Insurance recruiter issues profit warning
UK-based Michael Page International, a recruitment firm for the insurance and financial services sector, has issued a profit warning for the fourth quarter.
The recruitment specialist said job cuts in the financial sector had been more severe than expected because of the recent global economic turmoil.
As such, the company’s services are in low demand in almost every industrial sector and geographical area that it operates.
Over two third of Michael Page’s profits are made outside the UK. It has a total of 170 offices spread across 28 countries.
The situation means that Michael Page now expects to make its own job cuts to reduce its cost base. By the end of 2008, the number of people employed at the company is anticipated to be 5,100, down 350 compared to the third quarter.
Profit for the year is expected to be around the bottom end of current analyst forecasts – £136 million, a fall of 8% on last year’s results.
Shares fell 13% to 167.5 pence following the announcement. Stock price is down 42% compared to the beginning of the year.
Category: Employment News, Insurance News
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