Bank cuts hurting Page

Cutbacks in the financial sector and the struggling European economy dented second-quarter profits at recruitment firm Michael Page International.

The firm said yesterday that gross profits for the three months to June were 6.6 per cent lower than a year ago at £138 million, against tough comparisons.

With banks taking on fewer staff, the sector contributed just 8 per cent to group profits, down from 11 per cent a year ago. Earnings from its financial division dipped 12.7 per cent, pushing UK profits lower. But chief executive Steve Ingham said the firm was investing in growth areas and countries with “long-term potential”, and had opened offices in Brazil and South Africa in the last quarter.

“We anticipate a challenging third quarter as we enter the quieter summer period in Europe and the UK, against tough comparables and a backdrop of economic uncertainty,” he said.

But he added: “We remain well-placed to take advantage of any recovery in the markets in which we operate.”