MICHAEL PAGE INTERNATIOAL PLC Half Year Results for the Period Ended 30 June 2011
MICHAEL PAGE INTERNATIONAL PLC
Half Year Results for the Period Ended 30 June 2011
Michael Page International plc ("Michael Page"), the specialist professional recruitment company, announces its unaudited half year results for the period ended 30 June 2011.
Financial summary (6 months to 30 June 2011)
Operating profit before NRI &dagger
Profit before tax before NRI
Basic earnings per share before NRI
Diluted earnings per share before NRI
Profit before tax
Basic earnings per share
Diluted earnings per share
Interim dividend per share
*Constant Exchange Rates &dagger Non-recurring items (related to VAT refund of £17.1m and related interest of £11.3m, both net of fees)
· Group gross profit up 31% (30%*) with growth in every geography
· 50% of the Group growing at over 50% year-on-year in gross profit
· 76% of gross profits generated from outside the UK
· 55% of gross profit generated from non Finance and Accounting disciplines
· Launched businesses in India, Malaysia and Qatar
· Additional space in Beijing, Hong Kong and new offices in Houston, Pudong Shanghai and Porto
· Gross profit from permanent placements growing at 35% (33%*)
· Gross profit from temporary placements growing at 20% (18%*)
· Headcount up 623 (13.9%) in first half of 2011
· Share repurchases of £30.3m during the first half of 2011
· Strong balance sheet with net cash at 30 June 2011 of £23.6m
· Interim dividend up 12.8% at 3.25p
Commenting on the results, Steve Ingham, Chief Executive of Michael Page, said:
"We delivered a strong performance in the first half of 2011 with gross profit up 31% to £275.1m. Operating profit before non-recurring items grew by 40% to £45.4m as we continue to make significant investments for the longer-term growth and prosperity of the Group.
"In the first 6 months, our banking business grew strongly. However, following the recently announced hiring freezes in the last few weeks, gross profit growth in this sector, which accounts for approximately 10% of Group gross profit, has slowed. With the exception of banking, trading in July has been broadly consistent with recent trends. While the recent turbulence in the financial markets has added an additional element of uncertainty, we expect market conditions in the UK to remain challenging, but anticipate that our UK business will maintain modest growth and continue to gain market share. In Europe, we expect to continue our progress and our outlook for Asia and Latin America remains strong.
"Over the last 10 years we have diversified significantly and altered radically the composition of the Group, entirely through organic investment and development, with over three quarters of the Group's gross profits now being generated from outside the UK. Our Latin America and Asia businesses combined now represent over 20% of the Group's gross profit, with 31 offices across 9 countries and 1,000 staff.
"We have entered and achieved a market-leading presence in relatively underdeveloped recruitment markets with numerous opportunities for further growth. In these markets, we now have approaching 50% of our fee earners and grew gross profit at over 50% in the first half of 2011. We remain mindful of the macroeconomic risks and uncertainties, however, we are continuing to invest significantly in developing our faster growing markets, as well as exploring opportunities for new openings".