Michael Page Sees Continued Growth As Confidence Improves

9th Jul 2010 07:21

By Anita Likus Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The U.K.'s second largest recruiter Michael Page International PLC (MPI.LN) Friday reported continued strong earnings in the second quarter boosted by more activity in permanent recruitment as confidence levels improve. Chief Executive Steve Ingham said, "we have strong market-leading positions in specialist recruitment in Asia and Latin America and are particularly optimistic about our prospects in these regions where we will continue to invest in additional headcount. In the UK, Continental Europe and North America we have experienced job flow improvements in virtually all markets." The company reported a 33.1% rise in second-quarter gross profit to GBP111.5 million year on year or 14% sequential growth from the first quarter. Permanent recruitment, which accounts for 79% of group gross profit, rose 51.5% year on year, or 17.3% sequentially while temporary recruitment fell 8.3% or 3.2% on the first quarter. As a result of an improvement in Michael Page's business the company started to increase group headcount and at June 30 headcount was 3,860, up 201 on March 31. After two years of struggling, as the credit crunch and subsequent recession caused companies to contract and reduce staff or stop hiring, recruiters, including Michael Page and Hays PLC (HAS.LN), which returned to growth Thursday, are finally seeing some positive signs in the market. Still Michael Page cautioned that economic activity may be threatened by fiscal consolidation in the U.K. and Europe and that visibility for recruiters remains low. Michael Page shares closed Thursday at 386 pence valuing the company at GBP1.14 billion. They have fallen 9% in the past three months on fears that government cuts will hit consumer confidence and stop people from changing jobs. -By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; [email protected] (END) Dow Jones Newswires July 09, 2010 02:21 ET (06:21 GMT)