew by 15%. Mexico, which is approaching the size of Brazil, showed growth of 15% in the second quarter.

“We are pleased with our first half performance, but remain mindful of ongoing macro-economic uncertainty in the UK and elsewhere as we start the second half of the year. However, we will continue to focus on driving profitable growth, as we did in the first half, whilst remaining able to respond quickly to any changes in market conditions,” Ingham said.

In trading today, Pagegroup PLC shares traded at £343.30, down 2.03% on the day and 119.64% above the 52 week low of £156.30 set on 24 June 2016. Based on its current share price, the company has a market value of £1.14 billion.