REG - PageGroup plc - THIRD QUARTER 2025 TRADING UPDATE
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RNS Number : 3741D PageGroup plc 15 October 2025
15 October 2025
THIRD QUARTER 2025 TRADING UPDATE
EUROPE REMAINS CHALLENGING; GROWTH IN US AND ASIA
Q3 Highlights*
· Group gross profit of £187.8m, -6.7%* vs. 2024
· Resilient performance despite market uncertainty, variable results
across the Group
· Continued subdued levels of client and candidate confidence impacting
decision making
· Decrease in fee earner headcount of 120 (-2.3%) to 5,043 (Q2 2025:
5,163)
· Gross profit per fee earner up 1% on Q3 2024
· Net cash of c. £38m (Q2 2025: c. £11m, Q3 2024: c. £93m)
· Interim dividend of £16.7m paid on 10 October 2025
· Cost reduction programme on track to deliver annualised savings of
£15m from 2026
Full Year Outlook
· The Board expects 2025 operating profit to be broadly in line with
current market consensus of £21.5m
* In constant currencies vs 2024 except where stated otherwise
** Excluding Argentina due to hyperinflation
Q3 Gross Profit Analysis
Reported (£m) Constant
Year-on-year % of Group Q3 2025 Q3 2024 % %
EMEA 52% 97.8 106.3 -8.1% -10.2%
Americas 19% 36.4 36.3 +0.4% +3.5%**
Asia Pacific 17% 31.0 32.6 -4.8% -1.2%
UK 12% 22.6 26.4 -14.3% -14.3%
Total 100% 187.8 201.6 -6.8% -6.7%
Permanent 71% 133.1 143.1 -7.0% -6.4%
Temporary 29% 54.7 58.5 -6.5% -7.5%
Nicholas Kirk, Chief Executive Officer, PageGroup, said:
"We continued to experience subdued levels of sentiment and confidence in
Europe, particularly in our two largest markets, France and Germany, as well
as in the UK. However, we delivered a fourth consecutive quarter of growth in
the US, our fourth largest market, and a second consecutive quarter of growth
in Asia. Collectively, these two markets represent a quarter of the Group.
"We remain committed to our strategy and continue to reallocate resources into
the areas of the business where we see the most significant long-term
structural opportunities. Concurrently, we continue to ensure headcount in all
our markets is aligned to activity levels. Overall, our focus remains to
balance near-term productivity with ensuring we are well placed to take
advantage of opportunities when market conditions improve.
"We have made good progress on our cost optimisation programme during the
year, which is on track to deliver annualised savings of c. £15m from 2026.
"Despite the uncertain outlook due to the unpredictable economic environment,
we remain confident in the execution of our strategy, given our highly
diversified and adaptable business model, strong balance sheet and our cost
base that is under continuous review."
Trading Summary
Group gross profit declined 6.7% in constant currencies against Q3 2024. In
line with Q2, we saw variable market conditions across the Group, with ongoing
challenging conditions in Continental Europe and the UK. However, we saw
growth continue in Asia and the US.
While our fee rates remained at high levels, as clients' recruitment budgets
have tightened, they have become more risk averse, which has continued to slow
the recruitment process, impacting time-to-hire. Although salary levels remain
strong, 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 higher 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.
During periods of market uncertainty, clients often seek more flexible options
in temporary recruitment. However, due to softer activity and trading in our
European businesses, where we have a higher proportion of non-perm business,
as well as a tougher comparator in temporary recruitment, we saw similar
declines across temporary (-7.5%) and permanent recruitment (-6.4%) in Q3. We
reduced our fee earner headcount by 120 (-2.3%) in the quarter, mainly in
Europe. Productivity, measured as gross profit per fee earner, grew 1% versus
Q3 2024, despite the tough macro-economic conditions.
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, and we continue to work with our
partners to deploy AI and automation tools into our working environment.
Geographical Analysis (unless stated otherwise all growth rates are vs. 2024
and in constant currency)
EMEA Gross Profit (£m) Growth Rates
(52% of Group) 2025 2024 Reported Constant
Q3 97.8 106.3 -8.1% -10.2%
· Germany (13% of Group) -11%
· France (12% of Group) -16%
· Spain +3%
· Netherlands -14%
· Italy -6%
· Belgium -10%
Total Headcount at 30 September 2025: 3,262 (30 June 2025: 3,354)
In Europe, Middle East and Africa, Q3 gross profit declined 10.2% against 2024
to £97.8m. We continued to see tough trading conditions, with low levels of
candidate and client confidence. Germany, the Group's largest market, declined
11% in Q3, an improvement on the decline of 21% in Q2 2025. The market remains
challenging but stable, with companies continuing to limit and delay hiring
decisions due to macroeconomic uncertainty. Our Technology focused Interim
business was the most resilient, down 5%. However tough conditions continued
in Michael Page, down 18%. France, the Group's second largest market, was down
16%. Temporary recruitment, down 4%, outperformed permanent, down 26%,
indicative of the ongoing uncertainty in the market. Spain grew 3%, with
particularly strong results in Page Executive. Elsewhere in Europe, we saw
challenging market conditions in all countries. In response to the ongoing
challenging market conditions in Q3, we reduced our fee earner headcount by
79, mainly in Germany and France.
