REG - PageGroup plc - FIRST QUARTER 2026 TRADING UPDATE

PagegroupAnnouncement

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RNS Number : 2689A  PageGroup plc  14 April 2026

 

14 April 2026

FIRST QUARTER 2026 TRADING UPDATE

 

CONTINUED GROWTH IN AMERICAS AND ASIA PACIFIC; UK AND EUROPE REMAIN
CHALLENGING

 

Q1 Highlights*

 

·    Group gross profit of £187.0m, -4.9% vs. 2025

·    Resilient performance despite heightened geopolitical and
macro-economic uncertainty

·    Ongoing subdued levels of client and candidate confidence impacting
decision making

·    Continued tough market conditions in EMEA and the UK

·    Strong performances from Americas and Asia Pacific, both delivering
continued growth

·    Fee earner headcount up 26 (+0.5%) in the quarter to 4,994 (Q4 2025:
4,968), increases in Americas and Asia Pacific

·    Gross profit per fee earner remains high, up 2% on Q1 2025

·    Net debt of c. £7m (Q4 2025: net cash of c. £31m, Q1 2025: net cash
of c. £54m), in line with expectations due to usual Q1 outflows for quarterly
and annual bonuses

·    Middle East conflict driving an increasingly uncertain outlook for
the rest of the year

 

*In constant currencies vs 2025 except where stated otherwise

 

Q1 Gross Profit Analysis

 

                           Reported (£m)             Constant
 Year-on-year  % of Group  Q1 2026  Q1 2025  %       %
 EMEA          54%         100.4    105.9    -5.2%   -9.2%
 Americas      19%         36.5     37.0     -1.5%   +1.1%
 Asia Pacific  16%         29.2     28.0     +4.5%   +9.3%
 UK            11%         20.9     23.6     -11.4%  -11.4%
 Total         100%        187.0    194.5    -3.9%   -4.9%

 Permanent     72%         135.1    140.0    -3.5%   -3.7%
 Temporary     28%         51.9     54.5     -4.8%   -7.8%

 

Nicholas Kirk, Chief Executive Officer, PageGroup, said:

 

"The Group produced another resilient performance despite a backdrop of
heightened geopolitical and macro-economic uncertainty. We delivered continued
growth in Asia Pacific and the Americas, which represent 35% of the Group
collectively. Within these regions, the US and Asia have grown for six and
four quarters in a row, respectively. However, we continued to experience
lower levels of candidate and client confidence in Europe, particularly in our
second largest market, France, as well as in the UK.

 

"We remain committed to our strategy and continue to reallocate resources into
the areas of the business offering the most significant long-term structural
opportunities, ensuring headcount in all our markets is aligned to activity
levels. This was particularly evident in Q1, where, in response to the tougher
conditions, we reduced fee earner headcount in EMEA and the UK but invested in
over 100 fee earners in Asia Pacific and the Americas. Overall, our focus
remains on balancing near-term productivity, which grew 2% in Q1, with
ensuring we are well placed to take advantage of opportunities as market
conditions improve.

"Whilst we have seen signs of a normalisation in trading in some of our
markets, the increased geopolitical and macro-economic risks due to the
conflict in the Middle East create a heightened degree of uncertainty in the
outlook for the rest of the year. Despite this market outlook, we continue to
focus on controlling the controllables, invest in innovation and technology,
and remain confident in the execution of our strategy. We have a highly
diversified and adaptable business model, a strong balance sheet and a cost
base that is under continuous review."

 

Trading Summary

 

Group gross profit declined 4.9% in constant currencies against Q1 2025,
broadly in line with our performance in Q4 2025. We continued to see variable
market conditions across the Group. Market conditions in Continental Europe
and the UK remained tough. However, we delivered a sixth consecutive quarter
of growth in the US, and a fourth consecutive quarter of growth in Asia.

 

We continued to reallocate resources during the quarter in line with these
variable market conditions. Accordingly, in EMEA and the UK we reduced our fee
earner headcount by 80. However, in Asia Pacific and the Americas, due to the
continued growth and to maximise market share, we added 106 fee earners.
Productivity, measured as gross profit per fee earner, remained high and grew
2% versus Q1 2025, despite the challenging macro-economic conditions.

 

We saw permanent recruitment (-3.7%) outperform temporary (-7.8%) in Q1, due
primarily to the growth we saw in the US and Asia, which are predominantly
permanent recruitment markets.

 

Despite the tightening of clients' recruitment budgets in many markets, which
extends time to hire, our fee rates remained at high levels. Salary levels
remain strong, although the level of increases offered to candidates were not
as elevated as they were in 2022 and early 2023 and, as a consequence, the
conversion of offers to placements remained the most significant challenge.
Where we have experienced improved trading, this was driven by a normalisation
of levels of conversion of offers to placements. In our other countries, where
trading remains challenging, we are yet to see any improvement in this metric.

