Recruitment firm PageGroup has reported a dramatic decline in first-half profits as sluggish hiring activity throughout the º£½ÇÊÓƵ and Europe dampened performance, though the company maintained its annual forecasts and committed to pursuing further cost-cutting measures.
The Surrey-based FTSE 250 business witnessed operating profit plummet to £2.1m in the six months ending 30 June, down from £28.4m in the corresponding period last year, after absorbing approximately £13m in restructuring costs, as reported by .
Excluding exceptional items, underlying profit reached around £15m, while group gross profit declined 9.7 per cent to £389.7m.
The º£½ÇÊÓƵ division, accounting for 12 per cent of the group's gross profit, experienced a 13.4 per cent fall to £46.6m as both employer and jobseeker confidence remained fragile, prolonging the duration required to complete placements.
The º£½ÇÊÓƵ arm recorded a £7m operating loss, albeit marginally superior to the previous year's performance.
Projections remain unchanged despite workforce reduction
Chief executive Nicholas Kirk commented: "The Group delivered a resilient performance in H1 despite ongoing macro economic uncertainty.
"Whilst activity levels remained robust across most of our markets, we experienced a slight deterioration in activity levels and trading in Continental Europe towards the end of the period, particularly in our two largest markets, France and Germany."
He continued: "Despite the uncertain outlook due to the unpredictable economic environment, we have a highly diversified and adaptable business model, a strong balance sheet and our cost base is under continuous review."
PageGroup has been reducing its workforce, with º£½ÇÊÓƵ 'fee earners' decreasing by nearly eight per cent in the first half of the year, and is aiming for annual savings of £15m from 2026 through a streamlined management structure and efficiency initiatives. Despite a weaker performance in the first half, the board has maintained its full-year operating profit forecast roughly in line with market consensus at around £22m and declared an interim dividend of 5.36p per share, unchanged from the previous year.
Net cash dropped to £10.8m from £57.2m a year earlier, reflecting lower profitability and dividend payouts.
