Michael Page (LSE:PAGE) reported operating profit of £9.7m for the six months to 30 June, up sharply from £2.1m a year earlier, even as group gross profit fell 2.4% in constant currencies to £385.2m.
The specialist professional recruitment company, recently rebranded from PageGroup, said around 50% of its markets returned to growth in the first half, with continued gains in Asia Pacific and the Americas and a return to growth in Southern Europe during the second quarter.
Conversion rate, the ratio of operating profit to gross profit, rose to 2.5% from 0.5% a year earlier, helped by lower one-off costs of around £2.5m tied to senior exits, against around £13m in the prior-year period. Gross profit per fee earner reached its highest level since 2022, up 3.7% year on year. The group moved to net debt of £7.2m from net cash of £10.8m a year earlier, which management said was in line with expectations. The board declared an interim dividend of 1.46p per share.
Chief executive Nicholas Kirk said the group "delivered a resilient performance in H1 despite ongoing challenging market conditions," though trading "remained more challenging across France, Northern Europe and the UK."
France's gross profit declined 13% and the UK fell 8.2%, while Page Executive delivered record growth of 8%.
The board continues to expect 2026 operating profit in line with company-compiled consensus of approximately £28m.
News Intelligence what this means for the company
Michael Page reported H1 operating profit of £9.7m, nearly 5× the prior-year £2.1m, driven by a sharp drop in one-off restructuring costs (£2.5m vs £13m a year ago) rather than revenue growth—gross profit fell 2.4%. The company reiterated its £28m full-year operating profit target, signalling confidence in H2 recovery, but regional weakness in France (−13% gross profit) and the UK (−8.2%) offset gains in Asia Pacific and the Americas.
The profit swing is real but heavily dependent on cost discipline rather than organic demand recovery. The board's repeated £28m FY26 guidance implies H2 must deliver ~£18.3m operating profit—a 90% jump from H1—which hinges on sustained regional stabilisation and no further restructuring charges. Execution risk remains material given ongoing headwinds in three of the group's largest markets.
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