The Group will issue its preliminary results for 2009 on 5th March 2010. Trading update
Michael Page International plc (MPI), the specialist recruitment consultancy, reports fourth quarter Group gross profit of £90.6m (Q4 2008: £118.7m), which was £8.3m (10.1% or 10.0%*) higher than the third quarter of 2009. Full year gross profit was £351.7m, which is 36.4% (41.2%*) lower than in 2008. The headcount reductions and profit share model contributed to the Group generating operating profit from trading activities for the year of around £20m (2008: £140m).
Headcount was stable during the fourth quarter and at the end of December was 3,549, 28% lower than at the end of 2008. Net cash at 31 December 2009 was around £138m (2008: £94.3m).
EMEA Gross Profit
(46% of Group in Q4 2009)
Growth rates
Reported Constant exchange
Q4 2009 vs. Q4 2008 £42.2m £59.7m -29.3% -34.9%
Q4 2009 vs. Q3 2009 £42.2m £35.7m +18.3% +19.7%
Headcount at 31 December 1,572 (30 September 1,609)
In local currency:
• France (19% of the Group) was lower by 27% against Q4 2008 (26% higher than Q3 2009)
• Netherlands (5% of the Group) was lower by 54% against Q4 2008 (2% higher than Q3 2009)
• Germany (6% of the Group) was lower by 44% against Q4 2008 (3% lower than Q3 2009)
• Italy (4% of the Group) was lower by 32% against Q4 2008 (22% higher than Q3 2009)
• Spain (3% of the Group) was lower by 33% against Q4 2008 (13% higher than Q3 2009)
• Austria, Belgium, Ireland, Luxembourg, Poland, Portugal, Russia, South Africa, Sweden, Switzerland, Turkey, U.A.E. (9% of the Group) was lower by 31% against Q4 2008 (12% higher than Q3 2009)
In our largest region, Europe, Middle East and Africa (EMEA), representing 46% of Group gross profit, fourth quarter gross profit was £42.2m, a decrease of 29.3% (34.9%*) over the £59.7m recorded in the fourth quarter of 2008.
As the fourth quarter progressed, the improvement in market conditions, which began with stabilisation in a number of countries in the third quarter, continued, with almost every country growing in local currency. For the EMEA region as a whole, fourth quarter gross profit was £6.5m (18.3% or 19.7%*) higher than the third quarter of 2009. In France, which represents 40% of the region, fourth quarter gross profit was 26%** higher than the third quarter of 2009.
UK Gross Profit
(31% of Group in Q4 2009)
Growth rates
Q4 2009 vs. Q4 2008 £26.5m £36.2m -26.7%
Q4 2009 vs. Q3 2009 £26.5m £27.3m -2.8%
Headcount flat on 30 September 2009 at 1,179
• Finance & Accounting (16% of the Group) was 23% lower against Q4 2008 (1% higher than Q3 2009)
• Marketing, Sales and Retail (6% of Group) was lower by 34% against Q4 2008 (8% lower than Q3 2009)
• Legal, Technology, HR and Secretarial (5% of the Group) was lower by 26% against Q4 2008 (1% lower than Q3 2009)
• Engineering & Manufacturing, Procurement & Supply Chain, Property & Construction (4% of the Group) was lower by 25% against Q4 2008 (7% lower than Q3 2009)
In the UK, representing 31% of Group gross profit, fourth quarter gross profit was £26.5m, 26.7% lower than the £36.2m recorded in the fourth quarter of 2008. Market conditions during the quarter remained difficult, with sequential quarterly gross profit declining by 2.8%. While there was an improvement in the Financial Services sector, market conditions for the other disciplines remain challenging. The headcount reductions made earlier in 2009 have reduced the cost base and with no change in the headcount during the fourth quarter, year-end headcount was 1,179 (2008: 1,640).
Asia Pacific Gross Profit
(13% of Group in Q4 2009)
Growth rates
Reported Constant exchange
Q4 2009 vs. Q4 2008 £12.2m £12.4m -1.0% -12.9%
Q4 2009 vs. Q3 2009 £12.2m £10.8m +13.4% +13.5%
Headcount at 31 December 403 (30 September: 398)
In local currency:
• Australia and New Zealand (6% of the Group) was lower by 27% against Q4 2008 (6% higher than Q3 2009)
• Asia (7% of Group) was higher by 3% against Q4 2008 (10% higher than Q3 2009)
In Asia Pacific, fourth quarter gross profit was £12.2m, a decrease of 1.0% (12.9%*) over the £12.4m recorded in the fourth quarter of 2008. However, sequentially the region grew by £1.4m (13.4% or 13.5%*). The stabilisation in market conditions across the region that emerged in the third quarter, further improved during the fourth quarter, with gross profit in Australia and New Zealand up 6%** on the third quarter, while the Rest of Asia grew 10.0%* over the third quarter, with stronger performances in all countries.
Americas Gross Profit
(10% of Group in Q4 2009)
Growth rates
Reported Constant exchange
Q4 2009 vs Q4 2008 £9.7m £10.5m -8.3% -15.3%
Q4 2009 vs Q3 2009 £9.7m £8.6m +13.1% +10.1%
Headcount at 31 December 395 (30 September: 358)
In local currency:
• Brazil, Mexico & Argentina (6% of the Group) was lower by 5%, against Q4 2008 (11% higher than Q3 2009)
• USA & Canada (4% of the Group) was lower by 28%, against Q4 2008 (5% higher than Q3 2009)
In the Americas, fourth quarter gross profit was £9.7m, which was sequentially £1.1m or 10%* higher than the third quarter. In Latin America, our newer businesses in Mexico and Argentina continued to perform well. Our larger business in Brazil grew sequentially by 11%** in the fourth quarter. The North American businesses contracted in the fourth quarter year-on-year by 28%**, but sequentially increased by 5%**, building upon the improvements seen in the third quarter, despite trading conditions in North America remaining particularly difficult.