 

We continue to see the benefits of our investments in innovation and
technology. Customer Connect is supporting productivity and enhancing customer
experience, Page Insights is providing real time data to inform business
decisions for both Page and our customers. We continue to work with our
partners to deploy AI and automation tools into our working environment, such
as our Business Development Hub which uses internal data and external feeds to
help fee earners prioritise their time and focus on the roles that are most
likely to be filled.

 

Geographical Analysis (unless stated otherwise all growth rates are vs. 2025
and in constant currency)

 

 EMEA            Gross Profit (£m)       Growth Rates
 (54% of Group)   2026        2025       Reported  Constant
 Q1              100.4       105.9       -5.2%     -9.2%

 ·    Germany (13% of Group) -7%

 ·    France (12% of Group) -14%

 ·    Spain +1%

 ·    Italy -3%

 ·    Belgium -8%

 ·    Netherlands -26%

 ·    Middle East -12%

 Total Headcount at 31 March 2026: 3,152 (31 December 2025: 3,204)

 

In Europe, Middle East and Africa, gross profit declined 9.2% to £100.4m. We
continued to see tough conditions throughout the region, with low levels of
candidate and client confidence. Germany, the Group's largest market, declined
7%, broadly in line with Q4, with activity levels and business sentiment
remaining stable. In line with Q4, our Interim business was the most
resilient, down 1%. France, our second largest market, declined 14%, due to
the ongoing political and macro-economic uncertainty, leading to continued
high levels of client and candidate caution. Temporary recruitment, down 10%,
continued to outperform permanent, down 18%, where we saw a 9% reduction in
job acquisition per fee earner in Q1. Spain continued to be the strongest
performing market in the region, growing 1%, with good levels of candidate and
client confidence. Elsewhere in Europe, market conditions remained challenging
in all countries. The Middle East, where we have c. 70 people, declined 12%
with client and candidate confidence having deteriorated further due to the
regional conflict, which increases the risk of backouts and hiring freezes. In
response to these market conditions, we reduced our fee earner headcount in
EMEA by 51.

 

 Americas        Gross Profit (£m)       Growth Rates
 (19% of Group)  2026        2025        Reported  Constant
 Q1              36.5        37.0        -1.5%     +1.1%

 ·    North America (11% of Group) +1%

 o  US +1%

 ·    Latin America (8% of Group) +1%

 o  Mexico -8%

 o  Brazil -7%

 o  Colombia +15%

 Total Headcount at 31 March 2026: 1,334 (31 December 2025: 1,308)

 

In the Americas, we delivered gross profit of £36.5m, up 1.1% against Q1
2025. In the US, we grew 1%, our sixth consecutive quarter of growth. Our
largest discipline, Construction, continued to deliver the standout result, up
14%; however, we are yet to see a broad-based recovery with tough conditions
in most other disciplines. In Latin America, gross profit grew 1%. Mexico, our
largest country in the region, declined 8%, an improvement on the 17% decline
in Q4, although we continued to see ongoing tariff related uncertainty. Brazil
was down 7%, albeit against a tough comparator. Temporary recruitment, up 12%,
continued to outperform permanent, down 17%. Colombia, which now represents c.
20% of Latin America, delivered the standout performance, up 15%, with
particularly strong trading in our Technology focused Consulting business.
Elsewhere in the region, our other four countries grew 16%, collectively.
Overall fee earner headcount increased by 48 in the quarter, mainly in the US.

 

 Asia Pacific    Gross Profit (£m)       Growth Rates
 (16% of Group)  2026        2025        Reported  Constant
 Q1              29.2        28.0        +4.5%     +9.3%

 ·    Asia (13% of Group) +10%

 ·    Greater China (4% of Group and 30% of Asia) +12%

 o  Mainland China +21%

 o  Hong Kong +4%

 ·    South East Asia +5%

 ·    India +10%

 ·    Japan +17%

 ·    Australia +4%

 Total Headcount at 31 March 2026: 1,517 (31 December 2025: 1,468)

 

In Asia Pacific, Q1 gross profit grew 9.3% against 2025 to £29.2m. Asia was
up 10%, its fourth consecutive quarter of growth, and an improvement on the 7%
in Q4. Greater China grew 12%, albeit against a soft comparator. We continued
to see improvements in both candidate and client confidence which is helping
to secure placements, particularly for more senior roles. Mainland China and
Hong Kong were up 21% and 4%, respectively. South East Asia grew 5%, with
Singapore up 16% and strong trading conditions across most of our markets in
this region. India, where we have over 260 fee earners, was up 10%, its fifth
consecutive quarter of double-digit growth. In Japan, where we have invested
in fee earners due to the size of the market and its strategic importance, we
grew 17%, a notable improvement on the growth of 3% in Q4. Australia was up
4%, its second consecutive quarter of growth, with good results across most
states. We increased our fee earner headcount in the region by 58, mainly in
South East Asia and India.

