Shares of the FTSE 250-listed PageGroup PLC (GB:PAGE) fell by over 4% after the company announced its second profit warning after just six months. Prior to this, the company issued a profit warning alongside its Q2 trading update in July, indicating lower-than-expected profits. In its Q4 trading update, the company stated that it expects its full-year operating profit to be closer to the lower end of the current market consensus range, between £49m and £58.5m. Meanwhile, the total gross profit dropped by 13% year-over-year to £196.7 million in the fourth quarter.
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PageGroup is a UK-based recruitment firm offering services across 37 countries globally.
PageGroup Flags Hiring Slowdown in Europe
According to its latest update, PageGroup stated that a hiring slowdown continues in Europe, especially hitting its key markets like France and Germany. The gross profit in France fell by 17%, while Germany declined by 23% in the fourth quarter. Together, these two countries account for over a quarter of PageGroup’s earnings.
Overall, the EMEA (Europe, the Middle East, and Africa) region experienced the largest impact, with a 15.9% decline in gross profit on a constant currency basis. Next in line was Asia Pacific, which saw a 14.6% decline, followed by the UK with a 13.6% decrease.
On the other hand, profits in the U.S. grew for the first time in two years in Q4 with an increase of 3%. However, Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that it’s premature to consider this as a sustained growth. Streeter also added that given the looming threat of Trump’s trade tariffs on Europe and the uncertain impact of AI (artificial intelligence) on various job sectors, it’s understandable that companies are being cautious with their hiring decisions.
PageGroup Share Price Target
According to TipRanks’ consensus, PAGE stock has received a Moderate Buy rating based on three Hold and two Buy recommendations. The PageGroup share price forecast is 419.0p, which is 41% above the current trading level.
