Morning........
MICHAEL PAGE INTERNATIONAL PLC
Half Year Results for the Period Ended 30 June 2009
Michael Page International plc ("Michael Page"), the specialist professional recruitment company, announces its half year results for the period ended 30 June 2009.
Financial summary (6 months to 30 June 2009 ) 2009 2008 Change Change CER*
Revenue £364.7m £500.0m -27% -33%
Gross profit £178.8m £292.7m -39% -45%
Operating profit before NRI † £5.6m £84.9m -93% -94%
Operating profit £32.2m £84.9m -62% -62%
Profit before tax £43.2m £84.1m -49%
Basic earnings per share 8.8p 18.3p -52%
Diluted earnings per share 8.7p 18.0p -52%
Basic earnings per share before NRI 0.5p 18.3p -97%
Diluted earnings per share before NRI 0.5p 18.0p -97%
Interim dividend per share 2.88p 2.88p -%
*Constant Exchange Rates † Non Recurring Items (see note 4)
Operating highlights
• Profitable first half despite poor market conditions
• Strong action taken on the cost base
• Targeted geographic and discipline diversification of business continues
• 68% of gross profits generated from outside the UK
• 49% of gross profit generated from non Finance and Accounting disciplines
• 30% of gross profit generated from temporary placements
• £28.7m of cash generated from operations before NRI (2008: £70.5m)
• Strong balance sheet with net cash of £99.2m (2008: £22.3m)
• Interim dividend maintained at 2.88p
Current trading and outlook
• Market conditions remain weak
• Continuous actions to balance costs with activity levels
• Group headcount at June 3,702, down by 1,241 since start of year
• Signs of stabilisation in some markets
• Selective fee earner hiring in a number of locations
Commenting on the results, Steve Ingham, Chief Executive of Michael Page, said:
"While market conditions generally continued to weaken during the first half, the rate of decline in the UK, our largest country, and the Asia Pacific region has slowed, and gross profit in these regions in the second quarter, was at a level similar to that of the first quarter. We anticipate a challenging third quarter as we enter into the seasonally quieter summer period, both in Continental Europe, which was later into the downturn, and in the UK.
"We continue to adjust our headcount in response to market conditions, retaining our more experienced and stronger people. In the last twelve months we have reduced headcount by a third, largely through natural attrition, and with a lower cost base we have remained profitable in the first half of 2009. We remain confident that, with our strong balance sheet, leading brand and experienced management team, we can maintain our market presence, continue to gain market share and are well positioned for growth when economic conditions improve."