PageGroup LON: PAGE reported broadly flat second-quarter gross profit as growth in the Americas and Asia Pacific offset weaker trading in France, Northern Europe and the U.K., with management saying market conditions remain challenging but showing signs of improvement in some regions.
Chief Financial Officer Kelvin Stagg said the recruitment group generated second-quarter gross profit of GBP 197.6 million, down 0.2% in constant currencies from the prior year. For the first half, gross profit was GBP 385.2 million, a decline of 2.4% in constant currencies.
“Despite ongoing challenging market conditions, the group produced a good performance in Q2,” Stagg said. He added that about 50% of the group was in growth during the quarter.
The company reduced fee earner headcount by 80, or 1.6%, during the quarter, mainly in France and Northern Europe. PageGroup ended June with 4,914 fee earners and total headcount of 6,679. Non-operational headcount fell by 42, or 2.3%, in the period.
Stagg said gross profit per fee earner, the company’s measure of productivity, rose 5% versus the second quarter of 2025, marking the group’s highest quarterly productivity since 2022. He said the company continued to target higher salary-level roles, and that permanent fee rates remained at record levels.
Regional Performance Mixed Across the Group
In Europe, the Middle East and Africa, PageGroup’s largest region at 51% of the group, gross profit declined 4.8% from the prior year. Temporary recruitment, down 2%, was more resilient than permanent recruitment, down 6%.
Germany, the group’s largest market and 12% of the business, declined 4% in the quarter. Stagg said contracting and Page Executive performed strongly, while Michael Page permanent recruitment was more challenging because of renewed energy price shocks, geopolitical tensions and weak market sentiment.
France, PageGroup’s second-largest market, declined 12% amid political and macroeconomic uncertainty. Stagg said temporary recruitment in France fell 7%, outperforming permanent recruitment, which declined 16%. He said clients have become “increasingly selective, slower to make decisions, and more conservative on salary offers,” increasing time to hire.
Southern Europe returned to growth, with Spain up 9% and Italy up 7%. Stagg said Italy’s growth was driven by a particularly strong performance in Page Executive. The Middle East declined 24% as client and candidate confidence remained subdued amid regional conflict.
The Americas, representing 21% of the group, grew 7.2%. North America rose 5%, with the U.S. also up 5%, marking its seventh consecutive quarter of growth. Stagg said U.S. construction, the company’s largest discipline in that market, grew 12%, while engineering and manufacturing returned to growth, up 22%, helped by demand in aerospace, defense and electronics.
Latin America gross profit rose 10%. Mexico grew 7%, improving from an 8% decline in the first quarter, though Stagg noted ongoing tariff-related uncertainty. Brazil declined 6%, with temporary recruitment up 12% and permanent down 14% as clients delayed hiring and investment decisions ahead of the general election in the second half. Colombia delivered a record quarter, up 15%, supported by the company’s technology-focused consulting business.
Asia Pacific, 17% of the group, grew 9.4%. Asia grew 11%, its fifth consecutive quarter of growth, with nine of 11 markets expanding. Greater China rose 17%, including 28% growth in Mainland China. Japan grew 18%, and India rose 7% to deliver another record quarter. Australia was flat.
In the U.K., representing 11% of the group, gross profit declined 5.3%. Stagg described the market as “tough but stable,” with some optimism in Page Executive, interim and technology. Temporary recruitment rose 1%, while permanent recruitment fell 8%.
Offer-to-Placement Conversion Improves in Growth Markets
Chief Executive Officer Nick Kirk said in the question-and-answer session that improved conversion of offers to placements was most evident in markets where PageGroup’s results are improving, including U.S. construction and parts of Asia.
In U.S. construction, Kirk said conversion levels had returned to what he described as normal levels, “probably four out of five.” In tougher markets such as France, he said conversion was stable but at a lower level, around “three out of five.”
Kirk said the recovery in permanent recruitment in improving markets has been driven more by conversion and productivity than by a surge in activity. “We haven’t seen a huge spike in more jobs, more interviews,” he said. “It’s just the consultants are getting more of a return for the work they’re doing because more of the processes that they’re managing are resulting in successful outcomes.”
Page Executive Delivers Record Quarter
Page Executive grew 15% in the quarter and delivered a record performance, according to Stagg. Kirk said all regions performed strongly in Page Executive, which he described as a key part of the company’s strategy to operate in the market between Michael Page roles and large global executive search firms.
Kirk said Page Executive is 92% permanent recruitment and that its top three global practices are manufacturing, consumer and finance. He added that PageGroup was able to grow Page Executive headcount by 5% while increasing productivity by 10% in the quarter.
Cost Control Continues as Outlook Remains Uncertain
Stagg said PageGroup has implemented cost programs since launching its new strategy, including managing support headcount, moving shared service centers to more cost-effective locations, closing offices and reducing management layers. Excluding savings from fee earner headcount reductions, these initiatives have delivered annualized savings of around GBP 40 million.
Kirk said cost base control has continued in 2026 and has involved some one-off costs, which the company plans to discuss further at its interim results. Stagg later said those one-off costs were expected to be in the mid-single digits and split broadly evenly between the first and second halves of the year.
The company reported net debt of around GBP 7 million at the end of June after paying the 2025 final dividend of about GBP 10 million. Stagg said the cash balance improved in the first week of July to be broadly net flat, and PageGroup expects to end the year with around GBP 30 million to GBP 40 million of net cash.
Kirk said there remains “a high degree of uncertainty” in the outlook for the rest of the year. The board currently expects 2026 operating profit to be in line with company-compiled consensus of around GBP 28 million.
About PageGroup LON: PAGE
PageGroup Changes Lives…
That's our PageGroup Purpose, delivered by c.7,300 people in 36 countries, with a gross profit of over £842.6m in 2024. Our four core PageGroup brands are supported by specialised recruitment teams operating across 25 disciplines.
As a FTSE 250 company, a lot has changed since we were set up in 1976 and the Group continues to grow and evolve. What hasn't changed is our commitment to the success of our clients and candidates, and our own people.
PageGroup's strategy is geared for the long-term.
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