PageGroup PLC released its second quarter 2024 trading update, reporting a 12.0% decline in group gross profit compared to the same period in 2023. The company experienced softening activity levels throughout the quarter, with a notable decrease in new jobs registered and the number of interviews. The EMEA region saw a 10.2% decline, with France at -14% and Germany at -9%. The Americas experienced a 6.6% decrease, with the US at -19% and Latin America at -4%. Asia Pacific reported a 19.8% decline, with Greater China at -29% and SE Asia at -12%. The UK saw a 17.4% decrease, with Michael Page at -16% and Page Personnel at -20%.
The company maintained its fee earner headcount, with a decrease of 153 to 5,598. Productivity increased by 1% compared to Q2 2023. PageGroup's net cash stood at approximately £56m. The company's full-year 2024 operating profit is expected to be around £60m due to weaker-than-expected trading in June, increased geopolitical and macro-economic uncertainty, and a more cautious view for the second half of the year.
Nicholas Kirk, Chief Executive Officer of PageGroup, highlighted the challenging market conditions and the softening of activity levels, particularly in new jobs registered and interviews. The company aims to maintain its fee earners at existing levels to capitalize on opportunities as sentiment and confidence improve. PageGroup continues to invest in innovation and technology, leveraging tools such as Customer Connect and Page Insights to enhance productivity and customer experience.
The company reported a 12.0% decline in group gross profit, with a slower end to the quarter and a softening of activity levels. Temporary recruitment outperformed permanent recruitment, and fee earner headcount was reduced by 153. Despite the tough macro-economic conditions, productivity increased by 1% compared to Q2 2023. Geographically, the EMEA region reported a 10.2% decline, with France at -14% and Germany at -9%. The Americas experienced a 6.6% decrease, and Asia Pacific reported a 19.8% decline.
In conclusion, PageGroup PLC faced challenging market conditions in the second quarter of 2024, with a decline in group gross profit and softening activity levels. The company is focused on maintaining its fee earner levels and leveraging its diversified business model, experienced management team, and strong balance sheet to navigate the challenging environment and drive long-term profitability.