“We all knew we were in a global downturn and there was no where to hide for recruitment,” said Steve Ingham chief executive of Michael Page International. This frank assessment came as group operating profit plunged an eye-watering 86 per cent on a constant currency basis. This nose-dive came despite a 28 per cent reduction in headcount during the year to 3,549 and a decrease in the number of offices from 163 to 136. Overall, these measure slashed costs 19.6 per cent.
But it’s not all downbeat, conditions improved quite dramatically in the fourth quarter, which witnessed a 10 per cent increase in profits compared with the previous three months. This was more than the previous three quarters combined. The Asia Pacific region was first to leave the gutter, turning the corner around the end of first quarter. The group’s largest division, Continental Europe and the Middle East, saw a 20 per cent rise in fourth-quarter profits in sterling terms compared with the preceding quarter. What’s more, banking placements are now at double last year's level as institutions look to stay competitive. The balance sheet also looks robust after net cash was increased from £94.3m to £137.2m.
Analysts at Deutsche Bank estimate full-year pre-tax profits of £61m and EPS of 12.9p (from £21m and 3.9p in 2009).
Michael Page (MPI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 395p | MARKET VALUE: | £1.28bn | |
| TOUCH: | 394-395p | 12-MONTH HIGH: | 435p | LOW: 171p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 101 | |
| NET ASSET VALUE: | 61p | NET CASH: | £137m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 524 | 66.1 | 14.8 | 5.00 |
| 2006 | 649 | 97.0 | 19.6 | 6.00 |
| 2007 | 832 | 147 | 31.1 | 8.00 |
| 2008 | 973 | 140 | 30.3 | 8.00 |
| 2009 | 717 | 21.1 | 3.90 | 8.00 |
| % change | -26 | -85 | -87 | |
Ex-div: 3 May Payment: 5 Jun | ||||
