PageGroup Regulatory News (PAGE)

9 July 2012

Q2 AND FIRST HALF 2012 TRADING UPDATE

Financial Summary

·; Group Q2 gross profit of £138.0m (£144.3m at constant rates of exchange*), 1.6% above (+3.7%*) Q1 2012 and 6.6% below (-2.4%*) Q2 2011

·; Group H1 gross profit of £273.9m (£281.2m*), 0.4% below (+2.2%*) H1 2011

·; EMEA (42% of Group) Q2 gross profit of £57.7m (£62.5m*), 4.4% below (-2.0%*) Q1 2012 and 10.1% below (-2.5%*) Q2 2011

·; UK (23% of Group) Q2 gross profit of £31.1m, 1.7% above Q1 2012 and 9.2% below Q2 2011

·; Asia Pacific (22% of Group) Q2 gross profit of £30.5m (£30.2m*), 16.2% above (18.6%*) Q1 2012 and 12.5% above (11.2%*) Q2 2011

·; Americas (13% of Group) Q2 gross profit of £18.7m (£20.4m*), 0.1% below (+4.9%*) Q1 2012 and 16.0% below (-8.3%*) Q2 2011

·; Q2 Permanent gross profit (79% of Group) of £109.5m (£114.5m*), 2.8% above (+5.0%*) Q1 2012 and 7.6% below (-3.4%*) Q2 2011

·; Q2 Temporary gross profit (21% of Group) of £28.5m (£29.8m*), 2.9% below (-1.1%*) Q1 2012 and 2.7% below (+1.6%*) Q2 2011

·; Headcount: 5,321 at 30 June 2012, up 35 (0.7%) since the start of the year and up 12 in Q2 2012

·; Offices: 2 new offices - Cape Town, in South Africa and Macaé, in Rio de Janeiro, Brazil

·; Shares: 2.6m (0.8% of issued share capital) purchased into the Employee Benefit Trust during the second quarter at a cost of £9.4m

·; Dividend: £20.8m final for 2011 (6.75p per share) paid in June 2012

·; Net cash at 30 June 2012 in the region of £32m (£62.5m at 31 March 2012)

* Denotes where overseas results denominated in foreign currencies have been translated at constant rates of exchange for constant currency illustrative purposes.

Commenting on Q2 trading, Steve Ingham, Chief Executive said:

"Despite tough market conditions throughout the second quarter of 2012, the Group delivered a 4% increase in gross profit compared to the first quarter. Against last year, gross profit was down 2% against a tough comparator, with Q2 2011 having been our second highest quarter on record, with a growth rate of 32%.

"We continue to invest in growth areas and geographic diversification where we believe there exists long-term potential, with the opening of an office in Cape Town, in South Africa and a further office in Macaé, Rio de Janeiro, in Brazil, adding to the offices in Taipei, Suzhou, Bogota, and Casablanca opened during the first quarter.

"Our headcount has adjusted to reflect market conditions, increasing in areas where we have growth, principally Asia and our newer businesses, as well as reducing in other areas, largely from natural attrition; this resulted in headcount remaining broadly flat quarter-on-quarter.

"It is key from our perspective to manage the cost base, principally headcount, to reflect market conditions, whilst investing to create a platform for greater growth when markets improve. We believe strongly that we have the balance right and the business remains profitable throughout all our major markets, apart from new start-ups.

"We anticipate a challenging third quarter as we enter the seasonally quieter summer period in Continental Europe and the UK, against tough comparables and an ongoing backdrop of economic uncertainty. The Group is financially strong, with net cash in the region of £32m. We remain well-placed to take advantage of any recovery in the markets in which we operate. At this time, we expect our half and full year operating profit from trading activities to be broadly in line with current market estimates. This operating profit does not include any restructuring charges due to recent regional management changes."

Enquiries:

The company will host a conference call for analysts and investors at 8.30am today. The live presentation can be viewed by following the link:

http://event.on24.com/r.htm?e=485564&s=1&k=CC376022B9854444D9EC8A50DC8CFE45

The dial-in details for the conference call are as follows:

Dial-In: +44 (0)20 3140 0668

PIN Code: 258397 followed by #

The presentation and recording of the call will be available on the company's website later today at:

http://investors.michaelpage.co.uk/presentations

The Group will issue its interim results on 13 August 2012.TRADING UPDATE

Michael Page International plc (MPI), the specialist recruitment consultancy, reports second quarter Group gross profit of £138.0m (£144.3m at constant rates of exchange*) (Q2 2011: £147.8m), an increase of 1.6% (+3.7%*) on Q1 2012 and a decrease of 6.6% (-2.4%*) on Q2 2011. Group headcount increased by 12 (0.2%) in the quarter to 5,321 at the end of June 2012. Gross profit in the first half of 2012 was £273.9m (H1 2011: £275.1m), a decrease of 0.4% (+2.2%*) on the £275.1m in H1 2011.

Perm/Temp mix

Group gross profit from permanent recruitment in the second quarter was £109.5m (£114.5m*), an increase of 2.8% (+5.0%*) on Q1 2012 and decreased by 7.6% (-3.4%*) on the £118.5m in Q2 2011. Group gross profit from temporary recruitment in the second quarter was £28.5m (£29.8m*), decreased by 2.9% (-1.1%*) on Q1 2012 and decreased by 2.7% (+1.6%*) on the £29.3m in Q2 2011.

