Michael Page posts jump in third quarter profit

Recruitment consultancy Michael Page posted a 10.2% increase in third-quarter gross profit to £139.2m thanks to good contributions from all four regions.

At reported rates, third quarter growth was 4.8%, as foreign exchange volatility continued to impact results, reducing gross profit by around £7m.

The company said market and trading conditions across and within its regions was mixed, with EMEA recording its best quarter for almost four years, and particularly strong performances from France, Germany and Southern Europe.

It said the UK delivered another quarter of solid growth, while greater China improved sequentially, despite ongoing economic concerns for the region, and the US continues to grow strongly and now represents the fourth largest country by gross profit.

Elsewhere, trading conditions in Brazil continued to deteriorate and Australia remained challenging.

Chief executive officer Steve Ingham said: “We are pleased with our performance in the third quarter and, despite the short visibility and challenging conditions in a number of our markets, the group's outlook remains positive for the rest of the year.

Cash generation in the period was particularly strong with net cash of around £130m at the quarter end, before payment of interim and special dividends of £61.3m on 2 October. Save for any further movements in foreign exchange, the board's expectation for the full year remains unchanged."

In a separate statement, the company said Robin Buchanan has indicated his intention to step down from his position as non-executive chairman and leave the board on the appointment of his successor.

Michael Page added it will now undertake a process to select that person and the date of Buchanan’s retirement will be confirmed by a separate announcement in due course.

Buchanan joined the board in August 2011 as a non-exec director and was appointed chairman in December 2011.