It was a landmark year for UK-headquartered, international recruitment firm Michael Page, with revenues hitting the £1b mark for the first time. That’s a result! Most of the news had been presaged in its recent trading update (see A good ‘miss’ at Michael Page) but for the record, revenues for the year to 31st Dec. 2011 grew by 22% to £1.02b (all organic), gross margins improved by 120bps to 54.3% though operating margins eased by 20bps (excluding last year’s exceptionals) to 8.4%. Frankly these results should leave peers Adecco, Robert Walters (see here) and (especially) Hays (see here) gasping in admiration.
Even Michael Page’s UK business grew last year, by 7% to £325m, and recorded 40.3% gross margins, though down 130bps compared to 2010. Michael Page is a relatively minor player in IT recruitment, which is banded in with its Legal, HR, Secretarial and ‘Other’ disciplines. Again for the record, this division saw revenues increase by 31% to £205m, and ran a 51.5% gross margin, down just 50bps yoy.
It was over three years ago that Michael Page rebutted an unsolicited approach from Adecco at around 356p a share (see Michael Page soars on bid approach). Prior to this, management had already rejected two bids at 400p. Well, despite my own misgivings their decision was indeed vindicated. Michael Page’s shares are now around 450p.