FINANCIALS: Michael Page’s profits up
13 August 2014
Professional recruiter Michael Page’s pre-tax profits increased 11% year on year in the first half of 2014, reaching £35.7m, according to financial results released this morning.
Wed, 13 Aug 2014Professional recruiter Michael Page’s pre-tax profits increased 11% year on year in the first half of 2014, reaching £35.7m, according to financial results released this morning.
Page delivered strong growth in each of its major markets, with gross profit increasing by 10% in the UK, 23% in the US and 22% in Greater China.
Steve Ingham, chief executive officer of Michael Page, said: “PageGroup delivered an increase of 7.9% in year-on-year gross profit growth in constant currencies for the first half, with improvement in all four regions. While adverse FX [Forex] continues to impact our results at reported rates, the underlying business environment is gradually improving in a number of our key markets. Looking ahead, we expect market conditions to remain challenging in Brazil and France, and for Australia to stabilise.”
The company’s profits were hit by the increasing strength of the pound. Gross profit increased by 7.9% to £263.7m in constant currency but, when FX movements are taken into account, the growth drops to 0.7%.
The company hired 177 fee-earners in the first half of the year. It had £42.9m net cash on its books at the end of the period. Acquisitions are unlikely, with the results noting the company’s commitment to organic growth: “Our strategy for organic growth has served the business well over the 38 years since its inception and we believe it will continue to do so.”
The interim dividend was increased by 5.2% to 3.42p to be paid on 3 October 2014. The share price fell 4.0% in the first few hours of trading.
Page delivered strong growth in each of its major markets, with gross profit increasing by 10% in the UK, 23% in the US and 22% in Greater China.
Steve Ingham, chief executive officer of Michael Page, said: “PageGroup delivered an increase of 7.9% in year-on-year gross profit growth in constant currencies for the first half, with improvement in all four regions. While adverse FX [Forex] continues to impact our results at reported rates, the underlying business environment is gradually improving in a number of our key markets. Looking ahead, we expect market conditions to remain challenging in Brazil and France, and for Australia to stabilise.”
The company’s profits were hit by the increasing strength of the pound. Gross profit increased by 7.9% to £263.7m in constant currency but, when FX movements are taken into account, the growth drops to 0.7%.
The company hired 177 fee-earners in the first half of the year. It had £42.9m net cash on its books at the end of the period. Acquisitions are unlikely, with the results noting the company’s commitment to organic growth: “Our strategy for organic growth has served the business well over the 38 years since its inception and we believe it will continue to do so.”
The interim dividend was increased by 5.2% to 3.42p to be paid on 3 October 2014. The share price fell 4.0% in the first few hours of trading.
