PageGroup says jobs market has weakened further across Europe
Recruitment firm PageGroup has cautioned profits will be towards the lower end of expectations as it said the jobs market had weakened further across Europe.
The company said its group gross profits fell 17.2 per cent to £196.7m in the final quarter of 2024 – down 13 per cent with currency movements stripped out.
Gross profits in the UK tumbled 16.3 per cent over the full year, with a 15.8 per cent drop across the European, Middle East and Africa division – which accounts for more than half of group earnings.
It revealed further role reductions as its fee-earner workforce fell by another 2.4 per cent – or 130 positions – to 5,370 during the quarter, while it also shed another 49 back office roles.
Cost-cutting efforts also saw it close shared service centres in the UK and Singapore, with activities switched instead to Barcelona, Buenos Aires and Kuala Lumpur. These closures saw it take £5m in one-off costs, according the group. It now expects full-year earnings at the lower end of the £49m to £58.5m range pencilled in by the City.
Nicholas Kirk, chief executive of PageGroup, said: “Market conditions remained challenging in the fourth quarter and whilst most markets were sequentially stable, we experienced a further worsening in Europe, particularly in our two largest markets, France and Germany. The conversion of interviews to accepted offers remains the most significant area of challenge as the ongoing macro-economic uncertainty continues to impact candidate and client confidence, also extending the time-to-hire.”