Michael Page (LON: PAGE), formerly PageGroup, reported its first quarter of gross profit growth since Q4 2022 today, yet its shares were down about 3.7% in afternoon trading. The FTSE 250 recruiter held full-year profit guidance, but the growth came from the US and Asia while the UK and much of Europe shrank.
The shares opened at 199.2p, above yesterday’s 194.0p close, then faded to 186.8p, down 3.71%, by about 1.34pm on a delayed quote. They fell about 8.5% yesterday from Friday’s 212.0p close, the day Hays reported, though nothing ties the two moves together. They remain well above the 103.1p close of the 22nd of June.
Gross profit, the firm’s fee income from placing candidates, rose to £190.5m from £187.8m, up 1.5% at constant currency (exchange-rate effects stripped out) and 1.4% as reported. Michael Page said 2026 operating profit should be in line with company-compiled consensus of about £29m, so guidance was maintained rather than raised.
The growth was narrow. The Americas rose 8.9% to £41.1m, with the US up 7%, and Asia Pacific rose 14.7% to £35.2m. EMEA (Europe, Middle East and Africa) fell 3.8% to £92.8m, with Germany down 7% and France down 11%. The UK fell 5.5% to £21.4m from £22.6m, 11% of the group. Permanent gross profit grew 1.1% and temporary 2.6% at constant currency. Fee earner headcount fell by 63 to 4,851, and net cash was about £6m against net debt of about £7m at the second quarter.
In the UK, permanent gross profit fell 9% while temporary rose 2%. Michael Page described conditions as tough but stable, with some positive market sentiment that has not yet turned into winning jobs. Chief executive Nicholas Kirk said of the weaker markets:
In France, Northern Europe and the UK, the markets remain stable and we traded in line with expectations. In these markets, permanent recruitment continues to be more challenging than temporary as clients seek greater flexibility.
Nicholas Kirk, chief executive of Michael Page
Hays, a rival recruiter, reported on Monday, as we reported, that UK and Ireland net fees fell 5% and group net fees fell 3% like for like. Net fees and gross profit are different measures, but neither shows a recovering UK.
Kirk also said a significant degree of uncertainty remains. The next test is Michael Page’s fourth-quarter update on the 13th of January, which will show whether growth is broadening beyond the US and Asia.
