Europe crisis pressures Michael Page profit

Recruitment company Michael Page said fourth quarter gross profit slowed to 13% as uncertainty surrounding the euro zone caused many hiring decisions to be delayed or cancelled.

The recruiter reported a 13.4% rise in fourth-quarter gross profit to £135.9m from the same period a year earlier. Asia Pacific saw strong profit growth in the fourth quarter, with gross profit up 23.3%. Full year gross profit increased 25.2% to £553.7m.

"The uncertainty caused by the concerns surrounding the euro zone and the lowering of worldwide GDP forecasts during the fourth quarter impacted significantly on our clients' recruitment plans, with many hiring decisions being deferred or cancelled. As a consequence, year-on-year growth in the fourth quarter gross profit slowed to 13%," said chief executive Steve Ingham.

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Full year 2011 pre-tax profit from trading activities is expected to be in the region of £85m, up 18% from last year.

Ingham said he sees long-term growth opportunities in Latin America and Asia and expects to open new offices in Columbia, Morocco and Taiwan.

"We continue to benefit from our geographic and discipline diversification, achieving growth during the year in all reported disciplines and geographic regions. Our financial position is strong, with approximately £60m of cash at the end of the year," he added.

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