UK recruiter Michael Page returns to profit growth after four-year slump

By Reuters News
FILE PHOTO: A woman holds an umbrella in view of the City of London skyline in London, Britain, July 25, 2024. REUTERS/Hollie Adams/File Photo

By Nithyashree R B

Oct 13 (Reuters) - British recruiter Michael Page PAGE.L returned to profit growth after four years of declines, and its CEO expects the recovery to last into 2027 on strong hiring across US construction and Asian markets.

Recruiters have been grappling with a weak jobs market across Europe as tariffs, political uncertainty and higher energy prices make employers cautious.

However, pockets of strength in the US, Japan, China and India helped Michael Page post a 1.5% increase in third-quarter gross profit.


US STAGES RECOVERY

CEO Nicholas Kirk told Reuters white-collar hiring recoveries tend to come in three stages: confidence improves, more job offers turn into hires, then jobs and interviews rise.

Kirk said the US, where white collar-focussed Michael Page has grown for eight consecutive quarters, was at the final stage of this cycle.

https://www.reuters.com/graphics/MICHAELPAGE-GROSSPROFIT/zdpxealqovx/chart.png

EUROPE LAGS

Britain, Germany, and Northern Europe were still at the first stage. "Things feel better, but they're yet to move into that turning into improved results. But I would expect that to happen next," the CEO said.

Michael Page has been raising consultant headcount in the US, Japan and India, while reducing it in France, Germany and Britain.

In Europe, its largest region, gross profit fell 7% in Germany and 11% in France. Americas gross profit jumped 8.9% in the quarter, driven by US construction and manufacturing. Asia Pacific grew 14.7%.

Michael Page's overall group gross profit came in at £190.5 million ($252 million) in the quarter ended September, beating a company-compiled consensus of £187.9 million. The firm retained its annual profit outlook.

Improved trading was driven by clients and candidates becoming more willing to negotiate job offers, the company said.

Its shares fell 4% by 0850 GMT after briefly trading higher in early morning trade.

Larger rival Hays HAYS.L on Monday reported its 14th-consecutive quarterly fall in net fees on Germany and UK weakness.


https://www.reuters.com/graphics/RECRUITER-SHARES/mypmrjdazvr/chart.png

($1 = 0.7559 pounds)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.