PageGroup says outlook 'uncertain' as macro challenges hit profits

(Sharecast News) - Recruiter PageGroup has said it is not providing financial targets for 2025 as a result of the economic uncertainty caused by an escalating trade war, with profits in the first quarter falling by almost a tenth. The company said that its slower end to the fourth quarter continued into the new financial year, with the full-year outlook now uncertain due to an "increasingly unpredictable economic environment".

Gross profits were down 9.2% year-on-year at £194.2m in the three months to 31 March, with the Americas division its only geography to record growth over last year, rising 3.3% to £37m.

In EMEA, which represents over a half of group earnings, gross profits were down 12% at £105.7m, while Asia Pacific saw a 11.1% drop to £28m and the UK fell 12.7% to £23.5m.

"Given the recent introduction of tariffs and the resultant market uncertainty, we are not providing forward-looking guidance on business performance," said chief executive Nicholas Kirk.

Explaining the weaker first-quarter performance, Kirk said: "The conversion of interviews to accepted offers remained the most significant challenge, as ongoing macro-economic uncertainty continued to impact confidence, which extended time-to-hire."

PageGroup also said it will incur a one-off cost of £15m in 2025 as a result of restructuring actions, which included simplifying its management structure, reducing the leadership team and improving the efficiency of business support functions. However, these actions are expected to result in savings of £5m this year, rising to £15m per annum going forward.