Earnings statements from several recruiters this week showed
a broad increase in profits or net fees, with the exception of those heavily
exposed to the construction sector and British public-sector jobs.
Hays said net fees in Asia grew 59 percent, offsetting a
weak performance in Britain, while rival Michael Page said earnings in Asia
Pacific climbed 88 percent.
Both companies said they would continue to expand outside
Europe in their best-performing markets, with Michael Page looking to open more
offices in Latin America, Asia and the Middle East in the coming year.
“In those situations we will continue to have new job
creation as well as churn, you’ll get a combination of both in those (emerging)
markets,” Michael Page Chief Executive Steve Ingham told reporters on Thursday.
Analysts at Panmure Gordon left their recommendations for
both companies unchanged with a “hold” rating for Michael Page and a “buy” for
Hays.
Robert Walters, which places people in finance, accounting
and legal jobs, said on Wednesday its third-quarter gross profit was up 65
percent on last year, with a steep 92 percent rise in earnings in Asia, where
it recently expanded into South Korea.
Michael Page shares were down 3.8 percent to 460.1 pence,
while Hays stock shed 2.2 percent to 115 pence at 1041 GMT. Robert Walters was
up 1.1 percent.
Hays said net fees from its British business saw a modest
increase of 1 percent, dragged down by a decrease in net fees of 34 percent in
public-sector job placements, as a result of the coalition government’s
spending cuts.
Finance director Paul Venables said Hays’ core public-sector
markets of health and education were resilient and the dip paled in comparison
with the massive hit the company took during the 2008 financial crisis.
“We’ve taken a lot of pain already in those areas, I’m sure
there is more to come in public sector for us, but we’re a long way down that
road,” Venables told reporters on Thursday.
Smaller rival Matchtech, which specializes in finding jobs
for people in construction and engineering in Britain, said full-year pretax
profit was down 24 percent because of uncertainty in the public sector and the
British economy.
