PageGroup Shares Fell 4.58% on Mixed Q4 Results, Weak Profits

The PageGroup PLC (LON: PAGE) share price fell 4.58% after its Q4 earnings results were released. The company revealed that Q4 presented mixed results, highlighted by a decline in gross profit and varying regional performances. The overall group gross profit stood at £237.3 million, marking an 8.9% decrease compared to the same period in 2022. 

Regionally, the performance varied significantly. In Europe, the Middle East, and Africa (EMEA), there was a 6.1% decline in profits. France and Germany, two of the key markets in this region, saw their profits shrink by 5% and 6% respectively. 

The British recruitment company noted that the Americas region experienced an 8.0% drop, with the United States facing a substantial 24% reduction. However, it's noteworthy that Latin America bucked the trend with an impressive 11% growth.

The Asia Pacific region also faced challenges, with an overall decrease of 10.3% in profits. Breaking it down by country, Greater China's profits were down by 8%, Southeast Asia saw a 14% decrease, and Japan experienced a 7% drop. India, however, provided a silver lining with a significant 16% increase in profits.

The United Kingdom encountered the steepest decline among all regions, with a 19.9% profit fall. Within the UK, Michael Page and Page Personnel, two of the company's divisions, reported decreases of 23% and 15% respectively.

Financially, the company remains strong, with a net cash balance of approximately £90 million. This is a decrease from the £136 million reported in the third quarter of 2023 and the £131 million in the fourth quarter of 2022, but it still represents a robust cash position.

Nicholas Kirk, the CEO of PageGroup, said: “We produced a resilient performance in challenging market conditions. Despite the year-on-year decline in gross profit, we are still seeing good activity levels, albeit we did see a deterioration in job flow through Q4. However, these activity levels are not all converting into gross profit due to ongoing lower candidate and client confidence levels. Looking ahead, macroeconomic uncertainty persists. However, we have a highly diversified and adaptable business model, a strong balance sheet, and our cost base is under continuous review and can be adjusted rapidly to match market conditions.” 

Pagegroup share price. 

The Pagegroup share price fell 4.58% to trade at 435.40p from Friday’s closing price of 456.30p.