Michael Page International PLC
04 April 2007
4 April 2007
2007 FIRST QUARTER TRADING UPDATE
Michael Page International plc, the specialist recruitment consultancy, reports
first quarter gross profits of £105.4m, an increase of 33.2% over the £79.2m
recorded in the first quarter of 2006.
In the UK, the most developed market in which the Group operates, first quarter
gross profits were £44.1m, 20.4% up on the first quarter of 2006 (£36.6m). All
specialist disciplines continued to demonstrate strong growth rates. During the
first quarter we opened an office in Leicester.
In Europe, Middle East and Africa (EMEA), first quarter gross profits were
£41.9m, 49.3% up on the first quarter of 2006 (£28.1m). In France, the largest
business representing 34% of EMEA gross profits, growth was 21%. All the
remaining countries grew at a combined rate of 70%. The new businesses we
started last year in Moscow, Dublin, Johannesburg and Dubai are ahead of plan.
During the first quarter we started a business in Luxembourg and opened our
fifth German office in Hamburg.
In Asia Pacific, first quarter gross profits were £12.2m, 24.4% up on the first
quarter of 2006 (£9.8m). In Australia we achieved growth in the first quarter
of 11% (17% in local currency) and we are confident that we will continue to see
further progress as the year continues. In Asia we achieved growth of 46% with
Hong Kong and Tokyo performing particularly well.
In the Americas, first quarter gross profits were £7.1m, 54.6% up on the first
quarter of 2006 (£4.6m). In the Americas we continue to invest in management as
well as fee earners. In North America we opened our eighth office in Hartford
and at the start of April, our ninth office in Atlanta. In Latin America, our
business in Brazil continued its strong growth and the new business in Mexico is
also ahead of plan.
During the first quarter the Group repurchased and cancelled 3.0m shares at an
average price per share of 491.2p. Also during the first quarter 2.2m new shares
were issued following the exercise of share options by employees.
Commenting on the first quarter trading, Steve Ingham, Chief Executive said:
"This has been an outstanding start to the year with strong growth from all
regions and in constant currencies the Group's gross profits grew by 37%.
"We have continued our strategy of organic growth opening in Luxembourg and in
existing countries by opening new offices and rolling out disciplines. As
envisaged we increased our headcount as many teams around the world reached
capacity and reacted by adding new fee earners. At the end of March, with EMEA
well ahead of plan, we have approximately 4,100 staff.
"In all countries, without exception, we are currently experiencing strong
levels of client activity against a backdrop of an increasingly common theme of
a shortage of good quality candidates. Through the combination of our website,
our biggest source of candidates, an internationally respected brand and a
global database of candidates, we believe we can leverage our competitive
advantage. As a result the outlook for Michael Page continues to be very
encouraging."
Enquiries:
Michael Page International plc
Steve Ingham Chief Executive 01932 264144
Stephen Puckett Finance Director 01932 264144
Financial Dynamics
Richard Mountain/Susanne Walker 0207 269 7291
This information is provided by RNS
The company news service from the London Stock Exchange
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