International specialist recruitment firm PageGroup (MPI: LSE) provided a trading update for the fourth quarter reporting a group gross profit of £211.1 million, an increase of 15.4% in constant currency (CC) compared with last year.

Growth during the fourth quarter was led by the Americas with an increase of 27.3% (CC) for the fourth quarter, year-on-year, and Asia Pacific with growth of 20.7% (CC). The group reported marginal growth in the UK of 2.1% (CC) which was impacted by Brexit uncertainty.

Gross Profit from permanent recruitment grew by 17.6%(CC), while gross profit in temporary recruitment increased by 9.0% (CC), year-on-year.

Gross Profit broken down by geographical region was as follows.

In the EMEA region, which made up 49% of gross profit geographically in the fourth quarter, gross profit grew 13.9% (CC), against a tough comparator in Q4 2017, to £104.4 million. Both Michael Page and Page Personnel showed growth of 20% and 19%, respectively (CC). France, representing 17% of the group, grew by 10% (CC) despite a tough comparator. This was a record quarter, despite the impact caused by the disruption from the ‘gilet jaunes’ (yellow vests) protests. Meanwhile, Germany grew 28% (CC), with its Interim business growing 44%. Growth was also reported in Italy, Spain, Benelux, the Netherlands, the Middle East and Africa.

In Asia Pacific, the second largest region, gross profit grew 22.0% to £41.2 million. Greater China grew 12% (CC), below its Q3 growth rate of 31% (CC), due to confidence in Mainland China being affected by trade tariff uncertainty. Hong Kong, Southeast Asia, Japan, and Australia also reported growth.

The UK grew 2.1% (CC), its second consecutive quarter of marginal growth, despite continued Brexit uncertainty impacting candidate and client confidence. Page Personnel, which represents a quarter of the UK, grew 12% (CC). Michael Page, which is focused on more senior opportunities and was impacted by the uncertainty to a greater extent, declined -1% (CC).

The Americas continues to be the fastest growing region and grew 29.2% (CC) to £32.0 million. North America grew 30% (CC), with the US up 32% (CC) and Canada up 20% (CC).  Latin America reported growth of 28% (CC).

Gross Profit by discipline was as follows.

PageGroup also published full-year results with group gross profit up 15.9% in constant currency (14.5% in reported rates) to £815.0 million, a record year. For the full year, foreign exchange decreased reported gross profit by £10 million and operating profit by £2 million.

Steve Ingham, Chief Executive Officer, commented, “We will continue to focus on driving profitable growth, while continuing our strategic investments towards our Vision of 10,000 headcount, £1 billion of gross profit and £200 million – £250 million of operating profit. Our flexible and diversified business model ensures that we are able to respond quickly to changes in market conditions. We are pleased with the Group’s performance and expect 2018 operating profit to be in line with consensus (£141.8 million).

PageGroup set a new 52-week low during today's trading session when it reached £432.80. Over this period, the share price is down -19.67%. As of last trade, shares were down 5.08% on the day. Based on its current share price the company has a market value of £1.53 billion.