7th Apr 2008 07:00
Michael Page International PLC07 April 2008 7 April 2008 FIRST QUARTER 2008 INTERIM MANAGEMENT STATEMENT Michael Page International plc is today publishing its Interim ManagementStatement relating to the period from 1 January to 31 March 2008, the firstquarter of the financial year ended 31 December 2008. For the first quarter of 2008, Michael Page International plc, the specialistrecruitment consultancy, reports a record quarterly Group gross profit of£140.3m, an increase of 33.0% (23.8%*) over the £105.5m recorded in the firstquarter of 2007. Group headcount at 31 March 2008 was 5,425 (31 December 2007:5,052). In our largest region, Europe, Middle East and Africa (EMEA) representing 46% ofGroup gross profit, first quarter gross profit was £65.2m, an increase of 55.3%(37.7%*) over the £42.0m recorded in the first quarter of 2007. With goodactivity levels, we continue to experience strong demand for talent across allcountries and disciplines, with the exception of banking. In France, our largestbusiness in the region representing 33% of EMEA gross profits, the first quartergrowth rate was 33%*, while the remaining EMEA countries grew at a combined rateof 40.2%*. Headcount in EMEA at 31 March 2008 was 2,255 (31 December 2007:2,078). During the first quarter we opened in a new country, Austria (Vienna)and new offices in Stuttgart, Seville, Massy, Breda and Gothenburg. In the UK, representing 34% of Group gross profit, first quarter gross profitwas £47.1m, an increase of 6.7% over the £44.1m recorded in the first quarter of2007. UK headcount at 31 March 2008 was 1,872 (31 December 2007: 1,799). Whileit is not possible to quantify, our first quarter growth rate was affected bythe early Easter break and a further weakening of the banking sector, which isalso impacting some of our other disciplines that service banking clients.Outside of these banking related areas we continue to see good activity in joband candidate flow. During the first quarter we opened new offices in Newcastleand Cardiff. In Asia Pacific, first quarter gross profit was £16.4m, an increase of 33.8%(22.0%*) over the £12.2m recorded in the first quarter of 2007. In Australia,first quarter gross profit growth increased to 30%* benefitting from theincreased investment in headcount in the latter part of 2007. In Asia, ourbusinesses grew gross profit at 11%*, with China, including Hong Kong,continuing to grow strongly, offset by a slowing in our Tokyo business, wherebanking represents a higher proportion of the business. Headcount in the regionat 31 March was 701 (31 December 2007: 632). During the first quarter we openedin a new country, New Zealand (Auckland) and a new office in Beijing. In the Americas, first quarter gross profit was £11.6m, an increase of 62.4%(51.1%*) over the £7.2m recorded in the first quarter of 2007. We continue toachieve strong growth in the USA, despite increasing concerns over the economy,reflecting our relative share to the total potential market. Headcount at 31March was 597 (31 December 2007: 543). During the first quarter we opened oursecond office in Canada in Montreal. Apart from the effect of the trading described above, there have been nosignificant changes in the financial position of the Group since the publicationof the results for the year ended 31 December 2007. Commenting on the first quarter trading, Steve Ingham, Chief Executive said: "Our strong first quarter performance clearly demonstrates the benefits of ourstrategy to diversify the Group's activities by geography and by discipline.Given the increasing concerns of economic slowdown, we are pleased with ourfirst quarter growth in gross profit of 33% to £140m, particularly given theeffect of an early Easter. "Whilst we continue to experience strong activity levels and demand for talent,in certain areas there are signs of more cautionary behaviour. Consequently, weare taking a similar approach to adding headcount in those areas most likely tobe affected, particularly in the UK. However we will continue to invest where weare experiencing strong demand and to exploit strategic longer termopportunities." * Denotes where overseas results denominated in foreign currencies have beentranslated at constant rates of exchange for constant currency illustrativepurposes. The company will host a conference call for analysts and investors at 9.00am today, the details of which are below. Link: http://w.on24.com/r.htm?e=106722&s=1&k=DBB9BC115C34B956E8D3FE7673923BAD Dial-In: +44 (0)20 7162 0125Conference ID: 789821 Please quote "Michael Page Quarter 1 Trading Update" to gain access to the call. A presentation and recording to accompany the call will be posted on thecompany's website during the course of the morning at: http://investors.michaelpage.co.uk/ir/mpi/ir.jsp?page=presentations Enquiries: Michael Page International plc Steve Ingham Chief Executive 01932 264144 Stephen Puckett Finance Director 01932 264144 Financial Dynamics Richard Mountain Managing Director 020 7269 7121 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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