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Fisher Capital Management Investment: Stark warning as turmoil adds to recruitment fears
Fisher Capital Management Investment: Stark warning as turmoil adds to recruitment fears
RECRUITMENT giant Michael Page international has cast another shadow over the banking sector with a warning that the recent financial turmoil is adding to a recruitment slowdown.
Birmingham,
Alabama,
India
(prbd.net)
15/09/2011
http://www.heraldscotland.com/business/corporate-sme/stark-warning-as-turmoil-adds-to-recruitment-fears-1.1117771
RECRUITMENT giant Michael Page international has cast another shadow over the banking sector with a warning that the recent financial turmoil is adding to a recruitment slowdown.
Shares in the group have already dropped by nearly 25% in the past month as investors reacted to a report from fellow recruiter Hays of a weak UK market being held back by the financial services sector.
The shares opened 12% down yesterday as Michael Page said: “In the first six months our banking business grew strongly.
However, following the recently announced hiring freezes in the past few weeks, gross profit growth in this sector, which accounts for approximately 10% of group gross profit, has slowed.”
Major European banks including Lloyds, Barclays, HSBC and UBS have announced job cuts and hiring freezes over the past two months, as the industry grapples with tougher regulation and the impact of the eurozone debt crisis on investment banking operations.
On top of that, recent sharp falls in world stock markets on global growth fears, have prompted banks to hold off any hiring decisions.
Steve Ingham, chief executive, said: “Since this turmoil has arisen in the last few weeks these announcements have meant a lot of our banking clients have just held their breath and slowed down on recruitment, and therefore our growth has slowed a little.”
Michael Page was reporting a 38% rise in first-half pre-tax profit of £45.5m, which however fell short of analysts’ consensus forecast of £51m.
Robert Morton at Investec said he would be reducing full-year forecasts, adding that “the recent turmoil in world financial markets will have some impact on global growth rates”.
Lloyds Banking Group declined to comment on its current recruitment, while RBS would say only that it was recruiting “where we have vacancies in specific areas where we need to recruit staff”.
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At Fisher, we are committed to a long-term investment philosophy that emphasizes quality and diversification. We do business this way because years of experience have convinced us that it's one of the best ways to help you achieve your goals. Our research department uses this philosophy as a guideline when recommending individual stocks.
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