PageGroup exceeds second-quarter profit expectations as savings offset weak European hiring

British recruitment company PageGroup reported second-quarter gross profit that surpassed market expectations, supported by ongoing cost reductions and stronger hiring activity across the Americas and Asia-Pacific.

The company said its expense-cutting measures are producing the expected benefits, with annualised savings reaching around £40 million. It also noted improving conditions in several markets across the Americas and Asia-Pacific, although hiring activity remains subdued in many regions because of economic uncertainty and geopolitical challenges.

Chief Executive Nicholas Kirk said that while some markets are showing signs of returning to more normal trading conditions, uncertainty continues to cloud the outlook for the remainder of 2026.

PageGroup expects its full-year 2026 operating profit to align with the current analyst consensus estimate of £28 million.

For the quarter ended June 30, the company posted gross profit of £197.6 million, representing a 0.2% decline from the previous year at constant currencies. However, the result was higher than analysts' consensus forecast of £186.8 million.

Performance in the Europe, Middle East and Africa (EMEA) region remained under pressure, with gross profit declining 4.8% due to weaker recruitment demand in Germany, France and the Middle East. Gross profit in the UK fell 5.3%.

EMEA continues to be PageGroup's largest business segment, contributing more than half of total group gross profit, while the UK represents approximately 11% of the total.

The company said the UK recruitment market remains challenging but stable, with encouraging signs emerging in its executive search, interim recruitment and technology hiring businesses.