8th Jan 2007 07:00
Michael Page International PLC08 January 2007 8 January 2007 2006 FOURTH QUARTER TRADING AND FULL YEAR GROSS PROFIT UPDATE Michael Page International plc, the specialist recruitment consultancy, reportsfourth quarter gross profit of £93.0m, an increase of 32.4% over the £70.2mrecorded in the fourth quarter of 2005. Full year gross profit is estimated at£348.7m, an increase of 30.3% over the £267.6m reported in 2005. We have made significant progress throughout 2006 producing record gross profitsand earnings. In line with our strategy of organic growth, we have also madesubstantial investments for the longer term prospects of the Group. Whilecontinuing to launch and expand new and existing offices and disciplines in ourestablished markets, we opened offices in five new countries. With numerousopportunities for future growth we increased our rate of investment and spend inthe fourth quarter. This investment is reflected in the Group's year endheadcount of 3,758, which is 28% higher than at the end of 2005. Regional Summary UK fourth quarter gross profits were £38.9m, an increase of 18.8% over the£32.7m recorded in the fourth quarter of 2005. Full year gross profit isestimated at £155.7m (2005: £129.5m), an increase of 20.2%. Strong growth hasbeen achieved throughout 2006 with good levels of activity continuing across alldisciplines and all regions of the UK. In Europe, Middle East and Africa (EMEA), fourth quarter gross profits were£37.0m, an increase of 49.2% over the £24.8m recorded in the fourth quarter of2005. Full year gross profit is estimated at £126.5m (2005: £86.1m), an increaseof 46.9%. In France, the region's largest business representing 38% of EMEA, theannual growth rate was 22%. The rest of EMEA grew at 68% with most countries,including Germany, Holland and Spain, growing in excess of 60%. In the fourthquarter, we continued our organic expansion opening an office in Dublin,Republic of Ireland. Asia Pacific fourth quarter gross profits were £11.3m, an increase of 22.4% overthe £9.2m recorded in the fourth quarter of 2005. Full year gross profit isestimated at £45.0m (2005: £39.0m), an increase of 15.2%. In Australia, thepositive impact of the management and structural changes are becoming evidentwith fourth quarter gross profit of £6.5m, a year on year increase of 16.8%,albeit against a weak comparative. For the full year, gross profit is estimatedat £26.0m, an increase of 5.2%. The Americas fourth quarter gross profits were £5.9m, an increase of 66.7% overthe £3.5m recorded in the fourth quarter of 2005. Full year gross profit isestimated at £21.4m (2005: £12.9m), an increase of 66.5%. We made considerableinvestment in the region during 2006 opening new offices and expanding our rangeof disciplines. Share buy backs During the fourth quarter, the Group repurchased a further 5.82m shares at anaverage price of 403.9p. During the year, the Group repurchased a total of 23.3mshares at an average price of 355.8p. Michael Page International plc will release its preliminary results for the yearended 31st December 2006 on 28th February 2007. Commenting on the fourth quarter performance, Chief Executive Steve Ingham said: "2006 has been a very successful year for the Group with all regionscontributing to our record results and a particularly strong performance fromEurope. I am pleased with the successful acceleration of our investment spend in2006 in order to capture a number of growth opportunities, all the timefollowing the proven Michael Page model of expanding organically withexperienced senior managers. With this investment, we expect to continue todeliver good growth in 2007 and beyond." Enquiries: Michael Page International plcSteve Ingham Chief Executive 01932 264144Stephen Puckett Group Finance Director 01932 264144 Financial DynamicsDavid Yates/Susanne Walker 020 7269 7121 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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