Proactive Investors -
- Blue-chip index 31 points lower at 7,964
- Inchcape exits UK retail ops
- Gold falls from ATH
Recruitment firm Pagegroup shares plummet
FTSE 250 member and one of Britain’s largest recruitment firms PageGroup PLC (LON:PAGE)’s shares dipped around 5% on Monday following a first-quarter trading update.
As expected, Pagegroup saw a year-on-year decline in operating profits across all major jurisdictions.
Group gross profit of £219.7 million represented a 12.8% decline versus the first quarter in 2023, with the UK market seeing the largest fall.
“While we anticipate a period of low confidence levels, based on our current outlook, we intend to hold fee earner headcount broadly at existing levels to ensure we are well placed to take advantage of opportunities as sentiment and confidence improve,” said chief executive Nicholas Kirk.
“We have a highly diversified and adaptable business model, a strong balance sheet and our cost base is under continuous review and can be adjusted rapidly to match market conditions.”
Shares were swapping for 461.6p at the time of writing, while the FTSE 100 was 31 points lower at 7,964.
Ashmore Group’s assets under management decline
Ashmore Group Plc (LON:ASHM)’s assets under management (AUM) fell by $2.1 billion (£1.7 billion) in the third quarter of its financial year, marking a 4% sequential decrease.
In a trading update, the FTSE 250-listed emerging markets asset manager stated: “Against a backdrop of more subdued markets following the strong end to 2023, net outflows were predominantly driven by institutional clients continuing to reduce risk."
Ashmore noted that hard currency markets performed relatively well over the period, driven by spread compression in high-yield markets, while equities also delivered positive returns.
Chief executive Mark Coombs added: "Emerging Markets delivered a mixed performance over the quarter as stronger than expected economic data pushed back expectations of rate cuts by the US Fed.
"Looking beyond the short-term, macroeconomic stability in emerging countries underpins superior GDP growth compared with the developed world, and many central banks continue to cut rates in response to lower inflation."
Shares were off 3.2% at 181.9p at the time of writing.
The morning so far
The FTSE 100 index fell by half a percentage point when markets opened on Monday, bringing the tantalisingly close all-time high nearly brushed on Friday further out of grasp.
Mining and natural resources stocks were among the biggest fallers due to a scaling back on Brent Crude and spot gold prices.
Fresnillo PLC (LON:FRES) was the biggest faller in the opening hour, though Shell (LON:RDSa) and BP (LON:BP) were not far behind.
Chemicals group Croda and Bill Ackman’s Pershing Square (NYSE:SQ) were also seen lower.
easyJet plc (LON:EZJ) was among the top FTSE 100 risers in early trades, as were insurance firm Beazley (LON:BEZG) and manufacturing group Melrose.
Elsewhere in company news, Inchcape PLC (LON:INCH) has announced the disposal of its UK Retail operations for a cash consideration of approximately £346 million.
US rival Group 1 Automotive is on the other side of the deal table. FTSE 250-listed Inchscape shares rallied over 3% on the news,
Andrew Cosslett is stepping down as chair of FTSE 100-listed B&Q owner Kingfisher (LON:KGF) plc after seven years in the role, having decided not to stand for reelection at the company’s annual general meeting on 20 June. Shares held steady at 248.8p.
FTSE 250-listed recruitment firm Pagegroup PLC (LON:PAGE) was sent over 5% lower after posting a 12.8% year-on-year revenue decline in a trading update.
There are no macroeconomic announcements in store for the UK today, though later we will have retail sales data from the US.
The blue-chip index was last seen 34 points lower at 7,960.