PageGroup H1 profits tumble as activity in France and Germany deteriorates

(Sharecast News) - Recruiter PageGroup posted a slump in first-half profit on Tuesday as activity in its two biggest markets, France and Germany, deteriorated. In the six months to 30 June, pre-tax profit tumbled 99.2% to £0.2m, while operating profit declined 92.5% to £2.1m. The company pointed to previously announced one-off costs of around £13m in the first half relating to restructuring.

Revenue fell 11.1% on the same period a year earlier to £798.4m.

PageGroup said it continues to expect 2025 operating profit to be broadly in line with current market consensus of around £22m.

Chief executive Nicholas Kirk said: "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. Elsewhere, we saw some improvement in activity, trading and customer confidence in Asia and the US.

"The conversion of accepted offers to placements remained the most significant area of challenge, as ongoing macro-economic uncertainty continued to impact confidence, which extended time-to-hire. Permanent recruitment continued to be impacted more than temporary, as clients sought flexible options and permanent candidates remained reluctant to move jobs."

At 1005 BST, the shares were down 0.9% at 265.60p.