PageGroup PLC on Wednesday affirmed yearly guidance after a ‘strong’ third-quarter, but noted most of its regions have seen a small number of jobs being pulled due to a loss of economic confidence.
The Surrey, England-based recruiter said gross profit in the third-quarter of 2022 rose 14% to £270.5 million from £228.1 million a year earlier.
PageGroup, however, drew attention to a 26% gross profit fall in Greater China due Covid-19 curbs. Gross profit was down 32% in mainland China, driven by the continued Covid-19 lockdowns and restrictions.
‘We also saw a slight softening in client confidence across the majority of our regions. This led to a small number of jobs being withdrawn and a slowdown in time to hire in a number of our markets towards the end of the quarter,’ Chief Executive Officer Steve Ingham warned.
Looking ahead, PageGroup expects annual operating profit in line with £204 million market consensus. PageGroup reported £168.5 million in operating profit in 2021.
PageGroup reported a pretax profit of £114.5 million in the six months to June 30, from £63.7 million last year. Revenue climbed 28% to £977.3 million from £766.4 million.
Shares were down 0.3% at 368.80 pence each on Wednesday morning in London.
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