PageGroup PLC has released its trading update for Q4 2023, reporting a resilient performance in the face of challenging market conditions. The group gross profit stood at £237.3m, marking an 8.9% decline compared to the previous year. The EMEA region saw a 6.1% decline, with France and Germany experiencing decreases of 5% and 6% respectively. The Americas reported an 8% decline, with the US at -24% and Latin America at +11%. Asia Pacific saw a 10.3% decline, with India being the only market showing growth at +16%. The UK reported a significant decline of 19.9%, with Michael Page at -23% and Page Personnel at -15%.

The company's fee earner headcount decreased by 224 to 5,851, and the net cash position was approximately £90m. The full-year operating profit is expected to be slightly below the previous guidance of £120m - £125m. The gross profit analysis for Q4 2023 shows a decline of 11.1% compared to the previous year, with permanent placements at -16.3% and temporary placements at +3.9%.

Nicholas Kirk, Chief Executive Officer of PageGroup, highlighted the company's resilient performance in challenging market conditions. He emphasized the good activity levels but noted that the lower levels of candidate and client confidence were affecting the conversion of activity into gross profit. Kirk expressed confidence in the company's ability to perform well in the challenging markets and implement the new strategy to drive long-term profitability.

The trading summary revealed that the tougher market conditions persisted into Q4, with low levels of client and candidate confidence delaying time to hire, particularly in permanent recruitment. However, activity levels remained good, and there were acute shortages of highly skilled candidates in nearly all markets, supporting high fee rates. Temporary recruitment outperformed permanent recruitment, with a 5% increase compared to a 14% decline in permanent placements.

In the EMEA region, gross profit declined by 6.1% to £132.4m, with France and Germany experiencing declines of 5% and 6% respectively. Temporary recruitment was more resilient than permanent recruitment, reflecting the uncertainty in the market. The company reduced its fee earner headcount by 224, with reductions made in all regions. Productivity, measured as gross profit per fee earner, was up 8% versus Q4 2022, as a result of the action taken on fee earner headcount over the past 12 months.