Recruitment group Michael Page sees profits fall by nearly a third
7 Apr 09
Michael Page, the international recruitment group, yesterday reported gross profits for the first quarter of 2009 down 32 per cent, from £140m to £95m. The group is one of the largest accountancy recruitment consultancies
The hit to profits for the group was even more marked in its UK operations, where gross profits fell by 38.7 per cent to to £28.9m, and in accountancy and finance. In this sector, which represents 16 per cent of Michael Page’s worldwide activities, gross profits fell by 37 per cent.
Chief executive Steve Ingham said: “As anticipated, the group generated a higher gross profit in March than in either of the first two months of the quarter, resulting in a first quarter operating profit in the region of £3m. However, market conditions continued to weaken during the first quarter of 2009, with the impact of the financial crisis now evident in virtually every market and discipline in which we operate, albeit to varying degrees.
“We continue to reduce our cost base to reflect the lower levels of activity. While we anticipate that our overall cost base and headcount will reduce in the second quarter, in a few markets and disciplines which were the first to slow, we are not planning further headcount reductions.”
He added: “We remain confident that, with our strong balance sheet, leading brand and experienced management team, we can maintain our market presence and continue to gain market share.”
Mr Ingham said that while permanent recruitment was being affected more than temporary placements, it would probably recover faster when economic conditions improve.