Page hit by 36m VAT repayment
MICHAEL Page said yesterday it has been hit with a £37.4m bill from the Inland Revenue, which the taxman had originally handed over to the firm as a part settlement of an alleged overpaid VAT bill.
The firm, which had £138m in net cash at the end of September, said it would appeal against the tax ruling.
“It could be that we end up retaining it, it could be (we) end up paying it back or just part of it,” said Michael Page’s chief executive Steve Ingham.
Analyst Henry Carver at KBC Peel Hunt said the possible repayment posed little difficulty as it did not constitute cash needed for operations.
“It almost credits the management to show that kind of figure can be dealt with at this kind of stage in the market,” he said.
The country’s second-largest recruiter also reported a 45 per cent drop in third-quarter gross profit, but said it was beginning to see signs of stabilisation especially in Germany.
The FTSE 250 company, which specialises in placing professional staff, reported a gross profit of £82.2m in the period, down 42 per cent on last year or 45 per cent at constant currencies.
Michael Page, which cut headcount by 4 per cent during the period, said it was not planning further job cuts in most markets and said hiring picked up in Britain in September.