PageGroup Q4 Earnings Call Highlights

PageGroup (LON:PAGE) reported lower gross profit for the fourth quarter and full year of 2025, while management highlighted uneven regional trading conditions and continued pressure from cautious client and candidate behavior. On the company’s Q4 trading update call, Chief Financial Officer Kelvin Stagg said the group delivered quarterly gross profit of GBP 190.7 million, down 4.6% in constant currencies versus Q4 2024. Full-year gross profit was GBP 768.2 million, a decline of 7.8% compared with 2024.

Executives described the operating backdrop as uncertain, marked by subdued confidence that has slowed recruitment decisions and lengthened hiring timelines. Stagg said the “conversion of offers to placements” remained the most significant challenge across much of the business, as clients tightened budgets and grew more risk-averse.

Productivity gains and headcount changes

Despite the difficult environment, PageGroup said productivity improved. Stagg noted that gross profit per fee earner increased 3% compared with Q4 2024, with fee rates remaining “at high levels.” He added that salary levels stayed strong, but candidate pay increases were no longer as elevated as in 2022 and early 2023, contributing to lower offer-to-placement conversion in weaker markets.

Fee earner headcount fell by 75 in the quarter (a 1.5% reduction), mainly due to attrition in December and with reductions concentrated in Europe. Non-operations headcount declined by 8. The group ended the period with 4,968 fee earners and a total headcount of 6,820. Management reiterated its intent to keep staffing aligned to activity levels while reallocating resources toward markets and segments with stronger long-term opportunities.

Regional performance: Europe and U.K. weak; U.S. and Asia growth

Management said regional trends remained mixed, consistent with the prior two quarters. Stagg pointed to continued weakness in continental Europe and the U.K., offset by ongoing growth in the U.S. and Asia. He said the U.S. delivered a fifth consecutive quarter of growth, Asia a third consecutive quarter of growth, and Greater China recorded its first quarter of growth since 2022.

• Europe, Middle East and Africa (53% of group): gross profit declined 8.9% year over year in Q4. France, the largest market (13% of group), fell 17%, with temporary recruitment down 11% and permanent down 22%. Germany (12% of group) declined 5%, improving from a decline of 11% in Q3, and the interim business grew 1%. Spain rose 10%. Stagg said fee earner headcount in the region reduced in the quarter, primarily in Europe.
• Americas (19% of group, excluding Argentina): gross profit grew 2.4% in Q4. The U.S. rose 5%, with strong results in construction. Latin America (excluding Argentina) grew 1%, with Brazil up 6% driven by temporary recruitment growth of nearly 30%. Mexico declined 17% due to tariff uncertainty, while Colombia rose 22% with strength in technology-focused Page Consulting. Fee earner headcount increased by 10% in the quarter.
• Asia-Pacific (16% of group): Q4 gross profit increased 6.4%. Asia grew 7%, with Southeast Asia up 8%. Greater China grew 5%, with Mainland China up 10%. Japan rose 3%, India increased 17%, and Australia was flat—its first quarter without decline since 2022. Regional fee earner headcount was stable.
• United Kingdom (12% of group): gross profit declined 10.1%. Stagg said clients continued to delay hiring decisions and candidates remained cautious about accepting offers. Fee earner headcount reduced by 13% in Q4.

Management commentary: France pressures and improving conversion in growth markets

Chief Executive Officer Nicholas Kirk said Q4 trading trends were “relatively even” through the quarter, with no notable increase in client discussions about hiring freezes. He noted that end-of-year conversations typically focus on closing existing processes rather than setting new-year budgets, and he suggested visibility should improve later in Q1.

On France, Kirk attributed the persistent weakness to market conditions and a deterioration in confidence during the quarter. He cited uncertainty around the government’s draft finance bill and its perceived business impact, which he said led some clients to postpone recruitment. Kirk also said job acquisition deteriorated in France and that public sector activity—about 6% of the company’s French business—fell 29% in Q4 amid broader political uncertainty. He stated the performance was not linked to changes in the Page Personnel brand in France, saying no changes have been made there.

Kirk and Stagg repeatedly returned to “conversion of offers to placements” as the key swing factor. They said improved markets such as the U.S. and Greater China were being driven less by increased activity levels and more by improved end-of-process negotiations and a greater willingness to close deals.

Cash, cost actions, and outlook

Stagg said net cash was about GBP 31 million at the end of December, down from GBP 38 million at the end of Q3 after paying an interim dividend of GBP 16.7 million on October 10. Early January receipts lifted net cash to GBP 40 million as of January 9.

Discussing near-term cash movements, Stagg said the company expected an outflow of GBP 20 million to GBP 25 million in January related to annual bonuses and Q4 profit share, implying a potential end-January cash position of GBP 15 million to GBP 20 million. He added that PageGroup historically targeted a minimum of GBP 50 million of net cash, but improvements in liquidity management mean it can “probably run it closer to GBP 25 million today.” On dividends, he said he was “not minded to fund dividends out of debt” and that the company would provide an update at the preliminary results.

On costs, Stagg said PageGroup is not planning a restructuring program on the same scale as the prior year, when it recorded GBP 15 million of one-off restructuring charges. He said the largest portion of those savings was tied to right-sizing the European management team, with additional actions linked to an HR transformation program and deployment of SAP SuccessFactors, including moving transactional activity to shared service centers.

The company reiterated its financial expectation for the year ahead. Stagg said PageGroup expects 2025 full-year operating profit to be broadly in line with current market consensus of GBP 21.1 million, while maintaining a focus on cost control, productivity, and strategic resource allocation amid an unpredictable economic environment.

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.