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Michael Page FULL YEAR AND Q4 2011 TRADING UPDATE

Michael Page FULL YEAR AND Q4 2011 TRADING UPDATE

FULL YEAR HIGHLIGHTS

&middot Full year 2011 gross profit of &pound553.7m, an increase of &pound111.5m or 25.2% (23.1%*) on 2010

&middot Full year 2011 pre tax profit from trading activities is expected to be in the region of &pound85.0m (2010: &pound72.2m**)

&middot Continued organic investment 17 new offices and 3 new country openings during 2011. Now have 160 offices in 32 countries

&middot 5.7m shares (1.8% of share capital) purchased and cancelled during the year, returning &pound30.3m to shareholders

&middot Strong balance sheet with net cash at 31 December 2011 in the region of &pound60m (31 December 2010: &pound80.5m)

Q4 HIGHLIGHTS

&middot Q4 gross profit of &pound135.9m up 13.4% (13.3%*) on Q4 2010

&middot EMEA (45% of Group) Q4 gross profit of &pound60.9m up 15.3% (15.1%*) on Q4 2010

&middot UK (23% of Group) Q4 gross profit of &pound30.9m up 0.6% on Q4 2010

&middot Asia Pacific (19% of Group) Q4 gross profit of &pound25.6m up 23.3% (19.4%*) on Q4 2010

&middot Americas (13% of Group) Q4 gross profit of &pound18.5m up 18.6% (23.6%*) on Q4 2010

&middot Permanent (78% of Group) Q4 gross profit of &pound106.4m up 14.3% (14.4%*) on Q4 2010

&middot Temporary (22% of Group) Q4 gross profit of &pound29.5m up 10.0% (9.2%*) on Q4 2010

&middot Headcount reduced in Q4 by 64 to 5,286 at 31 December 2011 (17.5% on 31 December 2010)

* Denotes where overseas results denominated in foreign currencies have been translated at constant rates of exchange for constant currency illustrative purposes.

** Before non-recurring items in 2010 (VAT refund of &pound17.1m and related interest of &pound11.3m)

Commenting, Steve Ingham, Chief Executive said:

"In 2011, we grew our full year gross profits by 25% to a record &pound553.7m. We expect our pre tax profit from trading activities to be in the region of &pound85m, approximately 18% up on 2010. We continue to benefit from our geographic and discipline diversification, achieving growth during the year in all reported disciplines and geographic regions. Our financial position is strong, with approximately &pound60m of cash at the end of the year.

"The uncertainty caused by the concerns surrounding the Eurozone and the lowering of worldwide GDP forecasts during the fourth quarter impacted significantly on our clients' recruitment plans, with many hiring decisions being deferred or cancelled. As a consequence, year-on-year growth in the fourth quarter gross profit slowed to 13%.

"As in previous economic slowdowns, we will react according to the prevailing economic climate in each market in which we operate and manage each business appropriately, adjusting headcount to reflect market conditions, while continuing to invest where we have opportunities for long-term growth. Group headcount increased by over 850 people in the first three quarters of 2011, as we invested in growth opportunities through geographic and discipline expansion. Reflecting the more uncertain outlook, in the fourth quarter, our headcount reduced by 64 people, as a result of not replacing those who left through natural attrition.

"While mindful and cautious of the current macro economic outlook, we are in a position to continue our geographic expansion, as there remain many long-term growth opportunities in our newer territories, particularly Latin America and Asia. During the course of 2012, we currently expect new country openings in Columbia, Morocco and Taiwan, as well as several new office openings in existing countries."

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