Turn to Michael Page for long-term growth

Net fee income for the fourth quarter of 2014 grew by 13 per cent to £136.2m, ahead of expectations of £134m. The recruiter's UK and US businesses, which respectively make up around a quarter and 14 per cent of group gross profit, have been the most consistent drivers of growth. In the UK, Page Personnel has been a key force behind this, delivering 26 per cent gross profit growth in the fourth quarter and 17 per cent in the first half. The group's focus on permanent recruitment, which accounted for 75 per cent of group gross profits in 2014, puts it in a good position to benefit from further UK recovery.

Prospects for Page's Europe, Middle East and Africa (Emea) business, which generated 40 per cent of the group's gross profits last year, also appear brighter than they have been for some time. Admittedly, the weak euro continues to be a bugbear, contributing to a 2014 gross-profits currency hit of £33m. However, the Emea business returned to growth during the first half of the year, delivering a 41 per cent increase in operating profit on a constant currency basis. Momentum built in the final quarter, with a year-on-year gross profit increase of 12.5 per cent. In particular Germany, which is one of the group's "high-priority, high-potential markets", increased profits by 14 per cent. The region's conversion rate was also pulled up two-fifths to 13.7 per cent during the first half of the year, as the results of management's efficiency drive started to filter through.

Its more difficult in Brazil and the Asia Pacific region, but markets have started to stabilise. Fourth-quarter gross profits for Page's Australian and New Zealand business, which have been affected by the downturn in the mining and commodities sector, were up 3 per cent in constant currency on the previous year. This is compared with a 6.9 per cent reduction in the first half and a 19 per cent drop in 2013. The recovery in activity following Brazil's October presidential election also fed into 16 per cent profit growth there during the final quarter.

The group, which has net cash of £89m, has also spent the past two years upscaling the revenue generating side of its business: its fee earners. In 2013 the group cut 155 support staff and added 186 fee earners. The following year a further 468 fee earners were hired, finishing the year with a record fee-earner-to-operational-support-staff ratio of 77:23. Management expects to add a similar level this year, skewed to areas of low capacity as well as its five high-potential markets: Germany, Greater China, Latin America, South East Asia and the US. Its upsurge in headcount has pulled on forecast profits for 2015, with analysts at Numis maintaining their full-year EBIT forecast of £99.6m despite better-than-expected growth in net fee income. However over the longer term this should filter through to heighten consultant productivity, which in turn will boost the group's conversion rate.