(Reuters) – Global recruiter PageGroup Plc on Monday forecast a near 29% slump in its annual profit and said the challenging conditions it experienced towards the end of 2022 have continued into 2023.
PageGroup now expects annual operating profit to be in line with a company-compiled consensus of 140 million pounds ($173.9 million), way below the 196.1 million pounds it reported for fiscal year 2022.
High inflation and persistent recession worries have forced many companies to cut jobs or freeze hiring, and prefer temporary hiring over permanent roles in their bid to minimise potential risks.
Lower levels of both candidate and client confidence have resulted in delays in decision-making and candidates are being more reluctant to accept offers, CEO Nicholas Kirk said in a statement.
The FTSE midcap firm also posted a 2.4% decline in gross profit at 262.7 million pounds in constant currency terms for the three months ended March 31, mainly weighed down by performance in the Asia Pacific region.
The company, which operates in around 40 countries, said gross profit in its largest business of permanent recruitment fell 7.2% during the first quarter while hiring in temporary jobs jumped about 15%, a trend seen during economic uncertainty.
($1 = 0.8054 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; editing by Uttaresh Venkateshwaran)
