Recruiter reports banking slowdown
A financial services recruitment firm has reported a further weakening in the UK banking sector.
Michael Page International plc published its interim management statement relating to the period from 1 January to 31 March 2008, the first quarter of the financial year ended 31 December 2008.
For the first quarter of 2008, Michael Page reports a record quarterly group gross profit of £140.3m, an increase of 33.0 per cent (23.8 per cent) over the £105.5m recorded in the first quarter of 2007.
In the group’s largest region, Europe, Middle East and Africa (EMEA) representing 46 per cent of its gross profit, first quarter gross profit was £65.2m, an increase of 55.3 per cent (37.7 per cent) over the £42m recorded in the first quarter of 2007.
“With good activity levels, we continue to experience strong demand for talent across all countries and disciplines, with the exception of banking,” the firm said.
In the UK, representing 34 per cent of group gross profit, first quarter gross profit was £47.1m, an increase of 6.7 per cent over the £44.1m recorded in the first quarter of 2007.
“While it is not possible to quantify, our first quarter growth rate was affected by the early Easter break and a further weakening of the banking sector, which is also impacting some of our other disciplines that service banking clients,” according to the group.
Outside of these banking related areas Michael Page International reported good activity in job and candidate flow.
In Asia, the group’s businesses grew gross profit at 11 per cent, with China, including Hong Kong, continuing to grow strongly, offset by a slowing in its Tokyo business, where banking represents a higher proportion of the business.
Steve Ingham, chief executive of Michael Page International (LSE:MPI), said, “Whilst we continue to experience strong activity levels and demand for talent, in certain areas there are signs of more cautionary behaviour.”