Americas Gross Profit (£m) Growth Rates
(19% of Group) 2025 2024 Reported Constant
Q3 36.4 36.3 +0.4% +3.5%**
· North America (11% of Group) +10%
o US +10%
· Latin America (8% of Group) -4%**
o Mexico -12%
o Brazil +0%
Total Headcount at 30 September 2025: 1,294 (30 June 2025: 1,313)
** Excluding Argentina due to hyperinflation
In the Americas, gross profit was £36.4m, up 3.5% excluding Argentina due to
hyperinflation. In the US, gross profit grew 10%, its fourth consecutive
quarter of growth. We saw good levels of activity and trading, with continued
strong results particularly in Manufacturing and Construction. In Latin
America, excluding Argentina, the region declined 4%. Mexico, our largest
country in the region, was down 12%, due to ongoing tariff uncertainty. Brazil
was flat, with challenging conditions in permanent recruitment, but a strong
performance in temporary. Elsewhere in Latin America, our remaining countries
grew 1%, collectively. Overall fee earner headcount decreased by 16 in the
quarter, mainly in Brazil, partially offset by additions in the US.
Asia Pacific Gross Profit (£m) Growth Rates
(17% of Group) 2025 2024 Reported Constant
Q3 31.0 32.6 -4.8% -1.2%
· Asia (14% of Group) +1%
· South East Asia (5% of Group and 33% of Asia) +5%
· Greater China (4% of Group and 28% of Asia) -7%
o Mainland China -20%
o Hong Kong +8%
· Japan -2%
· India +11%
· Australia -12%
Total Headcount at 30 September 2025: 1,471 (30 June 2025: 1,471)
In Asia Pacific, Q3 gross profit was down 1.2% against 2024 to £31.0m. We
continued to see improved trading conditions and a second consecutive quarter
of growth in Asia, up 1%. South East Asia grew 5%, with improved conditions
across most of our markets in this region. Conditions remained tough in
Greater China, down 7% in Q3. Mainland China declined 20%, but Hong Kong grew
8%, driven by another particularly strong performance in Page Executive. Japan
declined 2%. India, where we now have almost 250 fee earners, grew 11%, with
continued strong trading conditions. Australia declined 12%, with particularly
challenging conditions in New South Wales. Our fee earner headcount in the
region decreased by 9 in Q3.
UK Gross Profit (£m) Growth Rate
(12% of Group) 2025 2024
Q3 22.6 26.4 -14.3%
Total Headcount at 30 September 2025: 876 (30 June 2025: 896)
In the UK, gross profit for Q3 declined 14.3% against 2024 to £22.6m, in line
with Q2. We continued to see clients deferring hiring decisions and candidates
cautious about accepting offers. Permanent recruitment declined 12% against
2024, with temporary down 19% due to the closure of our UK Page Personnel
business this year, which had a greater degree of temporary recruitment. Our
fee earner headcount decreased by 16 in the quarter.
Perm/Temp mix
Gross profit from permanent recruitment decreased 7.0% in reported rates and
6.4% in constant currencies to £133.1m (Q3 2024: £143.1m). Gross profit from
temporary recruitment decreased 6.5% in reported rates and 7.5% in constant
currencies to £54.7m (Q3 2024: £58.5m). This resulted in a ratio of
permanent to temporary recruitment of 71:29 (Q3 2024: 71:29).
Headcount
We reduced our fee earner headcount by 120 (-2.3%) during Q3, mainly in
Europe. We continued to reallocate resources into markets where we saw
improvement in activity levels, such as in Asia and the US. Our non-operations
headcount decreased by 11 (-0.6%) in Q3. Overall, the Group had 5,043 fee
earners and a total headcount of 6,903.
Restructuring Costs
As previously announced, against the ongoing challenging trading conditions,
we have taken robust action to optimise the cost base by simplifying our
management structure, reducing our leadership team and improving the
efficiency of our business support functions. These initiatives will incur a
one-off cost of c. £15m, of which c. £13m was incurred in H1. This is
partially offset by savings in H2 2025 of c. £5m. Going forward, these will
deliver annualised savings of c. £15m per annum.
Financial Position
Save for the cash generated by Q3 trading as detailed above and the payment of
the 2025 interim dividend of £16.7m on 10 October 2025, there have been no
other significant changes in the financial position of the Group since the
publication of the results for the quarter ended 30 June 2025. Net cash at 30
September 2025 was c. £38m (Q2 2025: c. £11m, Q3 2024: c. £93m).
Shares
At 30 September 2025 there were 328,618,774 Ordinary shares in issue, of which
18,617,958 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 17,255,201 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 Third Quarter 2025 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 Fourth Quarter Trading Update on 13 January 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 / Susanne Yule
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/68b189f5e255d400105b7d42/pvytk
(https://url.uk.m.mimecastprotect.com/s/1cI2C1rKjcpVn6A7CLfYtVP0j7?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 00 57 07 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 15 October 2025 at:
https://www.page.com/presentations/year/2025
(https://www.page.com/presentations/year/2025)
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