Banking stability spreads to firms
Oct 8 2009 by Iain Laing, The Journal
ONE of the UK's largest recruitment firms has said stabilisation in the banking sector had spread to other businesses although third quarter profits remain down around 40% on last year.
Michael Page International further reduced its UK headcount across the period, to 1,179, but said September had seen a slight upturn in its staff numbers as it looked to increase its market share.
And the firm said it did not have plans to cut any more jobs in most of its markets.
Group profits were £82.2m in the period to September 30 compared to £141.4m last year. In the UK, which makes up about a third of the business, profits dropped to £27.3m from £45m last year. UK profits were 3% down on a quarter-on-quarter basis, but the firm said it had seen a levelling in the market.
“The stabilisation that started to become evident in the banking sector is now spreading to other sectors and in most businesses the revenue remained broadly flat on the previous quarter, despite the effect of summer,” it said.
Chief executive Steve Ingham added the company always anticipated that the seasonally quieter third quarter would be challenging, particularly in continental Europe, which was generally later into the downturn.
“However, as the third quarter progressed, market conditions in an increasing number of the countries in which we operate began to show signs of stabilisation and, with our lower cost base, we have recorded an operating profit in the quarter,” he added.
Marc Zwartsenburg of ING Wholesale Banking said the results were “a touch better“ than forecasts and news of further stabilisation bodes well for the rest of the recruitment industry.
Michael Page said permanent recruitment had been hit hardest in the economic downturn, but predicted it would recover faster when conditions improve.
Group fees from permanent placements, which make up 71% of the total business, were down almost 50% on last year on a constant currency basis. Temporary profits were down 30% on the same basis.
