PageGroup (PAGE) H1 2024 earnings summary

Executive summary

• Gross profit for H1 2024 was £444.1m, down 12.4%–15.7% year-over-year, reflecting challenging market conditions and subdued client and candidate confidence.

• Operating profit fell to £28.4m from £63.9m in H1 2023, with a conversion rate of 6.4% versus 12.1% last year.

• EPS decreased to 5.3p from 13.6p in H1 2023.

• Interim dividend increased by 4.5% to 5.36p per share (£16.8m total), to be paid in October.

• The business remains highly diversified and adaptable, continuing to invest in innovation and technology.

Financial highlights

• Net cash at period end was £57.2m, down from £97.9m in H1 2023 and £32.9m lower since year-end.

• Net assets declined to £274m from £333.9m in H1 2023.

• H1 EBITDA inflow was £61.6m; working capital decreased by £12.4m.

• Tax charge was £10.9m, with an effective tax rate of 39.5%, up from 31.9% in H1 2023.

• Gross profit per fee earner up 0.9% to £77.4k.

Outlook and guidance

• Board expects 2024 operating profit around £60m, in line with previous guidance.

• Intends to maintain fee earner headcount despite market softness.

• Market conditions remain challenging, with softening activity in late H1 and continued caution into H2.

• Effective tax rate for the full year is expected to be approximately 35%.