PageGroup Profits Plummet Amid UK/European Slowdown

PageGroup’s (LON:PAGE) profits tumbled in the first half of 2025 as recruitment activity slowed sharply in the UK and continental Europe, particularly in its largest markets of France and Germany.

The company's shares fell following the release, currently down around 1.2% at 265p per share. Earlier in the morning, the stock dropped as low as 240p. PageGroup is down 26% for the year-to-date and 36% in the last 12 months.

The specialist professional recruiter reported an operating profit of just £2.1 million for the six months to 30 June, down 92.5% from £28.4 million a year earlier.

Meanwhile, profit before tax slumped 99.2% to £0.2 million, as group revenue fell 11.1% to £798.4 million and gross profit dropped 12.3% to £389.7 million.

The company blamed “ongoing macro-economic uncertainty” for dampening both client and candidate confidence, extending hiring timelines and hitting permanent recruitment harder than temporary placements.

For the UK specifically, the company highlighted that the conversion of accepted offers to placements remained a “significant area of challenge. PAGE pointed to ongoing subdued levels of client and candidate confidence impacting decision making and increasing time-to-hire.

Elsewhere, the company booked around £13 million in one-off restructuring and transformation costs, part of a £15 million programme to simplify management and cut overheads, which it expects to yield annual savings from 2026.

In the UK, gross profit fell 13.4%, while EMEA revenue dropped 16% at reported rates. By contrast, Asia and the US saw some improvement in trading and sentiment.

CEO Nicholas Kirk said the group was reallocating resources towards markets and sectors with stronger long-term growth potential, including its Page Executive and Enterprise Solutions divisions, while continuing to invest in technology and AI tools to boost productivity.

Despite the steep fall in earnings, PageGroup maintained its interim dividend at 5.36p per share and reiterated its full-year operating profit guidance of around £22 million, in line with current market consensus.

“Despite the uncertain outlook due to the unpredictable economic environment, we have a highly diversified and adaptable business model, a strong balance sheet and our cost base is under continuous review,” stated Kirk.