In its trading update for the second quarter of 2009, Michael Page says there are “increasing signs that the rate of decline is slowing” in the UK.  

The company says “it is experiencing a degree of stabilisation in some disciplines” and that “some teams are making selective hiring decisions to increase the rate of gain in marketshare.”

Kean Marden, an analyst at Singer Capital Markets, calculates  that the company’s year on year growth rate in gross profit improved from -42% in Q1 to -39% in Q2.

Group financial highlights

Gross profit: £83.8m (2008:£152.4m) a decrease of 45%

Net fee income: £83.8m 

The company says that staff numbers across the group fell by 429 (10.4%) during the quarter.  Headcount stood at 3,705 at the end of June, 33.1% lower than 12 months earlier.

Steve Ingham, chief executive at Michael Page, told City analysts that in terms of percentages, during the past six months, the company had saved “in the late teens to 20%” of employment costs.  However, he emphasises that the majority of the headcount reductions came from natural attrition among inexperienced staff with between two and 18 months in the company.

Commenting on the second quarter trading, Ingham says: “While market conditions generally continued to weaken during the second quarter, the rate of decline in the UK, our largest country, has slowed and gross profit in the second quarter was at a level similar to that of the first quarter. We anticipate a challenging third quarter as we enter into the seasonally quieter summer period, both in Continental Europe, which was later into the downturn, and in the UK.

“We continue to adjust our headcount in response to market conditions, retaining our more experienced and stronger people. In the last 12 months we have reduced headcount by a third, largely by natural attrition, and this lower cost base has enabled us to remain profitable in the first half of 2009. We remain confident that, with our strong balance sheet, leading brand and experienced management team, we can maintain our market presence and continue to gain marketshare.”