PageGroup lifts its profits despite Brexit worries drag

Brexit-struck businesses slashing finance and marketing jobs hampered recruitment giant PageGroup’s UK business — but European growth and currency benefits mean it can still put a 10% surge in pre-tax profits for 2016 on its CV.

The jobs business, which has 6000 staff around the world, now only earns a quarter of its profits in the UK, but it’s still its biggest market.

Operating profits in Britain fell 17.4% to £24.2 million as surging technology and legal recruitment failed to make up for the decline in accounting, financial services, sales and marketing, with the latter down 13%.

Page axed 7% of its UK staff during the year, reducing its headcount here to 1411. Growth in continental Europe and Latin America helped overall pre-tax profit at PageGroup — formerly Michael Page — increase 10% to £100 million but chief executive Steve Ingham still lamented: “In the UK, client and candidate confidence levels were impacted by the EU Referendum result, with activity levels reduced.

“Market conditions were also challenging in several of our other larger markets, particularly Brazil and Financial Services, notably in New York.”

The UK troubles are a bad sign for Britain’s economy as recruiters like PageGroup as well as listed rivals Hays, Robert Walters and SThree are seen as a bell-wether since workers tend to switch jobs more frequently when confidence levels are high.