Long-term growth takes time to pay

Elizabeth Fournier
IT’S becoming a familiar story by now. Recruiters who built their businesses by focusing on the UK and its once lucrative financial services sector are having to turn their back on the past in search of growth pastures new.

Michael Page’s results only cement the increasingly downbeat picture of City jobs – financial services is the only sector that hasn’t picked up since the start of the year, and the UK generates four per cent less in revenues for the firm than it did in 2010.

The inevitable flip side is overseas growth, and Michael Page certainly seems hungry for a slice of emerging markets pie, opening 19 new offices and moving into three new countries during 2011. Its Asian and Americas revenues are growing nicely as a result but investment comes with inevitable costs, and shareholders will be looking for benefits to start filtering through soon.

Though shares fell yesterday they’ve been riding high recently. We don’t think the value is there yet.