Shares in PageGroup increased by almost 15% after it reiterated its full-year expectations.

In its latest trading update, the FTSE 250 recruitment firm said it had recorded a "good Q2 performance", despite a high degree of uncertainty.

In this period, the firm’s group gross profit declined by 0.2% in constant currencies, which is an improvement on a decline of 4.9% in Q1.

However, it added that market conditions remained mixed across the group, with "challenging but stable" conditions in the UK, France and Northern Europe.

In Europe, the Middle East and Africa, PageGroup's gross profit declined by 4.8% to £100.1m, with mixed results across the region, as temporary recruitment dropped by 2%, and permanent recruitment fell by 6%.

In the UK, gross profit dropped by 5.3% against 2025 in Q2 to £21.8m, with an improvement on the decline of 11.4% recorded in Q1.

CEO at PageGroup, Nicholas Kirk, stated that the progress it is making in productivity, technological innovation, operational efficiency and strategic execution demonstrates that its "strategy is working" and positions it well for future growth.

He concluded: "We have a flexible cost base through our fee earner headcount, which adjusts naturally to market conditions. Alongside this, we continue to control the cost base tightly and have undertaken various programmes since the launch of our new strategy to manage it in light of the tougher market conditions. These programmes included managing our support headcount, moving our SSCs to more cost-effective locations, closing offices and reducing management layers.

"Collectively, excluding savings due to the reduction in fee earner headcount, these initiatives have delivered annualised savings of c. £40m. This cost base control has continued in 2026, incurring some one-off costs which we will cover in more detail at the Interims.

"Whilst we have seen improvement and signs of a normalisation in trading in a number of our markets, there remains a high degree of uncertainty in the outlook for the rest of the year. We have a highly diversified and adaptable business model, a strong balance sheet and a cost base that is under continuous review. We currently expect 2026 operating profit to be in line with company compiled consensus of c. £28m."

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