In key news on UK stocks, shares of FTSE 250-listed PageGroup PLC (GB:PAGE) fell sharply after the company reported lower Q1 profits due to a hiring slowdown in its major markets. According to the company’s latest trading update, the gross profit for the first quarter of FY24 declined by 12.8% on a constant currency basis to £219.7 million compared to the previous year. PageGroup shares were trading down by over 8% today, as of writing.
PageGroup is a British recruitment company providing services across 37 countries around the world.
PageGroup Faces Hiring Slowdown
During the challenging trading environment in Q1, which continued from the previous quarter, PageGroup observed a cautious approach from both employers and job seekers, resulting in sluggish performance. The client’s recruitment budgets continue to be tight, leading to a slowdown in the hiring process.
Among its segments, gross profit from permanent positions witnessed a significant decline of 14.9% on a constant currency basis, whereas profit from temporary positions dropped by 6.7% in Q1. Regionally, the UK’s first-quarter gross profit was hit hardest, declining 19.2% at constant currency to £27.1 million. This was followed by Asia Pacific, where gross profit fell by 15.7%.
Post-update, analyst Kean Marden from Jefferies described the numbers as worse than expected, noting weak momentum across all regions, except the Americas. He further stated that the timing of the revenue dip is unfortunate, as March and September usually contribute the most to the company’s annual profits.
What is the Share Price Forecast for Page Group?
According to TipRanks’ consensus, PAGE stock has received a Moderate Buy rating based on two Holds and one Buy recommendation. The PageGroup share price forecast is 491.67p, which is 10.4% above the current trading level.
