UK recruiter Michael Page returns to profit growth after four-year slump

By Nithyashree R B

Oct 13 (Reuters) - British recruiter Michael Page returned to profit growth after four years of declines, and its CEO expects the recovery to last into 2027 on strong hiring across US construction and Asian markets.

Recruiters have been grappling with a weak jobs market across Europe as tariffs, political uncertainty and higher energy prices make employers cautious.

However, pockets of strength in the US, Japan, China and India helped Michael Page post a 1.5% increase in third-quarter gross profit.

US STAGES RECOVERY

CEO Nicholas Kirk told Reuters white-collar hiring recoveries tend to come in three stages: confidence improves, more job offers turn into hires, then jobs and interviews rise.

Kirk said the US, where white collar-focussed Michael Page has grown for eight consecutive quarters, was at the final stage of this cycle.

EUROPE LAGS

Britain, Germany, and Northern Europe were still at the first stage. "Things feel better, but they're yet to move into that turning into improved results. But I would expect that to happen next," the CEO said.

Michael Page has been raising consultant headcount in the US, Japan and India, while reducing it in France, Germany and Britain.

In Europe, its largest region, gross profit fell 7% in Germany and 11% in France. Americas gross profit jumped 8.9% in the quarter, driven by US construction and manufacturing. Asia Pacific grew 14.7%.

Michael Page's overall group gross profit came in at £190.5 million ($252 million) in the quarter ended September, beating a company-compiled consensus of £187.9 million. The firm retained its annual profit outlook.

Improved trading was driven by clients and candidates becoming more willing to negotiate job offers, the company said.

Its shares fell 4% by 0850 GMT after briefly trading higher in early morning trade.

Larger rival Hays on Monday reported its 14th-consecutive quarterly fall in net fees on Germany and UK weakness.

($1 = 0.7559 pounds)

(Reporting by Nithyashree R B in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala)