International specialist recruitment firm PageGroup (MPI: LSE) provided a trading update for the fourth quarter reporting a group gross profit of £182.4 million, an increase of 13.8% in constant currency (CC) compared with last year.

The EMEA region led growth in gross profit with an increase of 19.3% (CC) for the fourth quarter, year-on-year.

Gross Profit from permanent recruitment grew by 13.6%(CC), while gross profit in temporary recruitment increased by 14.4% (CC), year-on-year.

PageGroup stated that foreign exchange impacted the group negatively in the quarter, reducing reported gross profit by 2.1% or £3.4 million as well as reducing operating profit, which the group stated was mainly due to currency movements in Asia Pacific and the Americas.

Gross Profit broken down by geographical region was as follows.

In EMEA, which made up 50% of gross profit geographically in the fourth quarter, gross profit growth reached a record quarter. Both Michael Page and Page Personnel showed growth of 20% and 19%, respectively (CC). France, representing 17% of the Group, showed the highest growth, followed by Germany.

In the APAC region, which made up 18% of group gross profit, Asia showed growth of 21% (CC), with Greater China up 15% (CC). The group also reported strong growth in South East Asia, Japan and Australia.

In the UK, gross profit was down 2.8%. PageGroup stated that the macro environment continued to impact confidence, “particularly among some of our multinational clients and more senior permanent candidates.” Both temporary and permanent recruitment were affected equally. Page Personnel, which represented 23% of the UK market, declined 2% compared to a 3% decline in Michael Page. Within the disciplines, Financial Services, 5% of the UK, grew 4% (CC). The Private Sector (87% of the UK) was down 2% (CC) and the Public Sector (13% of the UK) declined by 10% (CC).

In the Americas region, North America grew 19% (CC), with the US up 21% (CC). Latin America grew 19% (CC), with Brazil, which represented a third of Latin America, returning to growth, up 14% (CC). All countries in Latin America delivered double digit growth, with record performances from Argentina, Mexico and Peru.

"In the quarter, Continental Europe, Asia and the Americas delivered strong performances and we saw improvements and a return to growth in Australia, Brazil and Singapore,” Steve Ingham, Chief Executive Officer, said. “However, the UK continued to experience challenging market conditions, with the macro environment impacting some clients and senior candidates.”

"Looking forward, we remain cautious in several markets as we enter 2018: primarily in the UK, where we will continue to focus on protecting margins whilst investing in structural opportunities; in Australia, where we have invested in headcount and a new office in Canberra; and in Brazil, which remains challenging, despite a stronger performance in the fourth quarter,” Ingham said.

“However, we will continue to invest in our large high potential markets (Greater China, Germany, Latin America, South East Asia and the US), as well as in markets with favourable trading conditions, both existing and new markets, such as India and the Nikkei market in Japan. We will, as always, continue to focus on driving profitable growth while being able to respond quickly to changes in market conditions,” Ingham said.

As of last trade Pagegroup traded at £507.50, up 7.80% on the day and 3.88% below its 52-week high of £527.97, set on 10 October 2017. Based on its current share price the company has a market value of £1.54 billion.