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Highlights

  • Gross profit for Q1 2025 down 9.2% year-on-year at £194.2 million

  • Client and candidate confidence remains low, impacting hiring decisions

  • Cost-saving measures set to deliver £15 million in annual savings

PageGroup PLC (LSE:PAGE) has reported a 9.2% decline in gross profit for the first quarter of 2025, with earnings falling to £194.2 million compared to Q1 2024. While the drop is significant, it shows a slight recovery from the 13% decrease reported in Q4 2024, indicating a potential easing of downward pressure.

The company continues to face challenges stemming from low levels of confidence among clients and job candidates. This has led to prolonged decision-making cycles and delayed hiring activity across many regions. As a result, PageGroup has reduced its fee earner headcount by 74, bringing the total down to 5,296 — a 1.4% decline during the quarter and a notable decrease from 5,751 in Q1 2024.

Despite the challenging market conditions, productivity has remained resilient, falling by just 1% compared to the same period last year. This suggests that operational efficiency and individual performance levels have held steady even in a contracting environment.

The company’s net cash position stood at approximately £54 million at the end of the quarter, down from around £95 million in Q4 2024 and £67 million in Q1 2024. While this indicates a decline, the cash reserves remain robust and sufficient to support ongoing operations and planned restructuring efforts.

Looking ahead, PageGroup acknowledges the uncertainty surrounding the outlook for the remainder of 2025. With the economic environment becoming increasingly volatile and difficult to predict, the company is preparing for continued caution in the hiring market.

In response, PageGroup is initiating cost-saving actions expected to deliver approximately £15 million in annual savings. These changes, set to be implemented within the year, will involve a one-off charge of around £15 million in 2025. The estimated net effect on EBIT for the year is expected to be a reduction of about £10 million.