PageGroup PLC on Wednesday said the outlook for financial 2025 is uncertain due to an increasingly unpredictable economic environment.
‘Given the recent introduction of tariffs and the resultant market uncertainty, we are not providing forward-looking guidance on business performance,’ Chief Executive Nicholas Kirk said in a statement.
In response, shares in PageGroup fell 2.0% at 251.60 pence each in London on Wednesday morning. They had earlier hit a 52-week low of 245.80p.
The Weybridge, Surrey-based recruitment company said the slower end to 2024 had continued into the first quarter of 2025, although most markets were sequentially stable.
Group gross profit fell 12% to £194.2 million in the first quarter from £220.0 million a year prior, or by 9.2% at constant currency.
In Europe, Middle East & Asia, which represents more than half of group turnover, gross profit fell 15%. In Asia Pacific and in the UK & Ireland gross profit declined 13%, while in the Americas sales fell just 1.1%.
Permanent fees, around 72% of sales, declined by 12% and temporary fees fell 10%.
CEO Kirk said despite the decline in gross profit, activity levels remained ‘robust’.
But the conversion of interviews to accepted offers remains ‘the most significant challenge, as ongoing macro-economic uncertainty continued to impact confidence, which extended time-to-hire.’
Against the ‘challenging’ backdrop, PageGroup announced ‘robust action’ to reduce costs.
The changes, to be implemented in 2025, will deliver ongoing cost savings of around £15 million per annum, with a charge of £15 million in 2025.
PageGroup plans to simplify its management structure, reducing its leadership team and improve the efficiency of business support functions.
The anticipated net impact on 2025 earnings before interest and tax is forecast around £10 million, the firm said.
In the first quarter, fee earner headcount fell 1.4%.
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