PageGroup profits from strong labour market

Profits at recruitment consultancy PageGroup jumped sharply in the first half of the year, as the UK-listed company benefited from wage inflation and a shortage of candidates for jobs.

The company said operating profit for the first half rose 79 per cent to £115mn. Similar to other recruitment companies, PageGroup has done well out of the strong jobs market around the world as employers rush to fill vacancies and Covid-19 restrictions ease.

PageGroup said it would pay out a special dividend of 26.71p a share to investors, along with an interim dividend of 4.91p a share, although its financial outlook for the year remained unchanged.

Gross profit per fee earner, the recruiter’s measure of productivity, reached a record level of £82,800, up 9 per cent on 2021. PageGroup said this was in part down to video interviewing, which has reduced the time it takes to hire people, as well as favourable trading conditions.

The strongest growth was in the Americas. PageGroup highlighted improvements in the property and construction, technology and healthcare and life sciences sectors in the US, as well as a record performance in Latin America.

“This performance was achieved despite the backdrop of macroeconomic and geopolitical uncertainty as well as continued Covid-19 restrictions in certain markets,” said chief executive Steve Ingham in as statement.

The company’s shares were flat in early trading in London.