Michael Page Profit Climbs, But Stock Down

(RTTNews) - Recruitment firm Michael Page International Plc. (MPGPF.PK, MPI.L) Wednesday reported growth in its first-half profit before tax. The company also expects to perform for the year in line with market expectations.

Michael Page said adverse forex continues to impact its results at reported rates. Consequently, the stock was down 3 percent in early morning trade.

Pre-tax profit rose to 35.56 million pounds ($59.8 million) from 32.02 million pounds in the prior year.

Profit attributable to owners of the parent increased to 23.47 million pounds or 7.5 pence per share from 21.45 million pounds or 7.0 pence per share in the year-ago period.

Revenues rose 1.8 percent to 512.22 million pounds from 503.25 million pounds in the preceding year. The growth was 8.3 percent at constant exchange rates.

In EMEA, the Group's largest region, revenue grew 2.6 percent to 210.6 million pounds, amid mixed market conditions throughout the first half.

In the UK, revenue improved to 155.6 million pounds from 146.1 million pounds, with the UK recovery maintaining its steady momentum.

Conversion rate rose to 13.5 percent from 12.3 percent, reflecting the full run-rate of cost savings.

The board also declared an interim dividend of 3.42 pence per share, up 5.2 percent from last year, to shareholders of record on September 5, payable on October 3.

Looking ahead, the firm expects market conditions to remain challenging in Brazil and France, and to stabilise in Australia.

For the full year, if the current trend of improving growth rates is maintained and foreign exchange rates remain constant, it expects to perform in line with market expectations.

The stock was down 3 percent in early trading at 433.60 pence.