RECRUITER PageGroup has lowered its profit forecast as rocketing inflation and the prospect of a lengthy recession have seen firms become cautious about hiring plans.

The company told investors it witnessed a slowdown towards the end of 2022.

It said it is therefore due to post an operating profit of £195 million for last year, downgrading its previous projection of £204 million.

PageGroup said the weakness at the end of the period meant gross profit per fee, its preferred measure, slipped by 12% in the fourth quarter of 2022 compared with the same period a year earlier.

Nicholas Kirk, chief executive officer of the firm, said: "As the quarter progressed, conditions became increasingly challenging and we saw a reduction in both candidate and client confidence, leading to further delays in decision-making."

Total revenues grew by 22.6% to £1.07 billion in 2022 compared with the previous year, with 7.9% growth in final quarter.

PA

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