A slump in demand from the UK banking sector in the first quarter, is making the UK look far less buoyant in 2012 for recruitment firm Michael Page International.
In the three months ended 31 March, UK gross profit (net fee income) fell 3.7% to £30.6m, and now represents 23% of the group total vs. 25% last year. This is a sharp reversal after delivering healthy 7% growth in its UK business last year (see Michael Page hits the billion). Investors reacted by knocking 6.5% off Michael Page's share price, before recovering a bit of ground.
It is banking, which represents 5% of the UK gross profit, which really suffered, down a startling 50% yoy, and pushing the UK into a decline. Excluding banking, Michael Page said the UK would actually have been ‘marginally ahead’ of Q111. In response, headcount has been reduced 2.6% since the start of the year to 1,259, and down 7.3% yoy.
Outside the UK things are more buoyant, particularly in the emerging Asia Pacific market, where Michael Page saw growth of 23%. This is far better than rival Robert Walters, which only managed 7% growth in APAC in Q1 (see Robert Walters Q1 holds up). That said RW’s UK business does still continue to grow. These mixed signals from two key UK IT recruiters shows 2012 will be another tough year for UK SITS.