PageGroup said group gross profit fell in the fourth quarter as tough market conditions continued, and that it expects full-year operating profit to be below guidance.
The U.K. recruitment company said group gross profit fell 8.9% on a constant-currency basis to 237.3 million pounds ($302.6 million) as it saw a slower exit to the quarter with continued weakness in client and candidate confidence.
The company said customer uncertainty as well as the proximity to year-end salary reviews and bonuses made trading particularly challenging, it said.
The recruiter said gross profit from permanent recruitment–which makes up 70% of the group’s gross profit–fell 14% on a constant-currency basis to GBP165.4 million, whilst gross profit from temporary recruitment rose 5.2% on a constant-currency basis to GBP71.9 million.
The company said operating profit for 2023 is expected to be slightly below the previously-guided GBP120 million to GBP125 million range.
“We believe we will continue to perform well in these challenging markets, and we are confident in our ability to implement our new strategy driving the long-term profitability of the group,” the company said.