Recruiter Michael Page lifts profits by 32 per cent

Michael Page, which finds jobs for people in the financial, accounting and legal services sectors, said it expected 2011 profit to be broadly in line with current market estimates of £111.7m.

The company said in a statement yesterday: “While our second-quarter gross profit was ahead of our expectations, we continue to invest significantly in developing our business both by geography and discipline,”

For the quarter to the end of June, group gross profit was £147.8m, compared with £111.7m last year.

Gross profit from permanent placements grew by 35 per cent to £118.6m.

Last week Michael Page’s rival Hays reported an 11 per cent rise in fourth-quarter net fees as growth at its international division helped to offset weakness at its UK business, which was hit by continued tough public sector conditions.

Michael Page shares have gained 38 per cent over the past year.

The shares rose three per cent in early trading yesterday, but closed down slightly, a fall of 0.7 per cent or 3.5p to 533.7p on profit taking.

Brokers received the news positively, but did not make any changes to target price or rating.

“This is the strongest level of sequential growth in over a decade by Michael Page,” said analysts at Evolution Securities in a note, maintaining their “buy” rating on the stock.

Investec Securities also kept its “buy” rating, saying that Michael Page’s results showed “very strong recovery/growth prospects”.

Analysts at RBS said: “The main surprise in the statement is the intention of Stephen Puckett, who has been in the finance director’s role for over 10 years, to depart for personal reasons.

“According to the statement, the increased time required to travel around the group no longer fits with his personal situation and the search for a successor is underway.”

Chief executive Steve Ingham said: “We continued to perform well in the second quarter of 2011, with the year-on-year increase in gross profit rising to 32 per cent.

“I would like to make a special mention of our business in Tokyo, which having been impacted by the recent earthquake and tsunami, has proved to be remarkably resilient, achieving an all-time gross profit record in June.”