Michael Page International plc Issues Q2 and first half 2011 Trading Update
Michael Page International plc has published its Q2 and first half 2011 trading update
· Group Q2 gross profit of £147.8m up 32.4% (29.6%*) on the £111.7m in Q2 2010
· Group H1 gross profit of £275.1m up 31.3% (29.5%*) on the £209.6m in H1 2010
· EMEA (43% of Group) Q2 gross profit of £64.1m up 37.2% (31.8%*) against the £46.7m in Q2 2010
· UK (23% of Group) Q2 gross profit of £34.3m up 6.4% against £32.2m in Q2 2010
· Asia Pacific (19% of Group) Q2 gross profit of £27.2m up 50.8% (45.8%*) against the £18.0m in Q2 2010
· Americas (15% of Group) Q2 gross profit of £22.2m up 51.3% (53.7%*) against the £14.7m in Q2 2010
· Q2 Permanent gross profit (80% of Group) of £118.6m up 34.8% (32.1%*) against the £88.0m in Q2 2010
· Q2 Temporary gross profit (20% of Group) of £29.2m up 23.5% (20.3%*) against the £23.7m in Q2 2010
· Group headcount at 30 June 2011 of 5,121 up 269 (5.5%) on 31 March 2011
· 5.7m shares (1.8% of share capital) purchased and cancelled during the second quarter at a cost of £30.3m
· £18.8m final dividend for 2010 (6.12p per share) paid in June 2011
· Net cash at 30 June 2011 in the region of £25m (£73.9m at 31 March 2011)
* 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 continued to perform well in the second quarter of 2011, with the year-on-year increase in gross profit rising to 32%. The growth continues to be driven largely by permanent placements, where gross profit was up 35%, and we also recorded an improvement in gross profit from temporary placements, which are now growing at 24%.
"We continue to achieve very strong growth from Latin America (68%*) and Asia (72%*) and combined they now represent over 20% of the Group's gross profit with 28 offices, across 11 countries and over 1,000 staff. I would like to make a special mention of our business in Tokyo, which having been impacted by the recent earthquake and tsunami, has proved to be remarkably resilient, achieving an all-time gross profit record in June.
"We have further invested in our business platform during the second quarter, with Group headcount increasing by 269 (5.5%) to 5,121 and new office openings in Houston, USA and Pudong in Shanghai, China.
"We anticipate that in the short-term, our UK business will maintain modest growth. However, our outlook for Asia and Latin America remains strong and in Europe continues to improve. While our second quarter gross profit was ahead of our expectations, we continue to invest significantly in developing our business both by geography and discipline and, as a consequence, anticipate that our full year profits will be broadly in line with current market estimates*."
*Reuters: £111.7m operating profit