Analyst Views | Why is Michael page struggling?

 
Michael Bow
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MIKE VAN DULKEN ACCENDO MARKETS

Tough macro growth environment – struggling world growth, austerity impact, financial sector slowdown – is taking its toll on the recruitment sector. Headcount reduction is in place, and not just among clients. Broker consensus figures are set to be trimmed.

CAROLINE DE LA SOUJEOLE SEYMOUR PIERCE

The poor outturn is a reflection of Michael Page’s bias towards permanent placements, which saw an eight per cent reduction year on year. Michael Page has the highest exposure to permanent placements of all the stocks under our coverage.

MIKE MURPHY NUMIS

Management indicated that activity levels remain robust but the time to hire continues to push out, reflecting a lack of confidence from both companies and candidates in the current weak macro. There were signs of a relative stabilisation creeping in towards the end of the quarter.