Recruitment player Michael Page has provided a Q2/H1 update this morning. The company continues to grow in Asia. But closer to home, the picture is dominated by the tough trading conditions brought about the global financial crisis. Shares are down 4% in morning trading.
Michael Page saw gross profit in the UK decline by 6.6% in the first half, to £61.7m. The Q2 slump was even worse, at 9.2% year-on-year. It appears recruitment conditions in the banking sector have deteriorated for Michael Page over the past six months. And they clearly show no sign of bouncing back any time soon.
The company’s “legal, technology, HR, secretarial, healthcare” grouping - into which its SITS interests fit - did see a 9.0% rise in total gross profit in H1. However, that figure will have been much boosted by a strong performance in Asia Pacific (where total gross profit was up 14% in the first half).
Like rivals Hays and Robert Walters (see Deteriorating market conditions hit Robert Walters) Michael Page is particularly suffering from the unrelenting crisis in the banking sector and the depressed conditions in so much of the rest of the economy. Indeed, of the generalised recruiters we track, only Adecco has had better news to report of late (see Adecco sees IT recruitment jump).
Not surprisingly, Michael Page is looking further afield for growth. During the first half it opened new offices in South Africa, Colombia, Morocco, Taipei, China and the fast-growing IT market of Brazil (see Brazilian IT market grows 11% in 2011).