Group gross profit growth of 10.6% for Michael Page
There was improved growth in Americas 11.5% strong growth in North America 21% Latin America 4%, Brazil -15% an Latin America ex Brazil 30%. 53% of fee earners now on our new operating system, PRS. Fee earner to operational support staff ratio at record 77:23
Q2 GROSS PROFIT ANALYSIS
% of Group
H1 GROSS PROFIT ANALYSIS
% of Group
Commenting, Steve Ingham, chief executive officer said, "The 10.6% increase in the Group's gross profit reflects continued year-on-year growth in all four regions with the UK and Americas showing improved growth rates from Q1. Our five high potential markets of Germany, Greater China, South East Asia, the US and Latin America are now performing at a record level. EMEA, when adjusted for the effect of closing our business in Russia, grew in line with Q1. The Asia Pacific growth rate slowed in Q2, but this was due to a particularly strong Q2 2014 comparator for Greater China of 37%.
"In reported rates, Q2 gross profit was up 6.0% to £145.3m. As previously highlighted, foreign exchange movements continued in Q2 lowering our reported figure by 4.6 percentage points, equivalent to £6.2m of gross profit. This has also impacted our first half reported operating profit by £2m.
"Our fee earner to operational support staff ratio returned to its record level of 77:23 in Q2, with our ongoing focus on conversion rates and maximising productivity from the investment in 468 fee earners added in 2014. We have committed to increase our number of fee earners during the second half and will continue to add selectively in our high potential markets as well as those regions where market conditions support investment.
"Our two key initiatives outside of the operational performance of the business: the roll-out of our new operating system, PRS, and the creation of a shared service centre for Europe, have progressed well and are on target in Q2. 53% of all fee earners now operate on PRS with the most recent successful roll-outs in Switzerland, Asia and Germany.
"We are pleased with our performance in Q2 and the outlook is positive for all our regions in the second half. We remain focused on productivity and ensuring that our conversion continues to improve at a steady rate. Excluding the effects of foreign exchange movements during the second quarter, forecast to reduce full year operating profit by an additional £4m (£2m in Q1, £6m in total), the Board's expectations for the full year results remain unchanged."