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Michael page International plc has issued a trading update

Michael page International plc has issued a trading update

On 10 October 2011, in our third quarter Interim Management Statement (IMS), we reported a slowing in our gross profit growth rates to 26.5% (21.8%*) against a backdrop of increasing levels of macroeconomic uncertainty. Since our IMS in October, markets have continued to weaken as the Eurozone crisis and the lowering of GDP forecasts worldwide have reduced client and candidate confidence levels. This increased uncertainty and lower confidence is affecting most areas of our business and, as a result, our gross profit growth rates for the last two months have slowed further to 16.0% (15.5%*). As markets weaken and become more unpredictable, our short-term visibility reduces, particularly in respect of permanent placements. We now anticipate that our full year pre-tax profits for 2011 will be marginally below the bottom end of the current range of analyst forecasts (&pound86.5m to &pound114.2m).

The table below sets out the year-on-year growth rates by region for October and November combined compared to the third quarter of 2011.

 

Gross Profit Growth rates

Oct/Nov 2011

Q3 2011

% of Group

Reported

Constant

Reported

Constant

Europe, Middle East and Africa

45%

18.5%

18.0%

30.8%

23.2%

United Kingdom

22%

1.2%

1.2%

0.3%

0.3%

AsiaPacific

19%

25.6%

21.3%

44.0%

35.2%

Americas

14%

23.8%

27.9%

48.3%

46.9%

Group

100%

16.0%

15.5%

26.5%

21.8%

Permanent placements

79%

17.2%

16.9%

28.4%

23.7%

Temporary placements

21%

11.4%

10.4%

20.0%

15.0%

We continue to react and manage the business as we have in previous periods of economic slowdowns, adjusting our headcount to reflect market conditions and continuing to invest where we have opportunities for longer term growth.

Our next trading update will be our fourth quarter and full year trading update on 11 January 2012.

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