International specialist recruitment firm PageGroup (MPI: LSE) reported revenue for the full year ending 31 December 2016 of £1,196.1 million, an increase of 3.6% in constant currency (CC) compared with £1,064.9 million during the same period last year.

Commenting on the results and the outlook, Steve Ingham, Chief Executive Officer of PageGroup, said:

"PageGroup delivered an increase of 3.0% in gross profit and 1.4% in operating profit in constant currencies in 2016. The Group's conversion rate increased slightly to 16.3% from 16.2%, due to improved business performance and operational efficiencies offsetting the challenging economic conditions encountered in some of our larger markets.

“In 2016, foreign exchange impacted our results positively, with gross profit benefiting by £48 million and operating profit by £10 million. We completed the roll-out of our new operating system, PRS, and also the European finance transition into our Shared Service Centre in Barcelona, both of which will improve future productivity and efficiency.”

The group's revenue and gross profit mix between permanent and temporary placements was in line with the prior year at 40:60 and 76:24, respectively.

By geography, the company reported gross profit declines in all regions other than EMEA:

Europe Middle East and Asia is the group's largest region, contributing 44% of the group's gross profit in the year with 12 countries delivering record gross profit for the year. In constant currency, revenue increased 13.6% on 2015 and gross profit increased by 11.5%. Gross profit grew by 6% in France, 9% in Germany, 25% in Southern Europe and 25% in Benelux.

The UK represented 24% of the group's gross profit in 2016 and is the group's largest single market, operating from 27 offices covering all major cities. Reported revenue was down 3.9% to £325 million, compared to £338 million last year while gross profit was £146.3 million, down 3.5%, reflecting continued economic uncertainty.

Asia Pacific represented 19% of the Group's gross profit in 2016, with 71% of the region being Asia and 29% Australasia. In Asia Pacific, in constant currency, revenue decreased 3.0%

The Americas represented 13% of the group's gross profit in 2016, being North America (56% of the region) and Latin America (44% of the region). In constant currency, revenue decreased 0.2% while gross profit declined by 0.9%. In North America, group gross profit decreased by 4% in constant currency. In Latin America, gross profit was up 2% year-on-year in constant currencies. 

"Our businesses in Continental Europe, Australasia and Latin America, excluding Brazil, all performed well. In the UK, client and candidate confidence levels were impacted by the EU Referendum result, with activity levels reduced. Market conditions were also challenging in several of our other larger markets, particularly Brazil and Financial Services, notably in New York.

"Despite the challenges in a number of our larger markets, such as the UK, Brazil and China, the unpredictable nature of the current cycle and our limited visibility, we will continue to focus on driving profitable growth, whilst remaining able to respond quickly to any changes in market conditions. We will update the market on our 2017 performance in 4 weeks' time on the 12^th April."

However, Mr Ingham told Reuters this morning that he expected earnings to fall this year due to a slowdown in domestic hiring market as the UK prepares to leave the European Union.

In trading today, PageGroup traded at £427.50, up 1.74% on the day and 3.76% below its 52-week high of £444.20, set on 30 January 2017.