Michael Page

Recruitment concern Michael Page International (MPI) has reported a slowing in its growth amidst what it calls 'unpredictable' markets.

In a trading update for the last two months the fully-listed concern warned it expects full year profits to be 'marginally below' the 'bottom end' of analyst forecasts that range from £86.5m to £114.2m, blaming the 'increasing levels of macroeconomic uncertainty' in a period in which the gross profit growth rates slumped from 21.8% to 15.5%.

The Surrey-headquartered venture added that with weakening and 'unpredictable' markets its 'short-term visibility reduces' particularly in the area of permanent placements. In the October/November period the growth in the number of permanent placements slipped from 28.4% to 17.2% while temporary placements fell from an increase of 20% to 11.4%.

Prior to the announcement analysts at Collins Stewart were forecasting pre-tax profits of £89.1m (EPS: 17.7p) for the year to December 2011.

Recruitment outfits are cyclical plays that largely see their price fluctuate on the basis of the wider strength in the job market. In a challenging economic climate in which the company (which specialises in finding work for professionals such as accountants) faces increasing pressure to win and place clients some further pressure on the share price looks a distinct possibility.

Last rated by Growth Company Investor in 2008 as a hold we would suggest reducing any holdings for now.