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PageGroup hits record profits but Brexit worries hurt UK ops
Recruitment firm PageGroup said full year gross profits hit a record £711.6m in 2017 from £621m a year earlier, but warned that Brexit uncertainties were still causing "challenging" conditions in the UK.
In the UK, gross profit fell 3.8 per cent to £140.8m with Page reporting that the macro environment "continued to impact confidence, particularly among some of our multinational clients and more senior permanent candidates".
UK companies are holding off on hiring decisions as the uncertainty surrounding the country's decision to leave the European Union next year grips the economy.
"Both temporary and permanent recruitment were affected equally. Page Personnel, which represented 23% of the UK, declined -2% compared to -3% in Michael Page. Within the disciplines, Financial Services, 5% of the UK, grew 4%. The private sector (87% of the UK) was down 2% and the public sector (13% of the UK) declined by 10%," PageGroup said.
The company added that foreign exchange had a negative impact on fourth quarter results, reducing reported gross profit by £3.4m and operating profit by around £1m, mainly due to currency movements in Asia Pacific and the Americas.
However, full year reported gross profit benefited by £29.4m and operating profit £6m, it added.