PageGroup (PAGE) H2 2024 earnings summary

Executive summary

• Market conditions remained challenging throughout 2024, with worsening sentiment in Europe and a slow start to 2025 impacting gross and operating profit year-over-year.

• Activity levels were robust, but conversion of interviews to accepted offers was a key challenge due to macroeconomic uncertainty.

• Strategic focus continued on four growth pillars: core business, technology, Page Executive, and Enterprise Solutions, with strong progress on strategic priorities.

• Productivity remained high due to targeted reductions in fee earner headcount and cost base.

• Progress made on social impact and customer experience goals, with over 130,000 lives changed in 2024 and a client net promoter score of 61.

Financial highlights

• Gross profit for 2024 was £842.6m, down 12.8% in constant currencies from 2023.

• Operating profit fell to £52.4m from £118.8m, with a conversion rate of 6.2%.

• Basic EPS was 9.1p, down from 24.4p in 2023; net cash ended at £95.3m, up from £90.1m.

• Total dividend for the year is 17.11p per share, a 4.5% increase, yielding 5%, though down from 32.24p in 2023.

• Cost base reduced by £100m, including £20m lower bonuses and operational savings.

Outlook and guidance

• Trading remained slow into January and February 2025, with no significant change in regional sentiment from Q4 2024.

• Effective tax rate expected to decrease to around 35% in 2025.

• Board remains confident in long-term strategic opportunities and maintains focus on productivity and cost control.