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Michael Page delivers special dividend

Recruiter Michael Page is riding high on increased confidence in the jobs market.
August 13, 2015

Client and candidate confidence across markets continued to buoy Michael Page International (MPI) during the first half, as the recruiter delivered a healthy 11 per cent increase in gross profit (at constant currency) to £281m. The fee earner to operational support staff ratio is back to a record 77:23, helping boost profitability. "It's not about more countries, it's about more fee earners in the existing countries and existing offices we're in," said chief executive Steve Ingham. Management is confident - paying shareholders a 16p special dividend.

IC TIP: Buy at 550p

The group's conversion rate - the ratio of operating profit to gross profit - increased by 80 basis points to 14.3 per cent. Page generated its best performance on home turf, with UK gross profit rising 12 per cent to £75.7m, driven by sectors including finance and accounting. The group's Europe, Middle East and Africa business had a mixed start to the year. Michael Page closed its poor-performing Russian business, incurring costs of around £1m. While gross profit in the Americas grew 7.5 per cent, tough macroeconomic conditions continued to drag on the profit of the group's Brazilian business. As a result fee earner headcount was cut by a fifth.

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