PageGroup report profit decline post-Brexit

PageGroup UK has suffered a post-Brexit profits slump, according to their third quarter trading update.

The group reported that profits were down by 4.7% to £37.8million, with profits in its financial services division falling 14%. 

Steve Ingham, PageGroup's Chief Executive, said confidence levels were 'fragile', and the firm remained cautious in its short-term outlook, according to This is Money.

“In the UK, confidence levels remained fragile and below levels seen earlier in the year,” he said. “With the prevailing uncertainty in the UK, the challenges in some of our other larger markets and the unpredictable nature of the current cycle, we remain cautious in our short-term outlook.”

The weak update dented investors’ confidence, with PageGroup shares down by 3.4% in morning trading.

Despite the bleak period, globally, profits rose by 1.3% to £158.6million.

The group said that the continuing weakness of the pound aided its global business, which added £45million to gross profits and £10million to its operating profits over the year.

In a response to Brexit, PageGroup reduced its UK headcount by three per cent in the first half.

This prevailing uncertainty surrounding jobs and the plummeting of the pound is causing jobseekers to look abroad for employment. Read more here.

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