Please ensure Javascript is enabled for purposes of website accessibility

Michael Page International's Profits Slump 7%

By Mark Rogers - Apr 16, 2013 at 7:25PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Michael Page International reports first-quarter gross profits of 127 million pounds.

LONDON -- The shares of Michael Page International (PAGE 0.36%) fell 6% to 374 pence during early London trade this morning after the mid cap revealed "tough economic conditions and weak market confidence" had contributed to a difficult first quarter.

Michael Page, the white-collar recruiter with offices in 33 countries, also warned that second-quarter trading conditions would remain challenging amid testing trading conditions.

The company, delivering its Q1 results, revealed a significantly weaker performance within its core European markets. Gross profits within the company's French and German permanent recruitment operations declined by 17% and 27%, respectively, while profits throughout the group's European, Middle East, and African operations dived 15%.

Responding to the weak first quarter, Michael Page announced that it had continued its cost-cutting measures and shed a further 57 jobs across the group.

Chief executive Steve Ingham claimed:

Overall, we have had a robust first quarter. However, to target our long-term growth and profit opportunities, we have continued to invest in our key growth markets of China, South East Asia, Latin America, Germany and, now, North America. We are also actively managing our operating cost base. Combined, these two will deliver long-term profitable growth to our shareholders.

With a market cap of 1.2 billion pounds, Michael Page trades at around 31 times 2012 earnings and offers a prospective dividend yield of 2.5%. The company's balance sheet also boasts net cash of 56 million pounds.

Of course, whether today's 6% share-price decline, the current valuation, and the general prospects for white-collar recruiters all combine to make Michael Page a "buy" is something only you can decide.

But if you already own shares in Michael Page and are looking for alternative investment opportunities, this exclusive wealth report reviews five particularly attractive possibilities. Indeed, all five opportunities offer a mix of robust prospects, illustrious histories and dependable dividends, and have just been declared by the Fool as "5 Shares You Can Retire On."

Just click here for the report -- it's free.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

PageGroup plc Stock Quote
PageGroup plc
$450.40 (0.36%) $1.60

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.