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Last checked at 
5 Dec 2011 07:00
TRADING UPDATE
5 December 2011
On 10 October 2011, in our third quarter Interim Management Statement (IMS), we reported a slowing in our gross profit growth rates to 26.5% (21.8%*) against a backdrop of increasing levels of macroeconomic uncertainty. Since our IMS in October, markets have continued to weaken as the Eurozone crisis and the lowering of GDP forecasts worldwide have reduced client and candidate confidence levels. This increased uncertainty and lower confidence is affecting most areas of our business and, as a result, our gross profit growth rates for the last two months have slowed further to 16.0% (15.5%*). As markets weaken and become more unpredictable, our short-term visibility reduces, particularly in respect of permanent placements. We now anticipate that our full year pre-tax profits for 2011 will be marginally below the bottom end of the current range of analyst forecasts (£86.5m to £114.2m).
The table below sets out the year-on-year growth rates by region for October and November combined compared to the third quarter of 2011.
Gross Profit Growth rates | Oct/Nov 2011 | Q3 2011 | |||
| % of Group | Reported | Constant | Reported | Constant |
Europe, Middle East and Africa | 45% | +18.5% | +18.0% | +30.8% | +23.2% |
United Kingdom | 22% | +1.2% | +1.2% | +0.3% | +0.3% |
Asia Pacific | 19% | +25.6% | +21.3% | +44.0% | +35.2% |
Americas | 14% | +23.8% | +27.9% | +48.3% | +46.9% |
Group | 100% | +16.0% | +15.5% | +26.5% | +21.8% |
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Permanent placements | 79% | +17.2% | +16.9% | +28.4% | +23.7% |
Temporary placements | 21% | +11.4% | +10.4% | +20.0% | +15.0% |
We continue to react and manage the business as we have in previous periods of economic slowdowns, adjusting our headcount to reflect market conditions and continuing to invest where we have opportunities for longer term growth.
Our next trading update will be our fourth quarter and full year trading update on 11 January 2012.
Enquiries:
Michael Page International plc | 01932 264144 |
Steve Ingham, Chief Executive |
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Stephen Puckett, Group Finance Director |
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FTI Consulting | 020 7269 7291 |
Richard Mountain / Nick Hasell / Sophie Moate |
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The company will host a conference call for analysts and investors at 8.00am today.
The dial-in details for the conference call are as follows:
Dial-In: +44 (0)20 7784 1038PIN Code: 184494The recording of the call will be available on the company's website later today at:
http://investors.michaelpage.co.uk/presentations
Cautionary statement
This Trading Update has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The Trading Update should not be relied on by any other party or for any other purpose. This Trading Update contains certain forward-looking statements. These statements are made by the directors in good faith, based on the information available to them up to the time of their approval of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.
This Trading Update has been prepared for the Group as a whole and therefore gives greater emphasis to those matters which are significant to Michael Page International plc and its subsidiary undertakings when viewed as a whole.
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