Visibility remains fuzzy at Michael Page

published 11 April 2012

Recruitment firm Michael Page's business in the UK continues to be depressed by the weakness of the banking sector, but the group put in a strong first quarter showing in Germany and France.

Gross profit in the first quarter of 2012 was up 6.9%, or 7.7% on a constant currency basis, to £136.0m from £127.3m in 2011.

The UK, which accounts for 23% of revenue, saw gross profit slide 3.7% to £30.6m from £31.7m but Europe, Middle East and Africa (EMEA), the largest part of the business (44% of revenues, saw gross profit rise 7.4% (10.1% on a constant currency basis) to £60.3m from £56.2m the year before.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The Asia Pacific region's (19% of group revenues) gross profit of £26.3m was up 23.0% (17.8%) on the £21.4m in the first quarter of 2011.

In the Americas (14%), gross profit of £18.8m was up 4.6% (8.2%*) on the £18.0m the year before.

Net cash at the end of March was in the region of £63m, up from £58.2m at the end of 2011.

"Markets continue to be weak and visibility remains limited, however, the group remains financially strong, with net cash in the region of £63m. Operationally, our successful strategy of diversification, both by geography and business discipline, positions us well to benefit from our ongoing investment in those markets which we expect to deliver growth over the long-term and our strong competitive position in more mature markets," said Michael Page's Chief Executive, Steve Ingham.