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July 07, 2021
UK-based recruiting firm PageGroup plc in a business update said second-quarter gross profit nearly doubled year over year, up 94.1% in foreign currency constant compared to the second quarter of 2020 affected by the pandemic; compared to the second quarter of 2019, the increase is 2.0%.
The company noted a significant improvement in the month of June alone, with gross margin up 11% from June 2019.
“I am pleased to report that the improvement in results we saw in the first quarter continued in April and May, both down 3% from 2019, broadly in line with the exit rate of March, â€said CEO Steve Ingham. “We then saw a clear improvement in June, up 11% compared to 2019. Overall, this means that the Group is up 2.0% over the quarter compared to 2019. This notable improvement in Q2 has was observed across the Group and was carried out despite the context of continued restrictions or blockages in many of our markets. We achieved record quarters in four of our five large high potential markets and in 17 countries. “
In the Americas region, despite being one of the regions most affected by Covid-19, the second quarter gross margin increased 7.7% compared to 2019, making it a record quarter, according to Ingham.
| (millions of pounds sterling) | Q2 2021 | Q2 2020 | % cash | % constant currency exchange | Q2 2021 (millions of US dollars) |
| Europe, Middle East and Africa | £ 107.3 | £ 63.3 | 69.5% | 69.5% | $ 148.6 |
| Asia Pacific | £ 46.0 | £ 25.6 | 79.8% | 89.7% | $ 63.7 |
| Americas | £ 34.5 | £ 16.0 | 115.8% | 137.9% | $ 47.8 |
| UK | £ 31.9 | £ 13.5 | 136.1% | 136.1% | $ 44.2 |
| Total | £ 219.7 | £ 118.4 | 85.6% | 94.1% | $ 304.3 |
Gross profit in the US alone increased 113% year-over-year; compared to the second quarter of 2019, the increase was 8%, with a strong 19% in June alone.
Outlook
Subject to other unforeseen events, the company expects an annual operating profit of between £ 125million and £ 135million.
“Looking ahead, there continues to be a high degree of global macroeconomic uncertainty, as Covid-19 remains a significant issue and restrictions remain in a number of the group’s markets,” Ingham said. “Also, at this point in the recovery, it is not easy to determine whether the improved performance is still the result of pent-up supply and demand, or of a lasting trend. However, and despite the start of the year, the strength of our performance in the first half of the year, and particularly in June, further strengthened confidence in our outlook for the year.
Share price and market capitalization
PageGroup shares closed up 2.95% today at £ 592.50 (US $ 819.87), 4.13% below its 52-week high set on June 10; the company had a market capitalization of 1.89 billion pounds sterling (2.61 billion US dollars).
For more information on PageGroup, see Daily Staffing Industry News European edition.
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