Q4 Trading Update
Michael Page International PLC
08 January 2008
8 January 2008
2007 FOURTH QUARTER TRADING AND
FULL YEAR GROSS PROFIT UPDATE
Michael Page International plc, the specialist recruitment consultancy, reports
a record quarterly Group gross profit of £128.2m for the fourth quarter, an
increase of 37.6% (33.9%*) over the £93.1m recorded in the fourth quarter of
2006. Full year gross profit was a record £478.1m, an increase of 37.1%
(37.6%*) over the £348.8m reported in 2006. Group headcount at 31 December
was 5,052.
In our largest region, Europe, Middle East and Africa (EMEA), fourth quarter
gross profit was £57.7m, an increase of 55.9% (48.7%*) over the £37.0m recorded
in the fourth quarter of 2006. Full year gross profit was £196.5m, an increase
of 55.2% (55.0%*) over the £126.6m reported in 2006. In France, our largest
business in the region representing 33% of EMEA gross profits, we again grew
strongly with a fourth quarter growth rate of 35%*. The remaining EMEA
countries grew at a combined rate of 57%*. Headcount at 31 December was 2,078.
In the UK, fourth quarter gross profit was £45.0m, an increase of 15.6% over the
£38.9m recorded in the fourth quarter of 2006. Full year gross profit was
£186.0m, an increase of 19.4% over the £155.8m reported in 2006. During the
fourth quarter, save for some weakness in specific banking sectors, the UK
business continued to experience good levels of activity across all other
disciplines and industry sectors. Headcount at 31 December was 1,799.
In Asia Pacific, fourth quarter gross profit was £14.8m, an increase of 30.6%
(26.1%*) over the £11.3m recorded in the fourth quarter of 2006. Full year gross
profit was £57.2m, an increase of 27.3% (29.6%*) over the £45.0m reported in
2006. In Australia, fourth quarter gross profit again grew at 26%*. In Asia,
our businesses also grew in the fourth quarter at 26%*, despite some weakness in
specific banking sectors. Headcount at 31 December was 632.
In the Americas, fourth quarter gross profit was £10.7m, an increase of 81.6%
(77.5%*) over the £5.9m recorded in the fourth quarter of 2006. Full year gross
profit was £38.4m, an increase of 78.9% (84.4%*) over the £21.5m reported in
2006. In December we opened in Buenos Aires, Argentina our third country in
Latin America. Headcount at 31 December was 543.
During the fourth quarter, the Group repurchased and held in Trust a further
3.5m shares at a cost of £14.9m, at an average price of 423p. In the year, the
Group has repurchased and cancelled or held in Trust a total of 15.1m (4.5%)
shares at a cost of £74.4m, at an average price of 494p.
Commenting on the fourth quarter trading, Steve Ingham, Chief Executive said:
"2007 has been a record year for the Group, with gross profit increasing by 37%,
compared to 30% in 2006. These results are testament to our organic growth
strategy of increasing the diversification of our business both geographically
and by discipline. 61% of our 2007 gross profit has been generated outside the
UK, with EMEA now our largest region, representing 41% of Group gross profit.
"We have further increased our headcount by 275 (5.8%) during the fourth
quarter, with the Group, for the first time, exceeding 5,000 employees who
operate from 149 offices in 25 countries. This compares to 2,666 employees
operating from 91 offices in 14 countries at the end of 2000.
"We continue to experience strong demand for talent around the globe and while
mindful of the uncertainties surrounding the current global economic outlook,
with numerous opportunities to grow our existing and new businesses, we are
confident in the prospects 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=101095&s=1&k=03A817B77EFA8C326A89668A72272586
The dial-in details for the conference call are as follows:
Dial-In: +44 (0)20 7162 0125
Conference ID: 779600
Please quote 'Michael Page Quarter 4 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
The Group will announce its full year results on 4 March 2008 and its first
quarter trading update on 7 April 2008.
Enquiries:
Michael Page International plc
Steve Ingham Chief Executive 01932 264144
Stephen Puckett Finance Director 01932 264144
Financial Dynamics
Richard Mountain Managing Director 020 7269 7121
This information is provided by RNS
The company news service from the London Stock Exchange