PageGroup (PAGE) Q2 2024 TU earnings summary

Executive summary

• Gross profit for Q2 2024 was £224.3m, down 12% year-over-year in constant currency, with H1 gross profit at £444.2m, down 12.4%, reflecting challenging market conditions and subdued confidence.

• Activity levels softened mid-quarter, with June exit rate down 18% year-over-year, indicating broad-based market weakness.

• Fee earner headcount reduced by 2.7% in Q2, mainly in Europe, but will be held steady to maintain readiness for recovery.

• Productivity per fee earner increased 1% year-over-year despite lower gross profit.

• Temporary recruitment outperformed permanent, but both segments declined.

Financial highlights

• Net cash at end of June 2024 was £56m, down from £67m at Q1 2024 and £98m at Q2 2023, impacted by £35m dividend payout and £9m share purchase for EBT.

• Q2 gross profit declined to £224.3m from £263.8m in Q2 2023; H1 gross profit fell to £444.2m from £526.8m in H1 2023.

• Permanent recruitment gross profit declined 12.8% in Q2; temporary recruitment declined 9.8%.

• Foreign exchange negatively impacted reported gross profit by £7.9m.

• Payment of 2023 final dividend (£35.2m) and share purchase into EBT (~£9m) during Q2.

Outlook and guidance

• Board expects full-year 2024 operating profit to be around £60m, reflecting weaker June trading and increased macro/geopolitical uncertainty.

• No recovery expected in H2 2024; stabilization anticipated, with potential recovery pushed to H1 2025.

• Intention to broadly maintain fee earner headcount to be positioned for market recovery.

• Forward activity KPIs, such as new jobs registered and interviews, softened during the quarter.