Recruiter Michael Page (MPI) had a bumper 2014, as part of an industry reaping the rewards of US and UK economic recovery and growing candidate demand in developing markets. At constant currencies (CER), all four operating regions turned in double digit gross profit growth, while overall group operating profits were up by a fifth to £80.1m. The group's conversion rate (gross profit to operating profit from trading activities) grew by 140 basis points to 14.7 per cent.
The UK, which is the group's largest single market, capitalised on the steady recovery in the local labour market. As a result, gross CER profits grew 11.5 per cent to £138m. The domestic business has been helped by persistent candidate shortages in certain technical disciplines, although the group said that these were still at lower salary levels.
Though market conditions were mixed across the large EMEA segment, revenues still grew by 3 per cent. Reported profits suffered as a result of the strong pound, but Michael Page's largest EMEA markets in France and Germany still recorded solid underlying growth. Performance benefited from the growing popularity of temporary work contracts, as employers on the continent continue to struggle with strict labour laws.
Broker Citi expects diluted EPS of 20.4p this year (up from 18.2p in 2014), while the 2016 estimate stands at 28.6p.
MICHAEL PAGE (MPI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 497p | MARKET VALUE: | £1.6bn | |
| TOUCH: | 496-497p | 12-MONTH HIGH: | 508p | LOW: 359p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 67p | NET CASH: | £90m | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 0.8 | 101 | 21.6 | 9.0 |
| 2011 | 1.0 | 86.0 | 18.7 | 10.0 |
| 2012 | 1.0 | 57.0 | 11.9 | 10.0 |
| 2013 | 1.0 | 64.1 | 13.8 | 10.5 |
| 2014 | 1.1 | 80.4 | 19.3 | 11.0 |
| % change | +4 | +25 | +40 | +5 |
Ex-div: 21 May Payment: 22 Jun | ||||
