Michael Page profits up

By Rhys Jones

LONDON (Reuters) - Recruitment company Michael Page Intl (MPI.L) reported better than expected second quarter profits but said uncertainty in the UK economy would continue to hit growth as the slowdown in financial sector recruiting continues.

The international recruitment firm, which has around 150 offices in 25 countries, said on Monday half-year gross profit increased 29.2 percent to 292.7 million pounds with second quarter profit rising 26 percent to 152.4 million pounds.

Michael Page's UK division, which represents around a third of the group, delivered a 3.9 percent increase in profit to 95.6 million pounds in the first half.

However, UK profit grew just 1.2 percent to 48.5 million pounds in the second quarter and Steve Ingham, the group's Chief Executive admitted growth was slowing.

"This time growth in constant currency was 15 percent and in the last quarter it was 24 percent but its still a record quarter by about 10 million pounds," Ingham told Reuters.

Analysts at Seymour Pierce had expected Michael Page to deliver second quarter profit of 142.8 million pounds, while Deutsche Bank forecast 150.4 million.

The firm, which specialises in high-margin professional and permanent staffing, benefited from Easter falling in March this year but said the positive effect was offset by the continuing weakness in UK banking and related sectors.

The fallout from the credit crisis has mainly hit banking recruitment, particularly in London, where Page's growth slowed by 8 percent during the quarter and 5 percent in the last six months.