Shares in recruiter Pagegroup tumble as it warns on profits for second time
Recruiter Pagegroup delivered its second profit warning of 2019 today sending shares tumbling, blaming challenging trading conditions in the UK, France and China and deteriorating economic conditions in markets such as Germany.
The recruiter cut its forecast for 2019 operating profit to between £140m and £150m, down from earlier market estimates of between £156.5m and £168m.
Read more: Page Group warns of lower profits amid economic uncertainty
The company said “heightened political and macro-economic challenges seen in the quarter, together with our limited forward visibility” were the reasons for the profit downgrade.
Shares fell nearly 15 per cent this morning to 356p.
Gross profit also slowed to 2.1 per cent in the third quarter, down from 7.4 per cent at constant currency in the second quarter.
Read more: Shares in recruitment firm Pagegroup drop amid macroeconomic uncertainty despite record profits
Gross profit in the third quarter was £216.7m.
Chief executive Steve Ingham said “the majority” of Pagegroup’s regions were hit by “increased macro-economic and political uncertainty” in the third quarter.
“We saw standout performances in Germany, India, and Latin America, as well as a strong performance in the US, despite a slowing financial services market in New York. However, we saw increasingly challenging trading conditions in many of our larger markets, including Greater China, the UK and France,” he said.
Ingham said Brexit uncertainty, the impact of the US-China trade war and protests in Hong Kong were also affecting its business.