Michael Page International PLC
05 July 2007
5 July 2007
Michael Page International plc
Q2 AND FIRST HALF TRADING UPDATE 2007
Michael Page International plc, the specialist recruitment consultancy, reports
record quarterly Group gross profit for the second quarter of £121.0m, an
increase of 38.4% over the £87.4m recorded in the second quarter of 2006. Gross
profit in the first half of 2007 was £226.5m, an increase of 36.0% over the
£166.6m recorded in the first half of 2006. At constant exchange rates, the
second quarter growth rate was 40.4% and the first half of 2007 was 38.7%. Group
headcount at 30 June was 4,323 (31 December: 3,758).
In the UK, second quarter gross profit was £47.9m, an increase of 21.4% over the
£39.4m recorded in the second quarter of 2006. First half gross profit was
£92.0m, an increase of 21.0% over the £76.0m recorded in the first half of 2006.
The UK business continued to grow at a consistent rate throughout the first
half of 2007 with good levels of activity continuing across all disciplines and
all regions of the UK. In the first half of 2007, we opened offices in Leicester
and London's West End and launched Page Personnel in the UK. Headcount at 30
June was 1,615 (31 December: 1,541).
In Europe, Middle East and Africa (EMEA), second quarter gross profit was
£48.5m, an increase of 55.3% (58.4%*) over the £31.2m recorded in the second
quarter of 2006. First half gross profit was £90.4m, an increase of 52.5%
(55.9%*) over the £59.3m recorded in the first half of 2006. Our largest
business in EMEA is France which grew gross profit in the second quarter at
33.6%* and for the first half at 28.6%*. Across the remainder of EMEA gross
profit grew in the second quarter at 74.0%* and for the first half at 74.3%*.
The rapid expansion of the businesses in EMEA continued throughout the first
half of 2007 opening in Luxembourg and new office openings in Hamburg, Valencia
and Bordeaux. Headcount at 30 June was 1,785 (31 December: 1,435).
In Asia Pacific, second quarter gross profit was £14.7m, an increase of 25.9%
(29.2%*) over the £11.7m recorded in the second quarter of 2006. First half
gross profit was £27.0m, an increase of 25.2% (31.5%*) over the £21.6m recorded
in the first half of 2006. In Australia we achieved growth in the second quarter
of 22.6%* and for the first half 19.9%*. The operational changes that were
implemented in the second half of 2006 delivered stronger operational
performance, with gross profits reaching a record level in the second quarter of
2007. In Asia the businesses continued to perform strongly, achieving growth in
the second quarter of 38.0%* and for the first half 48.7%*. Headcount at 30 June
was 501 (31 December: 441).
In the Americas, second quarter gross profit was £9.9m, an increase of 95.1%
(103.2%*) over the £5.1m recorded in the second quarter of 2006. First half
gross profit was £17.1m, an increase of 75.9% (87.8%*) over the £9.7m recorded
in the first half of 2006. In the first half of 2007 we opened offices in
Atlanta and Hartford. Headcount at 30 June was 422 (31 December: 342).
During the second quarter, the Group repurchased a further 5.4m shares at an
average price of 559p.
In the first half the Group repurchased and cancelled 8.4m shares at an average
price of 535p, with 5.0m new shares issued following the exercise of share
options by employees. At 30 June 2007 there were 329.9m shares in issue.
The Group will announce its interim results on 20 August 2007.
Commenting on the second quarter trading, Steve Ingham, Chief Executive said:
"We have built on our first quarter growth rate with an increase in growth rates
in all regions in the second quarter. The success of our strategy of pursuing
geographic diversification is now becoming more evident with the gross profit
from the EMEA region now exceeding the UK for the first time. The investments we
made in the Americas are now generating returns with growth rates in the second
quarter exceeding 100% in local currency.
"Our first half performance is testament to the strength of the Michael Page
brand, our team based business model and the calibre of our valued employees. We
have added over 1,000 people to the Group over the past 12 months and the
opportunities for continuing their development and the growth of the business
for the longer term are considerable.
"There is clearly a continuing strong demand for talent throughout the globe and
with a shortage of suitably qualified people, the sourcing of candidates on an
international basis is a key differentiator for Michael Page."
* Denotes where overseas results denominated in foreign currencies have been
translated at constant rates of exchange for constant currency illustrative
purposes.
The company will host a presentation and conference call for analysts and
investors at 9.00am today. The presentation can be viewed by following the link:
http://w.on24.com/r.htm?e=66693&s=1&k=B67FEF77ED92390719EC39F9974B8783
The dial-in details for the conference call are as follows:
Dial-In: +44 (0)20 7162 0025
Conference ID: 757512
Please quote 'Michael Page Quarter 2 Trading Update' to gain access to the call.
The presentation and recording of the call will be available on the company's
website later today at http://investors.michaelpage.co.uk/ir/mpi/ir.jsp?page=
presentations
Investor Day
The Group is holding an investor day in London on 12 September 2007. If you
would like to attend please register at:
http://c.fw-reply.com/mail/15veMq/s6gv6l/S6gb52/view?contentpart=6gv6p
Enquiries:
Michael Page International plc
Steve Ingham Chief Executive 01932 264144
Stephen Puckett Finance Director 01932 264144
Financial Dynamics
Richard Mountain/David Yates 020 7269 7121
This information is provided by RNS
The company news service from the London Stock Exchange
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