Advertisement

Michael Page says 'another challenging quarter' ahead

Recruitment firm Michael Page International (MPI) said on Tuesday that 'tough economic conditions and weak market confidence' was partly to blame for a slump in profits in the first quarter.

Recruitment firm Michael Page International (MPI) said on Tuesday that 'tough economic conditions and weak market confidence' was partly to blame for a slump in profits in the first quarter.

Gross profits totalled £126.8m in the first three months of the year, 0.2% higher than the fourth quarter of 2012 but down 6.7% year-on-year.

Advertisement - Article continues below

A sharp decline (-15.1%) in the Europe, Middle East and Africa (EMEA) region, which accounts for two-thirds of group profit, offset a relatively resilient performance elsewhere.

MPI said that its businesses in France and Germany, where it operates mainly in permanent recruitment, experienced "another challenging quarter", with profits down 17% and 27% at constant currency, respectively, against strong comparable.

Across the group, permanent recruitment accounts for 77% of total profits, while temporary makes up 23%. These two divisions saw gross profits fall by 7.6% and 3.6% at constant currency, respectively, on last year.

"Activity levels remained strong in the quarter, but with difficult trading conditions continuing in several markets, we anticipate Q2 to be a challenging quarter," the firm said.

MPI said it is continuing to invest in its "key growth targets" of China, South-East Asia, Latin America, Germany and North America in an attempt to "target our long-term growth and profit opportunities".

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

OBR: UK house prices could fall by 12% next year
House prices

OBR: UK house prices could fall by 12% next year

The Office for Budget Responsibility says UK house prices could fall by as much as 12% next year. John Stepek looks at how likely that is.
14 Jul 2020
Three ideas for Lloyds Bank's new boss
UK stockmarkets

Three ideas for Lloyds Bank's new boss

The Black Horse needs whipping into shape. A change at the top provides a great opportunity, says Matthew Lynn.
12 Jul 2020
We’re spending more than at any time since World War II – how will we pay it back?
UK Economy

We’re spending more than at any time since World War II – how will we pay it back?

With the UK spending vast sums on stimulus measures, this year’s budget deficit will be greater than at any time since World War II. The big question,…
14 Jul 2020