5th Jul 2007 07:00
Michael Page International PLC05 July 2007 5 July 2007 Michael Page International plc Q2 AND FIRST HALF TRADING UPDATE 2007 Michael Page International plc, the specialist recruitment consultancy, reportsrecord quarterly Group gross profit for the second quarter of £121.0m, anincrease of 38.4% over the £87.4m recorded in the second quarter of 2006. Grossprofit in the first half of 2007 was £226.5m, an increase of 36.0% over the£166.6m recorded in the first half of 2006. At constant exchange rates, thesecond quarter growth rate was 40.4% and the first half of 2007 was 38.7%. Groupheadcount at 30 June was 4,323 (31 December: 3,758). In the UK, second quarter gross profit was £47.9m, an increase of 21.4% over the£39.4m recorded in the second quarter of 2006. First half gross profit was£92.0m, an increase of 21.0% over the £76.0m recorded in the first half of 2006.The UK business continued to grow at a consistent rate throughout the firsthalf of 2007 with good levels of activity continuing across all disciplines andall regions of the UK. In the first half of 2007, we opened offices in Leicesterand London's West End and launched Page Personnel in the UK. Headcount at 30June was 1,615 (31 December: 1,541). In Europe, Middle East and Africa (EMEA), second quarter gross profit was£48.5m, an increase of 55.3% (58.4%*) over the £31.2m recorded in the secondquarter of 2006. First half gross profit was £90.4m, an increase of 52.5%(55.9%*) over the £59.3m recorded in the first half of 2006. Our largestbusiness in EMEA is France which grew gross profit in the second quarter at33.6%* and for the first half at 28.6%*. Across the remainder of EMEA grossprofit grew in the second quarter at 74.0%* and for the first half at 74.3%*.The rapid expansion of the businesses in EMEA continued throughout the firsthalf of 2007 opening in Luxembourg and new office openings in Hamburg, Valenciaand Bordeaux. Headcount at 30 June was 1,785 (31 December: 1,435). In Asia Pacific, second quarter gross profit was £14.7m, an increase of 25.9%(29.2%*) over the £11.7m recorded in the second quarter of 2006. First halfgross profit was £27.0m, an increase of 25.2% (31.5%*) over the £21.6m recordedin the first half of 2006. In Australia we achieved growth in the second quarterof 22.6%* and for the first half 19.9%*. The operational changes that wereimplemented in the second half of 2006 delivered stronger operationalperformance, with gross profits reaching a record level in the second quarter of2007. In Asia the businesses continued to perform strongly, achieving growth inthe second quarter of 38.0%* and for the first half 48.7%*. Headcount at 30 Junewas 501 (31 December: 441). In the Americas, second quarter gross profit was £9.9m, an increase of 95.1%(103.2%*) over the £5.1m recorded in the second quarter of 2006. First halfgross profit was £17.1m, an increase of 75.9% (87.8%*) over the £9.7m recordedin the first half of 2006. In the first half of 2007 we opened offices inAtlanta and Hartford. Headcount at 30 June was 422 (31 December: 342). During the second quarter, the Group repurchased a further 5.4m shares at anaverage price of 559p. In the first half the Group repurchased and cancelled 8.4m shares at an averageprice of 535p, with 5.0m new shares issued following the exercise of shareoptions by employees. At 30 June 2007 there were 329.9m shares in issue. The Group will announce its interim results on 20 August 2007. Commenting on the second quarter trading, Steve Ingham, Chief Executive said: "We have built on our first quarter growth rate with an increase in growth ratesin all regions in the second quarter. The success of our strategy of pursuinggeographic diversification is now becoming more evident with the gross profitfrom the EMEA region now exceeding the UK for the first time. The investments wemade in the Americas are now generating returns with growth rates in the secondquarter exceeding 100% in local currency. "Our first half performance is testament to the strength of the Michael Pagebrand, our team based business model and the calibre of our valued employees. Wehave added over 1,000 people to the Group over the past 12 months and theopportunities for continuing their development and the growth of the businessfor the longer term are considerable. "There is clearly a continuing strong demand for talent throughout the globe andwith a shortage of suitably qualified people, the sourcing of candidates on aninternational basis is a key differentiator for Michael Page." * Denotes where overseas results denominated in foreign currencies have beentranslated at constant rates of exchange for constant currency illustrativepurposes. The company will host a presentation and conference call for analysts andinvestors at 9.00am today. The presentation can be viewed by following the link:http://w.on24.com/r.htm?e=66693&s=1&k=B67FEF77ED92390719EC39F9974B8783 The dial-in details for the conference call are as follows: Dial-In: +44 (0)20 7162 0025Conference ID: 757512 Please quote 'Michael Page Quarter 2 Trading Update' to gain access to the call. The presentation and recording of the call will be available on the company'swebsite later today at http://investors.michaelpage.co.uk/ir/mpi/ir.jsp?page=presentations Investor Day The Group is holding an investor day in London on 12 September 2007. If youwould like to attend please register at: http://c.fw-reply.com/mail/15veMq/s6gv6l/S6gb52/view?contentpart=6gv6p Enquiries:Michael Page International plcSteve Ingham Chief Executive 01932 264144Stephen Puckett Finance Director 01932 264144Financial DynamicsRichard Mountain/David Yates 020 7269 7121 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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