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.
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.