PageGroup Reports Sharp Profit Decline in Challenging 2024
Why we think this is very bad
PageGroup's 2024 results reveal a concerning financial performance. Operating profit plummeted by 55.9% to £52.4m, while basic earnings per share fell by 62.7% to 9.1p. Revenue and gross profit also declined significantly, by 13.5% and 16.3% respectively. The conversion rate, a key indicator of operational efficiency, dropped from 11.8% to 6.2%. Despite a slight improvement in cash position, the overall financial picture is grim. The company faces ongoing challenges across all regions, with market conditions remaining tough and macro-economic uncertainty continuing to impact client and candidate confidence. The slower end to 2024, which has persisted into early 2025, further dampens the outlook. These factors collectively point to a very challenging period for PageGroup, with no immediate signs of improvement.
Key Points
- Operating profit down 55.9% to £52.4m
- Basic earnings per share decreased 62.7% to 9.1p
- Revenue declined 13.5% to £1,738.9m
- Gross profit fell 16.3% to £842.6m
- Conversion rate dropped from 11.8% to 6.2%
- Cash position improved slightly to £95.3m
- Final dividend proposed at 11.75p, up 4.5%
- Challenging market conditions reported across all regions
- Ongoing macro-economic uncertainty affecting client and candidate confidence
- Slower trading at the end of 2024 continued into early 2025
Summary
PageGroup's full year results for 2024 reveal a significant decline in financial performance. The company reported a 55.9% decrease in operating profit to £52.4m and a 62.7% drop in basic earnings per share to 9.1p. Revenue fell by 13.5% to £1,738.9m, while gross profit decreased by 16.3% to £842.6m. The conversion rate declined from 11.8% to 6.2%, indicating reduced operational efficiency. Despite these challenges, the company maintained a strong cash position of £95.3m. The outlook remains uncertain, with PageGroup noting ongoing macro-economic challenges affecting client and candidate confidence across all regions. The company has proposed a final dividend of 11.75p, up 4.5% from the previous year, reflecting some confidence in their long-term strategy despite current headwinds. Recent broker targets from Jefferies (Hold, 440.00p) and Deutsche (Buy, 550.00p) suggest a mixed outlook for the stock.