Michael Page returns to growth as Americas and Asia offset Europe
Michael Page recorded its first quarter of gross-profit growth since late 2022, with third-quarter gross profit reaching 190.5 million pounds. The Americas and Asia Pacific expanded while Britain, Germany and France continued to decline. The recruiter maintained its annual operating-profit outlook at around 29 million pounds and ended the quarter with net cash after net debt in the preceding period.
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Gross profit rises for the first time since late 2022
Michael Page, the British recruitment company, returned to gross-profit growth in the third quarter after declines dating to the final quarter of 2022. Its 13 October trading update put group gross profit at 190.5 million pounds, compared with 187.8 million pounds a year earlier. Growth was 1.5 per cent at constant exchange rates and 1.4 per cent at reported rates.[1], [2]
The Americas generated 41.1 million pounds of gross profit, up 8.9 per cent at constant currencies. Asia Pacific generated 35.2 million pounds and grew 14.7 per cent. Europe, the Middle East and Africa remained the largest regional business at 92.8 million pounds, but gross profit fell 3.8 per cent. UK gross profit declined 5.5 per cent to 21.4 million pounds.[1]
US and Asian hiring grow as Germany and France contract
The United States recorded 7 per cent growth, its eighth consecutive growth quarter, with construction and manufacturing recruitment contributing to the improvement. Greater China grew 28 per cent, Japan 23 per cent and India 18 per cent. Germany fell 7 per cent and France 11 per cent; Spain grew 9 per cent. Australia declined 7 per cent. The company said most other US specialisms remained challenging.[1]
Page Executive, the group’s senior-executive recruitment business, grew 15 per cent. Permanent recruitment gross profit increased 1.1 per cent at constant currencies, compared with 2.6 per cent for temporary recruitment. Permanent and temporary recruitment accounted for a 70-to-30 gross-profit mix. In France, Northern Europe and Britain, clients’ search for flexibility kept temporary recruitment more resilient than permanent hiring.[1]
Productivity improves and net cash returns
Gross profit per fee earner increased 6 per cent. The number of fee earners fell by 63 during the quarter to 4,851, while total headcount stood at 6,604. The group finished the quarter with approximately 6 million pounds in net cash, following around 7 million pounds in net debt in the previous quarter. Management maintained its expectation that annual operating profit would match company-compiled consensus of approximately 29 million pounds.[1]
