Global demand for right people boosts Michael Page profits

Michael Page, which finds jobs for people in the financial, accounting and legal service sectors, said its gross profit for the fourth quarter was up 32 per cent at 119.8m, taking the full-year figure up 26 per cent.

The fourth quarter was boosted by growth in Asia, Latin America, the big markets in Europe and the Middle East and an improving picture in the UK where confidence levels improved in all sectors apart from the public sector.

The strong end to the year means Michael Page expects its 2010 operating profit from trading activities to be marginally ahead of the current consensus of 70.1m. Analysts welcomed the strong fourth-quarter figures but shares in the group were flat in early trading following a strong run into the results and encouraging signs from rivals Robert Walters and Hays.

"With growth in every territory and further investment in headcount, we expect further progress in 2011," said Panmure Research in a note. "We increase our target price from 435p to 544p to reflect greater confidence in 2011, but the shares remain a 'hold' at current levels."

Shares in Michael Page dipped 2.3 per cent to 527.5p.

Trading was boosted by an almost 70 per cent jump in fourth-quarter gross profit in the Asia Pacific region, which accounts for 17 per cent of the group. Europe, Middle East and Africa, 44 per cent of the group, was up 25 per cent. The UK, which has struggled in recent years and which accounts for 26 per cent of the group, was up 16 per cent. The Americas were up by 62 per cent.

"I am delighted to report another strong quarter of organic growth in year-on-year gross profit, up 32 per cent, with all regions improving," said chief executive Steve Ingham.

"Most of this growth came from permanent recruitment, up 40 per cent, with temporary recruitment growth rates also improving, now up 10 per cent."

Mr Ingham said the strong growth in permanent placements was due to demand for those jobs in the emerging markets. He also said that the group was relatively positive about the British market, although it was still too soon to see the impact of government cuts to public sector jobs.