International specialist recruitment firm PageGroup (MPI: LSE) reported a record group gross profit for the second quarter ending 30 June 2018 of £208.2 million, an increase of 16.0% in constant currency when compared to last year.

Gross profit for the second quarter by region was broken down as follows.

PageGroup reported that, during the second quarter, 20 countries reported quarterly gross profit growth of over 20%.

“This is the first time the group has generated more than £200 million in a quarter and is the highest quarterly growth rate for seven years,” Steve Ingham, Chief Executive Officer, said. “Our Large, High Potential markets grew 24% collectively, with all five delivering record quarters.”

“Adverse foreign exchange movements impacted our reported performance, decreasing gross profit by £3 million in Q2,” Ingham said.

Germany reported growth of 25%. France, 16% of the group’s gross profit, while challenged by mid-week bank holidays and the disruption of strikes, grew 15%. Both Italy and the Netherlands grew 23% and 18%, respectively. However, the political challenges in Catalonia limited PageGroup’s growth in Spain to 8%. For the EMEA region as a whole, the group achieved record growth for the quarter.

In Asia Pacific, both Greater China and South East Asia grew 18% and the group opened in Vietnam, PageGroup’s fifth country in South East Asia. In Australia, the group continued to see improvement, with growth of 10%. Five countries achieved record quarterly results.

The UK, now 17% of the group, was down 1.9% due to the continued impact from the uncertainty related to Brexit. The Page Personnel business, which represented 24% of the UK, grew by 5%. However, the Michael Page business, which is more senior-candidate focused, continued to be impacted by uncertainty, declining -4%. In response to the trading conditions, fee earner headcount fell by 16%.

Meanwhile, the US grew 27% and Latin America was up 32%, including Brazil up 23% and Mexico up 25%. The other four countries in Latin America, with headcount of over 300, grew 46% collectively. The Americas continued to be PageGroup’s fastest-growing region.

The group added that India and Japan had record performances as a result of their continued investment, growing 27% and 35% respectively. Other standout performances were Belgium, Canada and Portugal up 41%, 30% and 34%, respectively.

Gross profit broken down by recruitment type was as follows for the second quarter.

Permanent recruitment made up 77% of group gross profit while Temporary made up 23% during the quarter.

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

Ingham stated that there remain challenges in a number of the group’s markets, including Brexit in the UK, trading in Catalonia and forthcoming elections in Latin America.

“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 – £250 million of operating profit, while being able to respond quickly to any changes in market conditions,” Ingham said. “In 2018 we now expect operating profit to be slightly ahead of the consensus of current market forecasts (company compiled consensus of £134 million.).”

Pagegroup set a new 52-week high during today's trading session when it reached £600.50. Over this period, the share price is up 22.02%. As of last trade the group traded at £579.00, down 2.11% on the day. Based on its current share price the company has a market value of £1.91 billion.