Michael Page International reports a decline in gross profit for Q4 (down 7.3% to £118m) and has cut its headcount by more than 10%.

However, announcing its fourth quarter results to the City, Steve Ingham, the group’s chief executive, says the international recruiter has reported a record annual gross profit of £552.7m, up 5.8% on 2007.

But the last quarter was particularly gloomy for the group with decreases in gross profit across all of its regions (for example, UK -19.7%, EMEA -3.4% and Asia Pacific -16.4%).

Permanent gross profit, which represents 73% of the group, fell by 13% over the quarter, but temporary gross profit rose by 12.6%.

Ingham says the 509 cut in headcount in Q4 to 4,943 was largely from natural attrition, “without the need to incur high restructuring charges”. However, he says there would be more staff cuts if the market continued to worsen. 

“The loss of confidence in the economy has noticeably spread to virtually every sector and geography. However, while there are tougher expectations we recorded in the region of £140m in pre-tax profit for the year [£147m in 2007]. 

“Market conditions in the financial services sector have become particularly challenging in the UK. However, our experience in balancing brand and profit share creates a fantastic opportunity to grow marketshare as weaker competitors fall by the wayside. We have reacted quickly to changing market conditions and we have built a platform for quick and rapid recovery in 2009. The new disciplines of engineering & manufacturing, procurement & supply chain and property & construction grew by 12%.

“The group’s record performance is testament to our strategy of diversification through organic growth. Our strong profit and cash generation during the year leaves the group with a strong balance sheet and in a position to continue to pursue our longer term objectives,” he adds.

Ingham adds that the fact that an increasing amount of the group’s trade is not done in pounds, which is weakening, has sheltered it from some of the effects of the downturn.