The FTSE 250 firm had a topsy-turvy 2018, climbing from an open of £4.60 to an all-time high of £6.24 in late-August, only for an autumn/winter tumble to leave it back at £4.50. It has done little of note since the New Year began, with a lateral couple of months keeping PageGroup PLC (LON:PAGE) at a current trading price of £4.54.
Keeping the company at its present lows was mid-January’s Q4 update, one that managed to upset investors despite it being PageGroup’s best ever. Fourth quarter gross profit was up 15.4%, with especially strong performances in its Asia Pacific and Americas divisions, which saw 22% and 29.2% surges respectively. For the year gross profit rose 15.9% on a constant currency basis.
However, investors were more concerned with the situation in the UK. Though it only comprises 17% of the company’s business, the market was disturbed by the region’s 1.7% decline in full year gross profit, as Brexit uncertainty hit the UK jobs market. There was also a sharp drop off in growth in China, from 31% in Q3 to 12% in Q4 due to the impact of the trade war.
As for Wednesday’s full year statement, PageGroup is expecting operating profit to be in line with forecasts of £141.8 million. Some firmer guidance for 2019, especially for Britain post-Brexit and the trade-troubled China, will likely be what dictates the reaction from investors.
PageGroup PLC has a consensus rating of ‘Hold’ alongside an average target price of £5.79.
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