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City recruitment giant Michael Page saw profits in the past three months slump by 45% compared with the same period last year as unemployment soared.
Chief executive Steve Ingham said the business was planning for a “challenging third quarter” in the quieter summer period, particularly in the UK and Continental Europe.
Page has slashed its total headcount by a third in the past 12 months to 3700, with more than 600 jobs gone in the UK.
Ingham said most of the jobs had gone through natural attrition, and the lower cost base had ensured the group stayed profitable.
The UK was the first country within the recruitment group to go into recession and, while it may not yet be coming out, Ingham said the rate of decline in recruitment was slowing.
Ingham added: “The jobs we are handling now have a much greater certainty of turning into revenue than they did earlier in the cycle when people were cancelling or ordering a freeze on recruitment.
“Similarly banking, which went down first, seems to be recovering first but it's only relative.”
Gross profit fell to £83.8 million in the three months to the end of June.
This compares with a first-quarter fall of 32% to £95 million on the same period last year.
Thanks in part to a VAT refund the group has cash of £95 million by the half-year end.
Reader views (9)
Might I just point out to Derek that as a recruitment consultancy it IS a legal requirement to be able to prove that your candidate is eligible to work in the UK. I do not work for Michael Page and am not the greatest fan of their ethics, however I do sympathise on this front as there is a lot of information that you need to ask candidates for, and agencies that are not checking all of this are not doing their job properly. That said, I would explain this to a candidate in full whilst booking a meeting with them and would never demand this information before speaking to a prospective candidate.
- Undecided, London UK, 13/07/2009 16:58
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Michael Page... It's time to get the broomstick and mop out. We all know WHERE that goes.
- Short And Concise, Edinburgh, 08/07/2009 09:00
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Chin up!!!
- P Loffree, London, 07/07/2009 17:45
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Glad we all agree 
Would you believe, as a recruitment professional who has worked for some very large agencies (thank goodness I've left that industry now!!), the Michael Page consultant asked me in an interview to sell him a glass of water ...this was to test my sales skills. Oh dear.
- Not A Fan, Surrey, 07/07/2009 15:41
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I have never heard anyone say anything good about them. My personal experiences of them as a client and a candidate were not good. Still they survive. Somebody must love them.
- Paul, Kent, 07/07/2009 15:26
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Very true, They ignore ACCA qualifieds and look after the ACAs, completely up themselves and see themselves as superior to other agencies. Welcome back down to earth guys
- Matt K, Bromley, 07/07/2009 14:42
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Not A Fan's comment reminded me of when I attempted to use them to find a new job a few years back. They responded to receiving my CV by asking me to send a photocopy of my passport and a load of other identity documents claiming it was a 'legal requirement'. I told them to get lost and got a job through another agent who, needless to say, didn't require a load of personal data beyond the contents of my CV before they'd talk to me. Idiots.
- Derek, London, 07/07/2009 14:15
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Couldn't agree more. Had one Consultant spend the entire initial interview telling me how succesful he was. So I reacted in a playground fashion by pointing out I was more successful than him as had just bought a rolex and was wearing a far better suit than him.
- Jfk, UK, 07/07/2009 14:03
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Good. Having been in the recruitment industry as a recruiter AND as a candidate I have never known what on earth makes Michael Page successful. They are arrogant, unable to get back to candidates on time - or treat them with respect, and only have their name to rely on. Service levels - whether you are a candidate or their client are terrible. Good riddance.
- Not A Fan, Surrey, 07/07/2009 11:56
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