Business

Michael Page shares hit after warning on profits

 

Recruitment firm Michael Page International has said lower confidence in the jobs market means it will miss analysts' profit forecasts this year.

Shares in the firm opened down 13% but recovered, closing down 5.2%.

The firm said increased uncertainty was affecting most areas of the business and slowing profit growth.

As a result, the firm said profits for 2011 would be "marginally below" the bottom end of market forecasts of between £86.5m to £114.2m.

"Since our statement in October, markets have continued to weaken as the eurozone crisis and the lowering of GDP forecasts worldwide have reduced client and customer confidence," the firm said.

Profits for the first six months of the year were £45.5m, down 26% on a year earlier.

In August, the firm warned that job losses in the banking sector, which accounts for about 10% of its business, were affecting profits.

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