Michael Page announces share buy-back

British recruitment consultancy Michael Page announced a £40 million (€60 million) share buy-back programme and reported a drop…

British recruitment consultancy Michael Page announced a £40 million (€60 million) share buy-back programme and reported a drop in first-half profits.

It shares were 11.3 per cent higher at 133.5 pence in early morning trade on the news.

The company reported it was well placed to produce better results when market conditions improve but warned this would not be until early next year.

"We will maintain our tight control over costs, whilst at the same time ensuring that the longer-term prospects of the business are protected," said chief executive Mr Terry Benson.

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"Today's announcement of our intention to repurchase up to £40 million of shares over the next 12 months reflects the board's view that the earnings accretion and the more effective capital structure that this will create will enhance shareholder value," he said.

In the first six months of 2002 turnover fell to £197.8 million from £247.2 million; revenue dropped £100.9 million from £136.5 million. Pre-tax profit dropped to £18 million from £38.2 million and earnings per share halved to 3.2 pence from 6.7 pence a year ago.

AFP