Recruiter Michael Page International warned the summer hiring lull and wobbly global job markets will ensure another tough period after it posted an 11% fall in first-half profits.
The firm said the seasonally quieter summer break in the UK and Europe will compound six months of increasingly uncertain global economic conditions, which saw profits fall across Australia and its Europe, the Middle East and Africa (EMEA) region.
The Surrey-based group said underlying pre-tax profits fell £3.9 million to £32 million in the first six months on a year earlier, while revenues at constant currency dipped 0.9% to £503.2 million.
Its shares were down 4% on the cautious outlook for its third quarter. That was despite Page insisting there are glimmers of improvement and trading is in line with City forecasts for £70.9 million of annual operating profit.
Boss Steve Ingham said it was a "robust" performance in challenging markets, with an improved second quarter.
But he added: "With difficult conditions likely to continue in several markets and as this is the seasonally quieter summer period in both continental Europe and the UK, we expect the third quarter will be another challenging quarter."
The group axed 144 of its global workforce during the six months to leave it with about 4,950 staff. But it increased employees in the UK by 2% to 1,256 and said it is "well positioned to take advantage of any recovery".
Page said quarterly profits have now turned positive in the UK, up 0.3% annually in the April to June quarter, the first positive quarterly profits for a year-and-a-half.
Half-year operating profits in the UK grew 11.2% to £9.6 million on a year earlier, while Page said domestic markets remain "tough but stable". UK revenues were flat at £146.1 million.
Page reported a sharp turnaround in the Americas, where operating profits swelled to £2.5 million from just £200,000 a year earlier. Growth was driven by strong progress in the US, where recovery in the world's biggest economy lifted gross profits 23%.
But Australia's slumping economy sent gross profits there diving 20% as China's slowing growth continues to depress its mining and commodities industries. That drove a 30.4% slide in Asia Pacific operating profits to £9.6 million.
Its EMEA region reported a 22.2% plunge in operating profits to £10.4 million, as trading across Northern Europe was hurt by continuing eurozone woes.
The group was one of the heaviest fallers on the FTSE 250 Index.
Gideon Adler, analyst at Investec Securities, said while the results were in line with expectations, the statement struck a cautious tone. "Patience is required," he said.
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