March 5 (Reuters) - British recruiter PageGroup reported a 67% fall in annual pretax profit on Thursday, hurt by prolonged weak hiring in its key European markets, and flagged that the outlook remains
UK's PageGroup cuts payout as profit tumbles on hiring slowdown
PageGroup's Financial Performance and Market Response
March 5 (Reuters) - British recruiter PageGroup slashed its final dividend after its annual profit tumbled and the company warned the outlook remained uncertain for the jobs market, sending its shares down 18% on Thursday to a near-decade low.
Market Conditions Impacting Hiring
Weak business confidence and macroeconomic uncertainties have led firms to delay new appointments, while candidates are wary of switching roles and losing job security, particularly with the growth of artificial intelligence.
CEO's Statement on Uncertainty
"Whilst the market outlook remains uncertain due to the unpredictable economic environment, we will continue to control the controllables," CEO Nicholas Kirk said in a statement.
Profit Decline and Dividend Reduction
PageGroup reported a 67% fall in annual pretax profit to 16.2 million pounds ($21.59 million), hurt by prolonged weak hiring in its key European markets.
Dividend Cut Larger Than Expected
DIVIDEND CUT LARGER THAN SOME EXPECTED
PageGroup proposed a final dividend of 3.21 pence per share for 2025, down 73% compared with 11.75 pence in the prior year.
Analyst Commentary
"This was a larger cut than we forecast, but we believe gives the company greater flexibility in future years," RBC Capital Markets analyst Karl Green said in a note.
Shares in the company dropped 18% to their lowest level since June 2016.
Broader Industry Trends
The widening conflict in the Middle East has also raised concerns about inflation and economic growth, which could weigh on recruiters in the near term.
Peer Companies' Actions
Elsewhere in the industry, peer Hays slashed its dividend by 84% and announced the departure of CEO Dirk Hahn late February. Recruiter Robert Walters will release its annual results next week.
Cost-Cutting Measures
To cope with the downturn, PageGroup cut its staff by about 7.5% last year, it said.
Headcount Reductions
"We reduced our fee earner headcount in all four quarters, primarily in Europe and the UK, in line with the tougher trading conditions seen throughout 2025," the company said.
($1 = 0.7504 pounds)
(Reporting by Nithyashree R B and Yadarisa Shabong in Bengaluru; Editing by Rashmi Aich and Elaine Hardcastle)
