Michael Page slumps as Brexit fears mean executives stay put

UK headhunter Michael Page earned lower fees in its last quarter after City bigwigs got cold feet over moving jobs due to Brexit uncertainty.

The recruiter, a division of PageGroup, said fears over the October deadline had forced many senior executives to hold back.

“You have to make pretty sizeable offers if you want a senior candidate to move. Some candidates who are not that taken with the job use it as an opportunity to get a pay increase. I don’t think that’s going to change until we get certainty,” said PageGroup finance chief Kelvin Stagg.

PageGroup shares dived 15% after it warned operating profits would be at the low end of expectations due to sluggish business confidence in Europe.

Operating profits are likely to be closer to £156 million, below the £161 million expected. UK fees for Michael Page fell 6%.

UK gross profit in the UK, which accounts for 16% of the group, dropped 2.4% to £35 million for the second quarter.