Recruiter PageGroup downgrades FY profit expectations

11th Jan 2023 07:51

(Sharecast News) - Recruiter PageGroup downgraded its full-year profit expectations on Wednesday as it highlighted a slowdown in the fourth quarter.

The company now expects 2022 operating profit of around £195m. It had said in October that profit would meet consensus expectations of £204m.

Despite the softening towards the end of the fourth quarter, PageGroup reported a record year in 2022, with group gross profit up 20% year-on-year and 3.5% higher in the fourth quarter.

Chief executive Nicholas Kirk said: "As the quarter progressed, conditions became increasingly challenging and we saw a reduction in both candidate and client confidence, leading to further delays in decision making, as well as candidates being more reluctant to accept offers.

"Due to these tougher trading conditions, gross profit per fee earner, our measure of productivity, declined 12% compared to Q4 2021. Given the slowdown in trading towards the end of Q4, we now expect 2022 full year operating profit to be circa £195m."