Steve Ingham, CEO of UK-headquartered international recruitment firm, Michael Page, warned of ‘another challenging quarter’ in the new year as he updated the market on trading conditions last quarter (to 31st Dec. 2012). Headline gross profits (also known as net fee income – NFI) fell by 7% (‑3.6% at constant currency - ccy) to £127m, dragged down by an 11% ccy drop in Continental Europe, its largest market (41% of GP). Asia-Pac (22% of GP) grew fastest at 10% ccy.
The UK story was also muted, with GP down 2% to £30m, though Bingham alluded to ‘strong performances’ in Technology, Digital, Energy and Compliance disciplines. Finance & Accounting across the group saw GP fall by 6% ccy, reflecting the same trend as much larger peer, Hays (see UK Public Sector grows faster for Hays).
There really are no surprises here and we expect to hear much the same from the other major recruitment players. The only bright spot in our sector is – as ever – niche ‘new tech’ skills that remain in short supply, but this does not signal the “25% leap” in IT salaries that featured recently in the press (see here).