Page Group profit halves amid coronavirus lockdown
Page Group’s profit almost halved as countries around the world entered lockdowns to curb the spread of coronavirus, the recruiter said today.
Gross profit sank 47.6 per cent overall, with the UK one of the worst performers, where income sank 61.5 per cent year-on-year in the three months to 30 June.
France plunged 52 per cent but recruitment activity in Germany held up comparatively well, gross profit falling just 20 per cent. Overall EMEA income dropped 43 per cent in the second quarter.
Page Group’s Latin America division saw the worst market decline of 63 per cent, while US profit sank 49 per cent.
But the recruiter said it was well-placed to survive the coronavirus downturn. It has secured a £300m coronavirus loan via the Bank of England’s Covid Corporate Finance Facility. And it has cut 21 per cent out of its costs while securing a 12-month waiver on its debts.
Now Page Group is set to gradually reopen its offices and return staff from furlough and to full pay.
CEO Steve Ingham said rather than sweeping redundancy rounds, Page Group has “chosen not to make wholesale changes and to retain our proven fee earners”.
“We know the future remains unpredictable, but we believe now is the right time to start reinvesting in our flexible and highly diversified business model,” he added. “Having weathered a particularly challenging Q2, we now look forward to driving improved activity and gross profit through the second half.
“We are clear leaders in many of our markets, with a highly experienced senior management team, which, we believe, positions us well to take advantage of all opportunities as and when they arise.”
Earlier this week the OECD warned UK unemployment could hit 15 per cent if the UK suffers a second wave of infections.
Chancellor Rishi Sunak yesterday spelled out measures to boost employment, including a £2bn scheme aimed at young people. And he will pay employers £1,000 for every member of staff they retain after furlough ends.