4th Apr 2007 07:01
Michael Page International PLC04 April 2007 4 April 2007 2007 FIRST QUARTER TRADING UPDATE Michael Page International plc, the specialist recruitment consultancy, reportsfirst quarter gross profits of £105.4m, an increase of 33.2% over the £79.2mrecorded in the first quarter of 2006. In the UK, the most developed market in which the Group operates, first quartergross profits were £44.1m, 20.4% up on the first quarter of 2006 (£36.6m). Allspecialist disciplines continued to demonstrate strong growth rates. During thefirst quarter we opened an office in Leicester. In Europe, Middle East and Africa (EMEA), first quarter gross profits were£41.9m, 49.3% up on the first quarter of 2006 (£28.1m). In France, the largestbusiness representing 34% of EMEA gross profits, growth was 21%. All theremaining countries grew at a combined rate of 70%. The new businesses westarted last year in Moscow, Dublin, Johannesburg and Dubai are ahead of plan.During the first quarter we started a business in Luxembourg and opened ourfifth German office in Hamburg. In Asia Pacific, first quarter gross profits were £12.2m, 24.4% up on the firstquarter of 2006 (£9.8m). In Australia we achieved growth in the first quarterof 11% (17% in local currency) and we are confident that we will continue to seefurther progress as the year continues. In Asia we achieved growth of 46% withHong Kong and Tokyo performing particularly well. In the Americas, first quarter gross profits were £7.1m, 54.6% up on the firstquarter of 2006 (£4.6m). In the Americas we continue to invest in management aswell as fee earners. In North America we opened our eighth office in Hartfordand at the start of April, our ninth office in Atlanta. In Latin America, ourbusiness in Brazil continued its strong growth and the new business in Mexico isalso ahead of plan. During the first quarter the Group repurchased and cancelled 3.0m shares at anaverage price per share of 491.2p. Also during the first quarter 2.2m new shareswere issued following the exercise of share options by employees. Commenting on the first quarter trading, Steve Ingham, Chief Executive said: "This has been an outstanding start to the year with strong growth from allregions and in constant currencies the Group's gross profits grew by 37%. "We have continued our strategy of organic growth opening in Luxembourg and inexisting countries by opening new offices and rolling out disciplines. Asenvisaged we increased our headcount as many teams around the world reachedcapacity and reacted by adding new fee earners. At the end of March, with EMEAwell ahead of plan, we have approximately 4,100 staff. "In all countries, without exception, we are currently experiencing stronglevels of client activity against a backdrop of an increasingly common theme ofa shortage of good quality candidates. Through the combination of our website,our biggest source of candidates, an internationally respected brand and aglobal database of candidates, we believe we can leverage our competitiveadvantage. As a result the outlook for Michael Page continues to be veryencouraging." Enquiries: Michael Page International plcSteve Ingham Chief Executive 01932 264144Stephen Puckett Finance Director 01932 264144 Financial DynamicsRichard Mountain/Susanne Walker 0207 269 7291 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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