BUSINESS LIVE: PageGroup sees decline in earnings due to hiring slowdown
By Live Commentary
Updated: 07:53 BST, 7 August 2023
The FTSE 100 is set to open at 8am. Today, companies such as PageGroup, Card Factory, LSL Property Services, Carr’s Group, and Clarkson will be sharing their reports and trading updates. Read the Monday 7th August Business Live blog below.
If you are using our app or a third-party site, click here to read Business Live.
LSL Property Services issues profit warning
LSL Property Services has announced that its annual profit forecast will be significantly lower than previously expected. The British mortgage market has experienced subdued activity, resulting in this decline.
This is due to the housing sector facing a slowdown caused by high mortgage costs and strict credit conditions, leading to a decrease in demand.
LSL Property Services provides services to mortgage intermediaries and estate agent franchisees. They anticipate lower levels of purchase and remortgaging activity in the second half of the year compared to their previous forecasts.
Vinyl revival keeps sales booming
Despite the rise in popularity of streaming services like Spotify, vinyl record sales continue to soar. The British Phonographic Industry (BPI) has reported an increase of 12% in LP sales, with over 2.7 million sold in the first six months of 2023, compared to the previous year.
This vinyl revival has shown continuous growth, with record sales in 2022 reaching the highest volume since 1990, totaling 5.5 million.
PageGroup earnings slump on hiring slowdown
PageGroup, the recruitment firm, has experienced a 44.6% decline in profits, amounting to £63.9 million, in the first half of the year. This decrease is attributed to a global slowdown in hiring. However, the company has maintained its full-year forecasts and has raised its interim dividend to 5.13p. Additionally, they have announced a special dividend of 15.87p.
Despite the uncertainty in the global macro-economic and political landscape, PageGroup remains optimistic about the future. They continue to witness candidate shortages and a steady flow of vacancies, along with favorable fee rates. The company also emphasizes the benefits of their investments in innovation and technology, particularly with Customer Connect and Page Insights. These tools enhance productivity, improve customer experience, and provide real-time data for informed business decisions.
PageGroup highlights their highly diversified and adaptable business model, their strong balance sheet, and their ability to quickly adjust their cost base in response to market conditions. With these fundamental strengths, they believe they will continue to perform well despite the prevailing uncertainty.
Share or comment on this article:
Please note that some links may be affiliate links. If you click on them, we may earn a small commission, which helps us fund This Is Money and keep it free to use. We do not write articles solely to promote products. Our editorial independence is not influenced by any commercial relationship.
POPULAR MONEY SECTIONS:
– Take me to…
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