The perm/temp gross profit ratio in the second quarter was 79:21, flat on Q1 2012 (Q2 2011: 80:20).

Discipline analysis

The Group continues to benefit from its discipline diversification, with more recently launched disciplines growing at faster rates as they continue to be introduced across the Group's country and office network. The continued global slowdown in the financial services sector has impacted further on our Banking businesses, which now represent 8%* of Group gross profit, down from 11%* in Q2 2011. Our latest disciplines of Engineering, Property & Construction and Procurement & Supply Chain now produce 20% of the Group's gross profit, with our new Oil and Gas businesses performing well due to a strong commodities sector.

Geographical analysis

In our largest region, Europe, Middle East and Africa (EMEA), representing 42% of Group gross profit, market conditions remained challenging. Economic uncertainty, increasing austerity measures and levels of unemployment across Southern Europe further impacted market confidence. Second quarter gross profit was £57.7m (£62.5m*), 4.4% below (-2.0%*) Q1 2012 and a decrease of 10.1% (-2.5%*) on the £64.1m recorded in the second quarter of 2011. The weakening of the Euro, relative to sterling, has impacted the results of the Eurozone countries, with year-on-year growth rates at constant rates of exchange some 8% higher than in reported.

Germany grew year-on-year, with gross profit up 15% against a strong prior year comparator. Our business in France was impacted by the uncertainties surrounding the French elections and the wider Eurozone issues, but was nevertheless up 1% on Q1 2012. The fourteen countries that comprise the Rest of EMEA represent 10% of the Group's gross profit and collectively they grew by 2%* against Q2 2011. Headcount across the region decreased slightly during the quarter by 8 (-0.4%) to 2,185 and we opened our second office in South Africa, in Cape Town.

In the UK, representing 23% of Group gross profit, second quarter gross profit was £31.1m, an increase of 1.7% on Q1 2012 and a decrease of 9.2% on the second quarter of 2011. Trading conditions remain tough, particularly in our Banking business. While we anticipate that the UK market will remain challenging and the financial services sector difficult, several other businesses, particularly the more technical disciplines, continue to grow and this is reflected in our headcount, which remained broadly flat during the second quarter at 1,243.

In Asia Pacific, representing 22% of Group gross profits, second quarter gross profit was a record £30.5m (£30.2m*), 16.2% above Q1 2012 and an increase of 12.5% (11.2%*) over the £27.2m recorded in the second quarter of 2011.

In Australia and New Zealand, second quarter gross profit was 13%* above Q1 2012, with particularly strong performances from Western Australia and Queensland, benefiting from the strength of the mining and commodities sector. Our Page Personnel business in Australia is also performing well.

In Asia, second quarter gross profit was 17%* higher year-on-year against Q2 2011, despite the ongoing weakness in the Financial Services sector continuing to impact our growth in Tokyo, Hong Kong and Singapore. Our newer businesses in Malaysia and India are progressing well, as are our newest offices in Taipei and Suzhou. Headcount across the region grew by 43 (4.3%) in the quarter to 1,050, with the majority of the additions in Asia.

In the Americas, second quarter gross profit was £18.7m (£20.4m*), flat (+4.9%*) on Q1 2012 and a decrease of 16.0% (-8.3%*) over the £22.3m recorded in the second quarter of 2011.

In Latin America, gross profit was down 9%* year-on-year, but 4% above Q1 2012. In Brazil, where we are the clear market leader with approaching 400 employees and where the economy has slowed compared to H1 2011, our activity levels and results are stable. Our other businesses in Latin America are growing strongly and accordingly we have also invested in additional headcount in Mexico, Argentina and Chile to further enhance our market leading positions. Colombia, our newest country in Latin America, which opened at the start of 2012, has already recorded a small monthly profit. We also opened in Q2 an additional office in Macaé, Rio de Janeiro, to invest further in our growing global Oil and Gas business. The Brazilian Real has weakened against Sterling compared to H1 2011, with year-on-year growth rates at constant rates of exchange some 8% higher than in reported.

In North America, we were impacted by the difficulties in the financial services sector. However, our newer offices in Houston and San Francisco performed well. We have strengthened the management team in the region and expect to benefit from this in the future. Headcount across the region remained broadly flat at 843.

Share repurchases

During the second quarter, the Employee Benefit Trust purchased 2.6m shares (0.8% of share capital) at a cost of £9.4m (an average price of 363.5p per share). At 30 June 2012, there were 317m shares in issue and 23m options were outstanding.

Financial Position

Save for the effects of trading in the second quarter described above, £9.4m share repurchases into the Trust and the payment of a final dividend of £20.8m for 2011, there have been no other significant changes in the financial position of the Group since the publication of the results for the year ended 31 December 2011.

Net cash at the end of June 2012 was in the region of £32m (£62.5m at 31 March 2012).

The Group will issue its interim results for the six months ending 30 June 2012 on 13 August 2012 and its third quarter Interim Management Statement on 8 October 2012.

Cautionary statement

This Second Quarter 2012 Trading Statement 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 Statement should not be relied on by any other party or for any other purpose. This Trading Statement 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 Statement 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.