Page sees upturn in City jobs

THE first signs of a recovery in the forlorn City jobs market emerged today as recruitment firm Michael Page revealed its revenues were beginning to improve.

The group, whose shares have climbed 89% in the past five months on suggestions of an upturn, said the end to the second quarter had been 'slightly better than anticipated'.

Revenue from its temporary and permanent work placements in the three months to the end of June were 5% ahead of the previous three months - the first quarterly increase for 12 months.

Pre-tax profits over the first half came in at £11.6m, 36% below the £18m seen last year but still ahead of the most optimistic forecasts in the Square Mile.

This was despite a one-off £3m property hit to reflect the empty spaces in the group's new 33,000 square foot office in Victoria House, Bloomsbury.

Chief executive Terry Benson said he was 'encouraged' by the performance and added that even firms in the battered telecoms and IT sectors were now ringing up to appoint new staff.

He said: 'We've had a couple of painful years so we'll take 5%. We don't know what the third quarter will be like - on the Continent it will probably be difficult - but I have to say the order book in the UK is as good as it has been all year. The City is still difficult, it has been one of the most difficult areas for some years, but even there, there is activity.'

Revenue in the UK fell £8.2m over the first six months to £43.7m with a 19% drop in finance and accounting and a 14% fall in revenue from marketing and sales positions. Benson said consumer companies were behind most of the second quarter improvement but added more people were willing to look for new jobs as economic conditions brighten.

Analysts have been forecasting full-year profits of £16.9m and Benson conceded the outcome would still depend on how markets in mainland Europe fare over the summer holiday.

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

Shares in the group, which hit an all-time low of 78 1/2p in March, climbed 13p to 160p. Shareholders will be paid an unchanged interim dividend of 1.1p.