UK's PageGroup's annual pretax profit slumps 67%; flags uncertain outlook (updated)
05/03/2026 07:27
PageGroup's annual pretax profit falls 67% Shares drop 18% to lowest since June 2016 PageGroup's headcount reduced by 7.5% last year Adds CEO comment in paragraph 3, analyst comment in 6, shares in 7, details throughout March 5 (Reuters) - British recruiter PageGroup PAGE.L slashed its final dividend after its annual profit tumbled and the company warned the outlook remained uncertain for the jobs market, sending its shares down 18% on Thursday to a near-decade low. Weak business confidence and macroeconomic uncertainties have led firms to delay new appointments, while candidates are wary of switching roles and losing job security, particularly with the growth of artificial intelligence. "Whilst the market outlook remains uncertain due to the unpredictable economic environment, we will continue to control the controllables," CEO Nicholas Kirk said in a statement. PageGroup reported a 67% fall in annual pretax profit to 16.2 million pounds ($21.59 million), hurt by prolonged weak hiring in its key European markets. DIVIDEND CUT LARGER THAN SOME EXPECTED PageGroup proposed a final dividend of 3.21 pence per share for 2025, down 73% compared with 11.75 pence in the prior year. "This was a larger cut than we forecast, but we believe gives the company greater flexibility in future years," RBC Capital Markets analyst Karl Green said in a note. Shares in the company dropped 18% to their lowest level since June 2016. The widening conflict in the Middle East has also raised concerns about inflation and economic growth, which could weigh on recruiters in the near term. Elsewhere in the industry, peer Hays HAYS.L slashed its dividend by 84% and announced the departure of CEO Dirk Hahn late February. Recruiter Robert Walters RWA.L will release its annual results next week. To cope with the downturn, PageGroup cut its staff by about 7.5% last year, it said. "We reduced our fee earner headcount in all four quarters, primarily in Europe and the UK, in line with the tougher trading conditions seen throughout 2025," the company said. ($1 = 0.7504 pounds) (Reporting by Nithyashree R B and Yadarisa Shabong in Bengaluru; Editing by Rashmi Aich and Elaine Hardcastle) ((NithyashreeRB@thomsonreuters.com;))