We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedPeople Management

Michael Page group posts Q2 profits fall


The recruiter blamed weak economic conditions and the Libor-fixing scandal

Article comments

Hiring in the financial sector is unlikely to improve in the wake of the rate fixing scandal as a lack of confidence in banks and public outrage at bankers mounts, according to recruiter Michael Page International as it said its quarterly profits fell.

Michael Page International on Monday posted a slip in quarterly profit due to the crisis in the euro zone.

Like many recruiters, the recruitment group, which places people in accounting, financial and legal jobs across 35 countries, is battling a slowdown in markets as clients hold off on hiring or moving jobs in light of unstable economic conditions.

The banking sector has been particularly hit and forced to cut staff.

"Banking is tough, no surprise. Let us be real, the headlines over the last few weeks, they do not help," chief Executive Steve Ingham told Reuters on Monday.

A scandal over the rigging of a key interest rate has reignited public anger over the banking sector, which many people blame for sending the economy into a recession from which the country is struggling to emerge.

Such resentment may harden political resolve to tighten regulatory controls on the sector, which could crimp profits.

"I think it is fair to say that the more negative the headlines, the less (banking) recruitment is going on generally," Ingham said.

Michael Page posted a second-quarter gross profit of £138 million, 6.6 percent below what was its second-highest quarter on record in the same period in 2011, but 1.6 percent up on the quieter first quarter of 2012.

Its shares, which have shrunk from a 2012 high of 505 pence set in March, were down 4.5 percent at 348.1 pence by 0922 GMT.

While it expected full-year operating profit to be broadly in line with market estimates, the group said its third quarter was likely to be challenging, as euro-zone issues, austerity measures and high unemployment figures hit customer confidence and combine with its seasonally quieter holiday period.

Last week rival recruiter Robert Walters posted a 3 percent dip in second-quarter gross profit as slow banking markets hit its core Asia Pacific market.

Share:

Comments

Michael Page group posts Q2 profits fall
People Management

Finance skills evolve as the recovery takes hold

Finance skills evolve as the recovery takes hold

Finance teams need to learn soft skills as corporate priorities evolvemore ..


ITV group FD to join DS Smith board

Ian Griffiths to take up non-executive director role at packaging companymore ..

Unemployment falls to five-year low

Headline rate of unemployment at 6.9% as wages rise above inflation ratemore ..

Microsaic Systems appoints new FD

Andrew Darby to succeed Malcolm Batemanmore ..

Do you have what it takes to become a non-executive?

The benefits of board service for CFOsmore ..

How level is the playing field for women in business?

Vince Cable moots women-only shortlists just ahead of international women’s daymore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..

Advertisement

* *