PageGroup PLC on Wednesday reported a lower second quarter gross profit as performance in permanent recruitment declined.

The recruitment firm said gross profit in the second quarter of 2023 declined 6.2% annually to £263.5 million from £280.9 million.

Productivity declined 4% overall in the second quarter compared to a year prior. This was driven by a 32% decline in Greater China, 22% in Southeast Asia, 17% in the UK, 16% in the US and 10% in Japan. For the Americas, it noted an 8.8% drop.

However, productivity improved 6% in Germany, 5% in India, 3% in Latin America, 1.4% in the Europe, Middle East & Africa region and was flat in France.

PageGroup said permanent recruitment decreased by 11%, however temporary recruitment improved by 11%.

For 2023, Chief Executive Officer Nicholas Kirk said the company expects operating profit to fall 30% to £137.6 million from £196.1 million.

Looking ahead, CEO Kirk said: ‘Looking forward, there remains a high level of global macro-economic and political uncertainty in the majority of our markets. However, against this backdrop, we continue to see candidate shortages and good levels of vacancies, as well as continued high fee rates. We are also seeing the benefits from our investments in innovation and technology, where Customer Connect is supporting productivity and enhancing customer experience and Page Insights is providing real time data to inform business decisions.’

PageGroup shares were 0.6% higher at 425.60 pence each on Wednesday morning in London.

Copyright 2023 Alliance News Ltd. All Rights Reserved.