Michael Page beats profits hopes

Michael Page International has provided investors with some cheer despite continued weakness in the banking and accountancy sectors.

The recruitment company, which has seen its profits plummet during the last three years as blue-chip companies focus on cost-cutting rather than expansion, said its results for the first half of 2003 were better-than-expected.

A strong end to the second quarter boosted first half profits to £11.1m (€15.7m) compared with £18m (€25m) last year. City analysts had forecast a halving in profits to around £9m (€12.7m) as staff freezes continued to take their toll.

The group, which employs more than 2,000 people in 16 countries, generates around half its revenues in the UK where turnover fell to £92.1m (€130m) from £105.8m (€150m) last time.

Revenues from finance and accounting, where demand for permanent staff has slumped with the economic slowdown, was 19% lower than the first half of 2002.

Marketing and sales revenues fell 14%, meanwhile, with other disciplines rising 2%.

Despite the generally upbeat statement, chief executive Terry Benson warned that it was still too early to say whether this was the start of a sustainable improvement in the company's fortunes.

He said: "We are continuing to manage the business on the basis that market conditions will remain stable but challenging for the remainder of this year."