Monday 20 November 2017

Page blames Brexit uncertainty as UK profits remain under pressure

Shares in the group sunk more than 5% after it revealed a 7.6% fall in third quarter gross profits to £34.9 million for the UK.

City stock
City stock

By Holly Williams, Press Association Deputy City Editor

Global recruitment giant Page Group has said Brexit uncertainty continues to take its toll on hiring as it posted another fall in UK earnings.

Shares in the group sunk more than 5% after it revealed a 7.6% fall in third quarter gross profits to £34.9 million for the UK.

Page blamed Brexit fears for a drop in client and jobseeker confidence levels, which it said was being felt most among multinational clients and more senior permanent candidates.

It comes after Page – formerly known as Michael Page International – warned in July over the impact of Brexit on its UK business.

The UK market accounts for almost a fifth of the group’s business.

The permanent jobs market has suffered the greatest blow, with gross profits tumbling 10% in its third quarter, while temporary recruitment has been impacted less, down 2%, added Page.

Financial services recruitment – which collapsed in the immediate aftermath of the UK’s vote to leave the EU – was flat in the group’s third quarter, but now only accounts for 5% of Page’s UK business.

The property and construction jobs market was its best performer in the UK, with gross profits growth of 7%.

Page’s woes come as rival Robert Walters enjoys a sustained bounce-back from last summer’s Brexit blow, having upped its earnings outlook for the second time in recent months on Tuesday.

Steve Ingham, chief executive of Page, hailed strong performance overseas in the third quarter for helping offset “challenging market conditions” across the UK, Singapore and Brazil.

Group-wide earnings lifted 11.8% in the quarter, or 8.8% at constant exchange rates, to £177.3 million thanks to double-digit gains across the Americas, Asia Pacific and Europe, the Middle East and Africa.

Press Association

Promoted Links

Today's news headlines, directly to your inbox every morning.

Promoted Links

Editors Choice

Also in World News