Michael Page, one of the leading brand names in UK recruitment, gave the industry a boost this week by claiming it will beat analysts’ expectations for the year.

Chief executive Terry Benson said that third-quarter revenues had matched those achieved in the second quarter.

Gross profit in the third quarter was £45m, the same as in the second quarter, but slightly lower than the third-quarter figure from last year of £47.8m.

It was a bold move and indicates a new confidence within the industry following several years of lacklustre trading.

Paul Jones, support services analyst at Numis investment bank, said: “The announcement was certainly unexpected.

“Many recruiters had been quietly confident but were cautious after last September, when there was something of a false dawn.”

Jones said the results pointed towards a period of stronger trading and added that skills shortages could push fees up.

“Many talented candidates have decided they’ve earned their money and have gone off round the world – only a small increase in demand could drive prices up.”

The fortunes of Michael Page contrast with those of Robert Walters, which said in September that profits were slipping. But Jones attributed this to the fact that Robert Walters operates in different markets which will recover later.

Page’s businesses in the UK, Asia, Pacific and America have performed well in recent weeks, Jones added, but trading conditions in continental Europe remained tough.