PageGroup (PAGE) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 gross profit was £194.2 million, down 9.2% in constant currencies, reflecting challenging macroeconomic conditions and subdued client and candidate confidence impacting hiring decisions.

• Fee earner headcount reduced by 74 (1.4%) to 5,296, mainly in Europe, with total headcount at 7,228, driven by weaker trading and shared service centre transition.

• Productivity per fee earner remained high, down just 1% year-over-year despite market headwinds.

• Cost base optimization initiatives, including management structure simplification and leadership reduction, are expected to deliver £15 million annual savings from 2026, with a one-off £15 million charge in 2025.

• The balance sheet remained strong with net cash of approximately £54 million at March-end, down from £95 million after bonus and profit share payouts.

Financial highlights

• Group gross profit: £194.2 million, down 11.7% reported and 9.2% constant currency year-over-year.

• Gross profit per fee earner declined 1% year-over-year.

• Permanent recruitment gross profit: £140.4 million, down 12.4% reported and 9.9% constant currency; temporary recruitment: £53.8 million, down 10.0% reported and 7.1% constant currency.

• Foreign exchange reduced reported gross profit by 2.5 percentage points (£5.6 million).

• Total fee earners: 5,296 at 31 March 2025 (Q1 2024: 5,751).

Outlook and guidance

• No forward-looking guidance provided due to recent tariff introductions and ongoing market uncertainty.

• Management remains focused on balancing near-term productivity with positioning for future opportunities.

• Continued review of fee earner headcount based on productivity and future opportunities.