PageGroup (PAGE) Q2 2024 TU earnings summary

Executive summary

• Q2 2024 gross profit was £224.3m, down 12% in constant currency and 15% reported; H1 gross profit was £444.2m, down 12.4% constant currency and 15.7% reported year-over-year.

• Activity levels softened mid-quarter, with June exit rate down 18% year-over-year.

• Fee earner headcount reduced by 2.7% in Q2, mainly in Europe, but will be held steady going forward; productivity per fee earner increased 1% year-over-year.

• Temporary recruitment outperformed permanent, but both segments declined as clients sought flexibility.

Financial highlights

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

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

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

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

Outlook and guidance

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

• No recovery expected in H2 2024; stabilization anticipated, with recovery likely in H1 2025.

• Consultants will be retained to enable rapid response when market sentiment improves.