PageGroup enjoys best quarter for seven years

PageGroup expects its full year operating profit to be marginally ahead of consensus after the recruiter notched its highest quarterly growth rate in seven years.

Group gross profit of £207.7m in the third quarter was up 17.2% or 19.7% if ignoring currency swings that had an adverse effect of around £4m.

Markets seen as large and high-potential, namely Asia Pacific, South East Asia, US, Latin America and Germany, grew 30% collectively, with all five delivering record quarters.

Then, among the six 'large, proven' markets, the UK returned to growth, up 0.8%, France grew 21%, Italy and the Netherlands continued to perform well at 18% and 14% respectively, Spain remained at 8%, while Australian growth picked up to 17%.

Outside these categories, India and Japan repaid investment with growth of 68% and 38% respectively.

"Demonstrating our continued confidence in many of our markets, the group added 242 fee earners in the quarter and now has a record total headcount of 7,718," said chief executive Steve Ingham, with the investment mainly into large, high potential markets.

He added that the focus will remain on driving profitable growth as he aims towards a 10,000 headcount, £1bn of annual gross profit and £200-250m of operating profit. For the full year the average analyst forecast points to operating profit of £138.7m.

"We are pleased with the group's continued strong performance and now expect 2018 operating profit to be marginally ahead of the consensus of current market forecasts."