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.

• Earnings per share dropped to 5.3p from 13.6p in H1 2023.

• Net cash at period end was £57.2m, down from £97.9m in H1 2023.

• Interim dividend increased by 4.5% to 5.36p per share (£16.8m total).

Financial highlights

• Revenue for H1 2024 was £898.0m, down 13.1% year-over-year.

• EBITDA inflow for H1 was £61.6m.

• Net capital expenditure was £7.4m, down from £11.3m in H1 2023.

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

• Trade and other receivables fell by £53.4m year-over-year to £371.2m.

Outlook and guidance

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

• No significant improvement in trading conditions expected in the near term; market remains challenging.

• Intends to maintain fee earner headcount despite market softness.

• Management remains confident in long-term strategy despite ongoing macroeconomic uncertainty.

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