Michael Page International says it expects “a significantly improved performance” in 2010.  However, the UK “remains challenging” and is likely to miss out on the recovery in the rest of the group.

Despite reporting a 23% fall in profits across the group in the fourth quarter to £90.6m, the company says it expects to benefit from its lower cost base and its operational gearing.

Last year’s Q4 group gross profit was 10.1% higher than Q3 2009 at £90.6m. However, in comparison UK Q4 gross profit fell 2.8% to £26.5m.

Full-year group gross profit was 36.4% lower at £351.7m.

The group headcount of 3,549 at 31 December 2009 was 28% lower than 12 months previously, though the company says it is not planning further reductions and has begun selective hiring.

As of 31 December, the company held net cash of around £138m.

Steve Ingham (above), chief executive, says: “I am delighted with our performance in Q4 with gross profit up 10% on Q3 at £91m and almost the same operating profit in Q4 as we produced in the previous nine months of the year. Last year was one of the most challenging years in the group’s history, during which we have had to significantly reduce our cost base.

“However, in doing so we have retained all our key people, maintained our presence in all the markets in which we operate and invested modestly in expanding into new markets. As a result, with the increase in market share, which we believe we have gained, with our broader platform and existing available capacity, we are well positioned to benefit from any improvement in economic conditions.

“We have built on the stabilisation we started to experience during the third quarter and in all our main markets, save for the UK, we have delivered sequential gross profit growth in the fourth quarter.

“While we believe the outlook for the UK remains challenging, we anticipate a continuation of the recovery in our other regions, which now account for 70% of our gross profit. With the benefit of our lower cost base and our operational gearing, we expect a significantly improved performance in 2010.”