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Investing.com -- Shares of PageGroup (LON:PAGE) rose more than 2% on Thursday after the recruitment firm reported a 10.5% year-over-year decline in second-quarter gross profit in constant currency, but results were broadly in line with market expectations.
Gross profit for the quarter ended June 30 fell to £194.8 million, compared to £217.6 million a year earlier.
The decline was driven by continued softness in permanent recruitment, which fell 11.3% in constant currency.
Temporary recruitment declined 8.2%. Productivity, measured by gross profit per fee earner, was down 3% from the same period last year.
For the first half of 2025, gross profit was £389.3 million, down 9.7% in constant currency from the prior year.
Net cash stood at approximately £10 million at the end of June, down from £54 million at the end of March.
CEO Nicholas Kirk said the group delivered a “resilient performance despite ongoing market and tariff-related uncertainty.”
He cited a slight deterioration in activity in Continental Europe, particularly in France and Germany, which are the company’s two largest markets in the region. Both countries reported double-digit declines.
The EMEA region was the weakest in the second quarter, with gross profit down 17.1% in constant currency.
The U.K. recorded a 14.3% decline. By contrast, Asia Pacific posted a 0.6% increase, supported by growth in India, Southeast Asia, and Hong Kong. The Americas region grew 2.9%, with the United States up 14%.
Kirk said Asia and the U.S. saw improvement in trading and customer confidence, though the conversion of accepted offers to placements remained a key challenge. He noted that macroeconomic uncertainty continued to weigh on hiring decisions. Clients remained cautious on permanent hiring, while candidates were hesitant to change roles.
Jefferies, in a research note following the results, said the trading update was “broadly in line with expectations.”
The brokerage observed that while market conditions deteriorated further in Europe, gains in Asia and the U.S. provided some offset. It also said PageGroup’s full-year guidance was consistent with current market estimates.
The company reiterated its guidance for full-year 2025 operating profit to be broadly in line with consensus expectations of approximately £22 million. Jefferies projects £23 million in operating profit for the year.