Michael Page Q1 Gross Profit Up 7.2%

(RTTNews) - Recruitment firm Michael Page International plc (MPI.L, MPGPF) reported Tuesday increased gross profit for the first quarter, reflecting continued growth in all four operating regions. However, currency continued to have an adverse impact on results.

The company also said it expects to see similar trends in market conditions prevailing across major regions, with currency continuing to have a significant negative impact on results.

"The 10.9% increase in the Group's gross profit in constant currencies for the first quarter reflects continued year-on-year growth in all four regions. Our three largest regions of EMEA, UK and Asia Pacific all saw stable growth rates compared to those in the fourth quarter," CEO Steve Ingham said in a statement.

Total gross profit for the quarter increased 7.2 percent to 135.6 million pounds ($213.2 million) from 126.6 million pounds in the prior-year quarter.

The growth was 10.9 percent on a constant currency basis, with positive contributions from all four regions. Michael Page noted that forex headwinds lowered reported figures by about 3.7 percent or 4.8 million pounds.

Group gross profit from permanent recruitment grew 7.6 percent to 105.1 million pounds, and temporary recruitment gross profit improved 5.8 percent to 30.5 million pounds. In constant currencies, permanent recruitment climbed 10.9 percent, and temporary recruitment was up 11.0 percent.

The U.K. saw a 11.3 percent increase in gross profit to 36.5 million pounds from a year ago. EMEA gross profit grew 2.6 percent to 54.0 million pounds from last year, and it improved a strong 12.1 percent in constant currencies.

Asia Pacific recorded a 12.3 percent growth in gross profit to 25.8 million pounds, and the increase was 10.8 percent on a constant currency basis.

Gross profit in the Americas grew 6.7 percent or 7.1 percent in constant currency, to 19.3 million pounds from a year ago. However, the growth rate moderated sequentially due to demanding comparatives in the US and worsening conditions in Brazil.

Total headcount increased by 102 in the quarter to a record 5,680, with some temporary additions in operational support staff to progress key strategic projects.

Additionally, the company has proposed final dividend for 2014 of 7.58 pence per share, to shareholders of record on May 22 implying a full-year dividend of 11.0 pence per share.

Looking ahead, the company said it expects to see similar trends in market conditions prevailing across major regions. Sterling remains strong and this continues to impact the company's results. The company sees a significant negative currency impact on its 2015 results.

"We remain focused on productivity and we continue to expect our reported Group conversion rate to improve at a similar rate of growth as that seen over the past couple of years. This early in the year, and with the level of visibility we have, the Board continues to believe the performance for the year will be in line with its expectations," Ingham added.

In Tuesday's regular trading session on the LSE, MPI.L is currently trading at 543.50 pence, down 5.00 pence 0.91% on a volume of 0.10 million shares.