Michael Page Third-quarter Gross Profit Edges Up, Warns On Q4; Shares Fall

(RTTNews) - Recruitment firm Michael Page International Plc. (MPGPF.PK, MPI.L) Monday reported a marginal increase in third-quarter gross profit in a traditionally weaker period, while it cautioned a challenging fourth quarter. The company, however, sees an increase in operating profit for the full year. The shares are down about 7 percent in the morning trade on the London Stock Exchange.

The company also announced the appointment of Kelvin Stagg as acting chief financial officer.

Looking ahead, Steve Ingham, chief executive officer of the company stated, "Although we have limited visibility, we expect Q4 to be another challenging quarter, with difficult conditions likely to continue in some markets, but with gradual improvements in others."

For the full year ending December 31, 2013, the firm expects operating profit to be around 68 million pounds. For 2012, Michael Page had posted operating profit of 57.3 million pounds, and operating profit before exceptional items of 65.1 million pounds.

Michael Page said it saw increasing growth rates in constant currency in all of its regions and key disciplines during the third quarter.

In an interim management statement, the company said its gross profit for the quarter totaled 127.0 million pounds, up 0.4 percent in reported currency, and down 0.2 percent on a constant currency basis.

In Europe, Middle East and Africa or EMEA, the firm's largest region, gross profit decreased 0.9 percent to 48.5 million pounds, and the region represented 38 percent of Group gross profit in the quarter. Market conditions remained challenging, but with further signs of improvement, the company said.

UK's gross profit rose 5.0 percent to 31.0 million pounds that represented 24 percent of the Group's gross profit. In the Americas, gross profit climbed 13 percent to 20.2 million pounds.

Permanent recruitment constituted 76 percent of gross profit and totaled 96.8 million pounds, a decline of 0.8 percent from the prior year. Meanwhile, gross profit from temporary recruitment grew 4.4 percent to 30.2 million pounds.

Separately, PageGroup announced the appointment of Kelvin Stagg as its acting chief financial officer following Andrew Bracey's resignation on October 11.

Stagg, who has been with PageGroup since July 2006, most recently occupied the position of Group finance controller and company secretary. Earlier to joining PageGroup, he spent six years at Allied Domecq and three years at Unilever in various finance functions.

The company is scheduled to issue its fourth quarter and full-year trading update on January 14.

MPI.L is currently trading at 461.6 pence, down 32.9 pence or 6.65 percent on the LSE.