PageGroup Q4 Earnings Call Highlights

Core Insights - PageGroup reported a decline in gross profit for Q4 and the full year of 2025, highlighting uneven regional trading conditions and cautious client behavior [8] Regional Performance - Asia-Pacific (16% of group): Q4 gross profit increased by 6.4%, with Asia growing by 7% and Southeast Asia up by 8%. Greater China grew by 5%, with Mainland China up by 10% [1] - Americas (19% of group, excluding Argentina): Gross profit grew by 2.4% in Q4, with the U.S. rising by 5% and Brazil up by 6%. Mexico declined by 17% due to tariff uncertainty, while Colombia rose by 22% [2] - Europe, Middle East and Africa (53% of group): Gross profit declined by 8.9% year over year in Q4, with France falling by 17% and Germany declining by 5%. Spain rose by 10% [3] Management Commentary - Management noted mixed regional trends, with ongoing growth in the U.S. and Asia, while continental Europe and the U.K. showed weakness. The U.S. achieved its fifth consecutive quarter of growth [4] - The conversion of offers to placements was identified as a significant challenge, with clients tightening budgets and becoming more risk-averse [7][10] Staffing and Productivity - Fee earner headcount fell by 75 (1.5% reduction), primarily in Europe, ending the period with 4,968 fee earners [5] - Despite a challenging environment, productivity improved, with gross profit per fee earner increasing by 3% compared to Q4 2024 [6] Financial Outlook - PageGroup's net cash was approximately GBP 31 million at the end of December, with expectations of an outflow of GBP 20 million to GBP 25 million in January related to bonuses [11][12] - The company expects full-year operating profit for 2025 to be broadly in line with current market consensus of GBP 21.1 million, focusing on cost control and strategic resource allocation [14]