CPL Resources - Michael Page Q4 update: weaker UK conditions, albeit Europe seeing continued strength

Davy Research
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Michael Page’s Q4 performance in the UK (net fees -6.7% compared to -4.7% in Q2) highlights that there are pockets of weakness in the UK with deteriorating activity levels, particularly within higher-value roles. However, its lower-value Page Personnel brand was more resilient in Q4 (down 1%), while the performance contrasts sharply with Robert Walters’ 16% growth in the UK in Q4 (driven somewhat by the growth in recruitment outsourcing). Europe continues to be robust, mirroring remarks from Robert Walters. In terms of read-through for Cpl’s UK business, we would note limited overlap with Michael Page, which is particularly exposed to higher-value roles and financial services. Cpl will release its H1 results on January 26th.