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(Sharecast News) - Recruiter PageGroup posted a drop in fourth-quarter gross profit on Tuesday as it highlighted ongoing challenging conditions in Continental Europe and the UK.
Gross profit fell 4.6% from the same period a year earlier to 190.7m. While the UK and Continental Europe remained challenging, PageGroup delivered a fifth consecutive quarter of growth in the US and a third consecutive quarter of growth in Asia, where Greater China delivered its first quarter of growth since 2022.
EMEA gross profit declined 8.9% to 102.1m in the fourth quarter, while the UK saw a 10.1% decline to 22m. The Americas and Asia Pacific saw gross profit grow 2.4% to 36.4m and 6.4% to 30.2m, respectively.
In the permanent segment, gross profit fell 4.1% to 135.5m, while temporary profit was down 5.6% to 55.2m.
PageGroup said it expects 2025 operating profit to be broadly in line with current market consensus of 21.1m.
Chief executive Nicholas Kirk said: "The group produced a resilient performance despite the ongoing market uncertainty, which is characterised by continued subdued levels of client and candidate confidence.
"We delivered growth across both the Americas and Asia Pacific regions, with sustained growth in the US, our fourth largest market. Collectively, these two regions represent 35% of the group. However, we continued to experience lower levels of confidence in Europe, particularly in France, our largest market, 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. Overall, our focus remains to balance near-term productivity, which grew 3% in Q4, with ensuring we are well placed to take advantage of opportunities as market conditions improve."
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