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Referendum uncertainty impacts PageGroup’s UK Q2 2016 results

PageGroup has released its results for the second quarter and first half 2016.


The group reported gross profit growth of 3.7% in line with Q1 (8.0% growth on a reported basis).


In Q1, the strongest growth was seen in EMEA, where gross profit is 13.6%. UK gross profit is down 2.3%; the group state it was impacted by pre-Referendum uncertainty. Asia Pacific gross profit is down 3.3%; Asia is down 7% and Australasia is up 7%. In the Americas, gross profit is down 1.15%.


For the first half of the year, gross profit is up 3.6%.


In H1, EMEA gross profit increased 12%. UK gross profit decreased 1.5%, APAC gross profit is down 2.6% and gross profit in the Americas is down 0.8%.


Steve Ingham, chief executive officer, said, “The Group delivered gross profit growth of 3.7% in constant currencies, in line with Q1, and 8.0% growth on a reported basis. We saw good performances in Continental Europe and Latin America (ex-Brazil), which combined now account for around 45% of the Group. However, the challenging market conditions in several of our larger markets, including Greater China, the UK and Brazil, continued. 


“Current market conditions remain stronger at lower salary levels and in temporary roles and this was reflected by the strong growth of 9% in our Page Personnel business, where temporary recruitment represents 40% of gross profit. Our Michael Page business, where temporary recruitment represents only 16%, grew 2%. Overall, temporary recruitment grew by 6.5%, compared to 2.9% in permanent. 


“It is too early to say how the result of the EU Referendum will impact our results going forward, but the environment leading up to the vote caused a slightly weaker result in June. With continued uncertainty in the UK following the Referendum result, ongoing challenges in some of our other larger markets, the unpredictable nature of the current cycle and our limited visibility, we will continue to focus on driving profitable growth, whilst remaining able to respond quickly to any changes in market conditions.”   

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