Recruiter Page Group profit slumps as hiring comes to a standstill
Recruitment firm Page Group has reported an almost 90 per cent drop in full-year profits after the pandemic prompted hiring freezes.
Page Group, which operates in 36 countries, reported pretax profits for the year ended 31 December 2020 of £15.5m, down from £144.2m the previous year.
Revenue in its EMEA business, which brings in more than half Page Group’s net fees, plunged 17.7 per cent with overall revenue falling 21.1 per cent.
The recruiter added that gross profit grew 15 per cent in Mainland China in December, similar to what its peer Hays reported earlier this year.
Recruiters have struggled with a drop in fees due to dismal market conditions and it has prompted some firms to downsize their own workforce, including Page Group which saw headcount fall by more than 1,000 people.
“The leavers were largely recent joiners who were therefore very inexperienced in recruitment, or those on performance review,” the group said.
Page Group took advantage of the furlough scheme, which saw the government pay up to 80 per cent of staff wages, while other employees took a 20 per cent pay cut.
The FTSE 250 firm said given its cash position of £166m it will repay the £3.4m income received under the furlough scheme.
In 2021 Page Group highlighted some bright spots including in the UK as the Brexit deal and recent announcements on lockdown easing “have provided a degree of clarity”.
“We remain confident in our strategy of maintaining our platform and continuing to invest carefully in headcount, as well as continuing to roll out new technology and innovation,” chief executive Steve Ingham said.