Michael Page Reports Sequential Growth In All Geographies

The U.K.'s second largest recruiter, Michael Page International PLC (MPI.LN), Friday said it would improve its performance significantly after reporting sequential growth in all of its geographic regions in the first quarter.

Chief Executive Steve Ingham said, "while we believe the outlook for the U.K., Continental Europe and North America is less certain, we are now experiencing an improvement in almost all markets."

First-quarter gross profit rose 7.9% on the fourth quarter, to GBP97.8 million, gaining 2.9% on an annual basis. Gross profit from permanent placings, which makes up 77% of the group, rose 13% on the same period last year--gross profit from temporary placings fell 20.3%.

European recruiters have been hard hit by the credit crunch and subsequent economic downturn as companies have contracted and reduced staff or stopped hiring. Although markets largely stabilized in the second half of last year, candidate confidence, which drives business, remains low because of concerns about the economy, unemployment and a double dip recession.

But both Michael Page, and rival recruiter Hays PLC (HAS.LN), which reported another fall in net fees on Thursday, said that markets have largely stabilized and that they have started to hire new staff. Michael Page said its headcount increased 3.1% to 3,659 at March 31.

Michael Page shares closed Thursday at 424 pence giving the company market capitalization of GBP1.32 billion. They've risen 11.7% since the start of the year on hopes that the improving economic environment will translate into recruitment markets.

-By Anita Likus, Dow Jones Newswires; [phone]; [e-mail]