Financial recruiter Michael Page has increased its profitability despite challenging market conditions, but has warned that its short-term future is reliant on an international economic recovery.

According to results published today, Page finished the year ending 31 December with profits increasing by 1.9% from £239.7m in 2000 to £244.2m in 2001.

Operating profit declined from £82.5m in 2000 to £64.1m because of investment in new staff and offices, but pre-tax profits grew 3.5% to £60m.

Chief executive Terry Benson said: ‘Michael Page has produced a satisfactory performance in a difficult market and a challenging year, particularly during the second half.

‘Whilst the short-term outlook remains difficult, the volatility of the specialist recruitment market and its exposure to international economic conditions is well understood, and the outcome for the remainder of this year will be greatly influenced by these external factors.’