Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • PAGE gross profit declines by 10.5% year-on-year to GBP 194.8 million in Q2FY25.
  • PageGroup sees 2.5% reduction in fee earner headcount to 5,163 during the period.
  • PAGE shares up 2.91% to trade at GBX 275.80 on 10 July 2025 after trading update.

PageGroup plc (LSE:PAGE) has released its trading update for the second quarter of 2025, reporting group gross profit of GBP 194.8 million, a year-on-year decline of 10.5%. The figures reflect continued pressure from market uncertainty, subdued client and candidate confidence, and extended hiring cycles. Compared to the previous quarter (Q1FY25), gross profit declined at a slightly faster pace.

The company cited mixed performance across regions. While activity levels deteriorated slightly in Continental Europe particularly in key markets like France and Germany there were some signs of improvement in Asia and the United States. According to CEO Nicholas Kirk, the primary challenge remained the conversion of accepted job offers into actual placements, as economic caution persisted across clients and candidates.

Permanent recruitment was more affected than temporary hiring, with clients leaning toward flexible arrangements and permanent jobseekers displaying hesitancy in changing roles. PageGroup continues to reallocate resources to areas of the business with long-term structural opportunities and aligns staffing with prevailing activity levels in each region.

In the second quarter of the financial year 2025 (Q2FY25), PageGroup recorded a reduction in headcount across both operational and non-operational roles. The number of fee earners declined by 133 employees, or 2.5%, bringing the total to 5,163 compared to 5,598 in Q2FY24. Non-operational headcount also fell by 61, representing a 3.2% decrease during the quarter. While productivity remained comparatively strong, it registered a 3% decline versus the same period last year. Additionally, the company’s net cash position dropped significantly to approximately GBP 10 million, down from GBP 54 million in Q1FY25 and GBP 57 million in Q2FY24. Despite these pressures, the ongoing cost reduction programme remains on track.

PageGroup reiterated that while short-term conditions remain difficult, the company is maintaining its strategic focus on technology-driven enhancements. Tools like Customer Connect and Page Insights are being used to improve both internal efficiency and client service. Additionally, the company continues exploring AI and automation in its operations.

The board currently expects full-year 2025 operating profit to be in line with market expectations, estimated at around GBP 22 million. 

Shares of PageGroup rose 2.91% on 10 July 2025 to trade at GBX 275.80 per share.