PageGroup PLC on Wednesday reported an annual jump in gross profit despite softening towards the end of the fourth quarter.

The Surrey-based recruiter said gross profit in the fourth quarter of 2022 increased to £266.4 million, up 3.5% from £246.8 million a year earlier.

In the Europe, Middle East and Africa region, quarterly profit was up 12%. In France and Germany, it was up 7% and 14% respectively.

In the Americas, gross profit was up 6.6%.

However, in the Asia Pacific region, gross profit was down 16% as Mainland China plummeted by 52%, while in the UK it was only down 1.9%.

For 2022, gross profit amounted to £1.08 billion, up from £877.7 million a year earlier.

Chief Executive Officer Nicholas Kirk said: ‘2022 was a record year for the group with gross profit growing 20% year-on-year and, in [the fourth quarter], we delivered gross profit growth of 3.5% against Q4 2021. As the quarter progressed, conditions became increasingly challenging and we saw a reduction in both candidate and client confidence, leading to further delays in decision making, as well as candidates being more reluctant to accept offers. Due to these tougher trading conditions, gross profit per fee earner, our measure of productivity, declined 12% compared to Q4 2021.’

Looking ahead, PageGroup expects full-year operating profit to be at £195 million. It also said it continues to see ‘candidates shortages and good levels of vacancies’ against a high level of global macro-economic and political uncertainty in the majority of our markets.

In August, the company said pretax profit jumped 80% to £114.5 million for the six months to June 30, from £63.7 million the year earlier. Revenue climbed 28% to £977.3 million from £766.4 million.

PageGroup said it will issue full-year results on March 9.

Shares were up 3.3% at 453.80 pence each on Wednesday morning in London.

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