No Brexit exodus from London, Page Group states because it chalks up record profit

Recruiter Page Group enjoyed record profit in 2017, boosted by strong worldwide operations, despite concerns about Brexit dragging lower their United kingdom business.

The London-listed recruitment group enjoyed a 14.6pc increase in gross profits this past year, reaching £711.6m, mostly driven by development in continental Europe. But gross profit for the similar period within the United kingdom declined 3.8pc to £140.8m, the organization stated inside a buying and selling update on Wednesday.

Gross profit within the United kingdom contracted 2.8pc within the 4th quarter nevertheless this was an step up from the 7.6pc fall it recorded within the third quarter this past year.

Steve Ingham, leader, stated: “We’re not speaking about huge volumes here. We’re most likely speaking about a couple of from the multinational clients that, possibly, really are a bit worried about how Brexit lands – what it really method for them when it comes to immigration [and] trade deals.”

He stated that giant multinational companies for example exporters or manufacturers might be focused on making critical hires and candidates might be unwilling to move jobs during a duration of uncertainty.

Mr Ingham added that while there might have been concerns that Brexit will make recruitment progressively harder, the exact opposite was true.

“Things aren’t getting worse,” he stated. “In 2016 i was minus 3.5pc, in 2017 i was minus 3.8pc, so we’re roughly travelling at between 3-4 percent lower within the United kingdom, which isn’t a tragedy, and i believe that reassures them that we’re possibly flat when it comes to how we’re travelling, instead of it getting worse.”

Analysts at ABN Amro stated: “The United kingdom only represents 20pc of group gross profit… which means the cruel market conditions [there] continue to possess a smaller amount of an effect around the group overall.”

Despite concerns that financial firms could be moving operations en masse over the funnel with other to metropolitan areas for example Frankfurt and Paris, Mr Ingham stated which was not really a concern for that firm.  

“There isn’t any evidence presently that, on the wholesale level, any information mill literally going to get their business from London and move it into Frankfurt or Paris,” stated Mr Ingham.

Financial services, which was once a bigger area of the business, now make up 7pc from the group globally and 4pc within the United kingdom. Rival firm Robert Walters hailed record 4th quarter profits earlier now, boosted by hiring within the City. 

Europe, the center East and Africa, which symbolized 47pc of Page Group within the twelve month, created a 22.2pc uptick in profit for that year along with a 19.7pc rise in the 4th quarter alone. Europe was the primary driver, with more powerful sentiment after elections over the region, specifically in France and Germany. The healthy manufacturing and industrial sector in Germany also helped to improve performance.

The company, that will publish its full-year results on March 7, expects its operating profit in the future in in front of consensus at approximately £115m, and within the plethora of £112m and £119m.

Page Group had internet cash of approximately £91m in the finish from the 4th quarter, after having to pay special and ordinary dividends of £52.3m in October. Shares rose 7.95pc in morning trade.

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