Michael Page International says it is benefiting from diversification
Michael Page International says it is benefiting from diversification.
Todays Trading Report says:
Group Q2 gross profit of 111.5m up 33.1% (29.8%*) on Q2 2009 (83.8m), sequentially 13.6m or 14.0% (13.9%*) on Q1 2010
EMEA (42% of Group) Q2 gross profit of 46.7m up 22.4% (25.0%*) on Q2 2009 (38.2m), sequentially 2.1m or 4.8% (7.7%*) on Q1 2010
UK (29% of Group) Q2 gross profit of 32.2m up 14.4% on Q2 2009 (28.1m), sequentially 3.2m or 11.0% on Q1 2010
Asia Pacific (16% of Group) Q2 gross profit of 18.0m up 85.2% (63.8%*) on Q2 2009 (9.7m), sequentially 4.8m or 37.1% (32.4%*) on Q1 2010
Americas (13% of Group) Q2 gross profit of 14.6m up 87.9% (65.6%*) on Q2 2009 (7.8m), sequentially 3.4m or 30.7% (23.8%*) on Q1 2010
Permanent (79% of Group) Q2 gross profit of 87.9m up 51.5% (47.0%*) on Q2 2009 (58.0m), sequentially 12.9m or 17.3% (16.9%*) on Q1 2010
Temporary (21% of Group) Q2 gross profit of 23.6m down 8.3% (-9.1%*) on Q2 2009 (25.8m), sequentially 0.7m or 3.2% (4.0%*) on Q1 2010
Group headcount at 30 June 2010 of 3,860, up 201 (5.5%) on 31 March 2010
During H1 the Group repurchased 15m shares into the Employee Benefit Trust at a cost of 61.8m
Net cash at 30 June 2010 approximately 63m
* Denotes where overseas results denominated in foreign currencies have been translated at constant rates of exchange for constant currency illustrative purposes.
Commenting on the second quarter trading, Steve Ingham, Chief Executive said: "We achieved a strong performance in the second quarter, with gross profit of 111.5m, up 14% sequentially on the first quarter of 2010 and 33% higher than the second quarter of 2009. The improvement in our performance has been driven by greater permanent recruitment activity as confidence levels improve, leading to higher rates of job churn.
"We are benefiting from our investment in diversifying the Group internationally, with over 70% of our gross profit now derived from areas outside of the UK and over 40% of our fee earners in the faster developing recruitment markets. We have strong market-leading positions in specialist recruitment in Asia and Latin America and are particularly optimistic about our prospects in these regions where we will continue to invest in additional headcount. In the UK, Continental Europe and North America we have experienced job flow improvements in virtually all markets.
"It is the nature of our business that visibility is short, and the general level of business confidence and economic activity may be threatened by fiscal consolidation in the UK and Europe, however, we are quick to react to changing market conditions. Having maintained our presence in all our markets, the strength of our geographic discipline and industry sector diversification, combined with our operational gearing means that our profitability is much improved over last year."