PageGroup (LON:PAGE) Posts Quarterly Earnings Results

PageGroup (LON:PAGE) issued its quarterly earnings results on Thursday. The company reported GBX 1.20 EPS for the quarter, Digital Look Earnings reports. PageGroup had a return on equity of 4.18% and a net margin of 0.56%.

Here are the key takeaways from PageGroup’s conference call:

• Operating profit rose to £9.7 million in H1 from £2.1 million a year earlier, despite group gross profit declining 2.4% in constant currency. Productivity, measured by gross profit per fee earner, increased 3.7% to its highest level since 2022.
• Performance was mixed geographically, with continued growth in Asia-Pacific and the Americas and a return to growth in Southern Europe during Q2, while France, Northern Europe, and the U.K. remained challenging. Around 50% of the group was in growth during the first half.
• Cost-control initiatives have delivered approximately £40 million of annualized savings, excluding fee-earner reductions. A further £2.5 million of net one-off restructuring costs in H1 is expected to generate equivalent annualized savings from 2027.
• Cash flow was pressured by a £33.9 million increase in net working capital, dividends, lease payments, and other outflows, leaving the group with £7.2 million of net debt at June-end. The board set the interim dividend at £0.0146 per share while maintaining a cautious approach to future distributions.
• Page Executive delivered record H1 growth of 8%, while Enterprise Solutions outsourcing grew 22%; management also highlighted ongoing AI adoption as a potential source of consultant productivity gains. The company reiterated full-year operating profit guidance in line with consensus at £28 million.

PageGroup Price Performance

Shares of LON:PAGE traded down GBX 0.70 during trading on Thursday, reaching GBX 187.10. The company had a trading volume of 1,339,865 shares, compared to its average volume of 7,488,247. The company has a fifty day moving average of GBX 138.12 and a two-hundred day moving average of GBX 150.93. The company has a current ratio of 1.47, a quick ratio of 1.77 and a debt-to-equity ratio of 61.62. The stock has a market capitalization of £582.56 million, a P/E ratio of 64.52, a price-to-earnings-growth ratio of 0.98 and a beta of 0.93. PageGroup has a 12 month low of GBX 101.24 and a 12 month high of GBX 282.20.

Analysts Set New Price Targets

PAGE has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a GBX 260 target price on shares of PageGroup in a research note on Wednesday, April 15th. Jefferies Financial Group reissued a “hold” rating and set a GBX 125 target price on shares of PageGroup in a report on Thursday, May 21st. Finally, Citigroup reduced their price target on PageGroup from GBX 440 to GBX 300 and set a “buy” rating for the company in a research report on Wednesday, April 15th. Two research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of GBX 228.33.

PageGroup Company Profile

PageGroup Changes Lives…

That’s our PageGroup Purpose, delivered by c.7,300 people in 36 countries, with a gross profit of over £842.6m in 2024. Our four core  PageGroup brands are supported by specialised recruitment teams operating across 25 disciplines.

As a FTSE 250 company, a lot has changed since we were set up in 1976 and the Group continues to grow and evolve. What hasn’t changed is our commitment to the success of our clients and candidates, and our own people.

PageGroup’s strategy is geared for the long-term.