Recruitment firm Michael Page reveals hit to profits after pound rallies in global economy
Recruitment firm Michael Page today admitted the strong pound has dragged down profits even though underlying revenues have been growing strongly as the global recovery accelerates.
The FTSE 250 company said turnover rose just 1.5% on a reported basis to £137.2 million in the past three months as it took a £10 million hit because of foreign-exchange “headwinds”.
Leaving aside currency differences, turnover rose 8.9% at the recruiter, which gets three-quarters of sales from outside the UK.
Revenues in Britain climbed 11%, up from 8% in the first quarter, amid “positive momentum and greater confidence both in London and the regions”.
Accountancy and finance did well, with “increasing instances of candidate shortages”. But City jobs remained “flat”.
Asia was the stand-out international performer, jumping 25%, with China soaring by a record 37%. However, Brazil fell 7% as excitement over the World Cup disrupted the jobs market. France and Germany rose modestly but southern Europe is bouncing back, with Spain and Italy up around 15%.
Chief executive Steve Ingham was upbeat about the outlook, pointing out he has increased his own staff by 175 since the start of the year.
He was echoing a similar picture to other recruiters such as Hays, Robert Walters and SThree, which have already reported improving market conditions in the past 10 days.
