PageGroup, a UK-based staffing firm that operates globally, today reported revenue rose 3.6% on a constant currency basis in the first six months of its fiscal year ending June 30. Revenue increased 5.8% on a reported basis.
“The group delivered a robust H1 performance against a record first half in 2022,” CEO Nicholas Kirk said in a statement. “EMEA delivered the standout result, delivering record H1 gross profit against a particularly strong comparator across the region. However, tough market conditions continued in Asia, the UK and the US. Overall, group gross profit declined 4.4% in constant currencies against H1 2022.”
The company added that its outlook remains unchanged. Full-year operating profit is expected to be in line with previous guidance.
Unless otherwise stated, all growth rates given below are in constant currency and measured against the first half of 2021.
EMEA is the group’s largest region, contributing 55% of the group’s first-half gross profit. The region delivered the stongest performance in H1 2023, delivering record gross profit against a tough comparator.
Against 2022, gross profit in Michael Page grew 3%, while the more temporary-focused Page Personnel business was up 6%, according to the company. France, 14% of group gross profit and about a quarter of the region, delivered record gross profit against a very tough comparator, up 2% on 2022. Germany, the group’s second-largest market, also delivered a record first half, up 9%.
Southern Europe grew 3%, with Italy down 1% and Spain up 1%. Benelux was up 4% for the first half, with the Netherlands down 1%, while Belgium grew 15%.
EMEA revenue rose by 6.9%.
Gross profit in Greater China declined 37%. In Mainland China, gross profit was down 42% in 2022 due to the slower-than-anticipated recovery following the lifting of Covid-19 restrictions during the first half. Hong Kong declined 28%. Southeast Asia declined 18%, with Singapore down 22%, while the other five countries in the region declined 17%, collectively. India grew 3% and delivered a record the first half against a very strong comparator, according to the company. Overall, for the first half, Japan declined 3% and Australia declined 2%.
Revenue across Asia Pacific decreased by 4.7% on a constant currency basis.
North America declined against 2022, a record comparator, with the US down 16%. Conditions remained tough throughout the first half, as uncertainty around market conditions impacted candidate and client confidence, and the group experienced a higher level of candidate buybacks.
Latin America delivered growth of 4%. Mexico, the largest country in the Latin America region, declined 6%, and Brazil declined 11%. Elsewhere in Latin America, the five other countries collectively grew 24%, with Argentina, Colombia and Panama all delivering record first halves. Overall, Americas revenue grew by 8.3%.
In the UK, gross profit in the Michael Page business was down 17% in the first half. Page Personnel, which operates at lower salary levels with a higher degree of temporary recruitment, was down 5%. Revenue decreased 3.2% on a reported basis.
“The challenging conditions we saw towards the end of 2022 continued into H1 2023, with lower levels of both candidate and client confidence resulting in delays in decision making and candidates being more reluctant to accept offers,” Kirk said.
Share price
Shares in PageGroup closed down 0.75% to £448.60 (US$571.89) today in London, according to FT.com. They were 10.6% below their 52-week low.