US, Europe drive Michael Page Q1 gross profits

Recruitment firm Michael Page said first quarter gross profit grew 3.6% to £142.4m in constant currencies, despite the timing of Easter and the challenging market conditions in several of its larger markets, including Greater China, the UK and Brazil.

The company saw particularly good performances in the US, and Continental Europe, which now account for over 40% of the group. However, challenging conditions in the Middle East, as a result of ongoing political instability and the depressed oil price, resulted in a drop in gross profit of 28%.

"Current market conditions remain stronger at lower salary levels and in temporary roles. This was reflected by the strong growth of 9% in our Page Personnel business, where temporary recruitment represents 41% of gross profit,” the company said.

“Our Michael Page business, where temporary recruitment represents only 17%, grew 2%. Overall, temporary recruitment grew by 10.6%, compared to 1.6% in permanent."