Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • PAGE's group gross profit declined 9.7% to £389.7 million in H1 2025, with operating profit reduced to £2.1 million due to one-off costs.

  • Underlying operating profit was approximately £15 million in H1 2025, at a conversion rate of 3.8%.

  • Interim dividend declared at 5.36 pence per share, unchanged from the prior year.

PageGroup plc (LSE:PAGE), the specialist professional recruitment company, has released its unaudited half-year results for the six months ended 30 June 2025, reporting a decline in gross profit and operating profit, primarily due to one-off restructuring and transformation costs.

First-Half Performance

For H1 2025, Group gross profit fell 9.7% to £389.7 million, compared to £444.1 million in the same period last year. The operating profit stood at £2.1 million, down from £28.4 million in H1 2024, after recognising approximately £13 million in one-off costs related to restructuring and transformation activities. Excluding these items, the underlying operating profit was approximately £15 million, equating to a conversion rate of 3.8%.

The reported conversion rate, including one-off costs, was 0.5%, compared with 6.4% in the prior-year period. Gross profit per fee earner remained high but showed a 1.9% decrease year-on-year. Fee earner headcount declined by 207, or 3.9%, bringing the total to 5,163 at the end of June 2025.

Market Conditions and Regional Performance

The company noted a mixed performance across its global operations, with subdued levels of client and candidate confidence impacting decision-making and recruitment activity. While some markets demonstrated stability, the overall recruitment environment remained challenging in the face of continued economic uncertainty.

Balance Sheet and Dividends

Net cash at 30 June 2025 was £10.8 million, down from £57.2 million a year earlier. PageGroup declared an interim dividend of 5.36 pence per share, consistent with the prior year’s payout. During the first half of 2025, the company repurchased £8.3 million of shares into its Employee Benefit Trust to hedge exposure under its share plans, compared with £13.2 million in H1 2024.

Full-Year Outlook

The Board maintained its full-year guidance, expecting operating profit for 2025 to be broadly in line with current market consensus of approximately £22 million. The company also reaffirmed its focus on transformation initiatives to improve operational efficiency while navigating a cautious recruitment environment.

Earnings Per Share

For the six-month period, both basic and diluted earnings per share were reported at 0.0 pence, compared with 5.3 pence for both measures in H1 2024.

Shareholder Returns

In addition to the interim dividend, PageGroup’s share repurchase programme continues to form part of its capital allocation strategy, aimed at managing share plan commitments and delivering returns to shareholders.