 

 UK              Gross Profit (£m)       Growth Rate
 (11% of Group)  2026        2025
 Q1              20.9        23.6        -11.4%

 ·    Permanent -14%

 ·    Temporary -7%

 Total Headcount at 31 March 2026: 798 (31 December 2025: 840)

 

In the UK, Q1 gross profit declined 11.4% against 2025 to £20.9m. The market
remains tough, with clients continuing to delay hiring decisions and
candidates remaining cautious about accepting offers. Reflective of market
uncertainty, temporary recruitment, down 7%, outperformed permanent, down 14%,
where we saw a 9% reduction in job acquisition per fee earner. Our fee earner
headcount reduced by 29 in the quarter.

 

Perm/Temp Mix

 

Gross profit from permanent recruitment decreased 3.5% in reported rates and
3.7% in constant currencies to £135.1m (Q1 2025: £140.0m). Gross profit from
temporary recruitment decreased 4.8% in reported rates and 7.8% in constant
currencies to £51.9m (Q1 2025: £54.5m). This was due primarily to the growth
we saw in the US and Asia, which are predominantly permanent recruitment
markets. This resulted in a ratio of permanent to temporary recruitment gross
profit of 72:28 (Q1 2025: 72:28).

 

Headcount

 

Our fee earner headcount increased by 26 (+0.5%) during Q1, driven by growth
in the Americas and Asia Pacific, partially offset by reductions in Europe and
the UK. We continued to reallocate resources into markets where we saw
improvements in business confidence. Our non-operations headcount reduced by
45 (-2.4%) in Q1. Overall, the Group had 4,994 fee earners and a total
headcount of 6,801.

 

Foreign Exchange

 

Foreign exchange movements had a positive impact on the Group's results in Q1,
increasing our Q1 reported gross profit by 1.0 percentage point, or £2.0m.

 

Financial Position

 

Save for the effects of Q1 trading detailed above, there have been no other
significant changes in the financial position of the Group since the
publication of the results for the year ended 31 December 2025. At 31 March
2026, we had net debt of c. £7m (Q4 2025: net cash of c. £31m, Q1 2025: net
cash of c. £54m), the decrease in the quarter was in line with expectations
due to the usual seasonal payment of annual and quarterly bonuses.

 

 

Shares

 

At 31 March 2026 there were 328,618,774 Ordinary shares in issue, of which
18,180,814 were held by the Employee Benefit Trust (EBT). The rights to
receive dividends and to exercise voting rights have been waived by the EBT
over 17,470,372 shares and consequently these shares should be excluded when
calculating earnings per share. The total number of voting rights in the
Company is 328,618,774.

 

 

Cautionary Statement

 

This First Quarter 2026 Trading Update has been prepared solely to provide
additional information to shareholders to assess the Group's strategies and
the potential for those strategies to succeed. The Trading Update should not
be relied on by any other party or for any other purpose. This Trading Update
contains certain forward-looking statements. These statements are made by the
Directors in good faith based on the information available to them up to the
time of their approval of this Trading Update and such statements should be
treated with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such forward-looking
information. This Trading Update has been prepared for the Group as a whole
and therefore gives greater emphasis to those matters that are significant to
PageGroup and its subsidiary undertakings when viewed as a whole.

 

The Group will issue its Q2 Results on 13 July 2026.

 

Enquiries:

 PageGroup                               +44 (0)19 3226 4032
 Nicholas Kirk, Chief Executive Officer
 Kelvin Stagg, Chief Financial Officer

 FTI Consulting                          +44 (0)20 3727 1340
 Richard Mountain / Georgia Badcock

 

The Company will host a conference call and presentation for analysts and
investors at 8.30am today. The live presentation can be viewed by following
the link:

https://www.investis-live.com/pagegroup/69c657313d1719000fc0cf1a/tyjte
(https://url.uk.m.mimecastprotect.com/s/K5URC59O8UMOlLz6szfRSkqfOE?domain=investis-live.com)

 

Please use the following dial-in numbers to join the conference:

 

 United Kingdom (Local)  020 3936 2999
 All other locations     +44 20 3936 2999

 

Please quote participant access code 71 03 34 to gain access to the call.

 

A presentation and recording to accompany the call will be posted on the
Company's website during the course of the morning of 14 April 2026 at:

 

https://www.page.com/presentations/year/2026
(https://www.page.com/presentations/year/2026)

 

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