Michael Page half-year results 2026: Profit rebounds but dividend cut bites

Michael Page has reported a much stronger first-half operating profit despite recruitment markets remaining difficult across several important regions.

The specialist recruiter reiterated its full-year guidance, supported by tighter costs, improving productivity and growth across around half of its markets. However, the recovery is not yet broad-based. Gross profit declined, the UK remained loss-making and the interim dividend was cut sharply.

Investors can read the original half-year announcement for the complete financial statements.

Michael Page's key figures

Six months to 30 June	2026	2025	Change
Revenue	£799.5 million	£798.4 million	0.1%
Gross profit	£385.2 million	£389.7 million	-1.1%
Operating profit	£9.7 million	£2.1 million	More than 100%
Profit before tax	£6.5 million	£0.2 million	More than 100%
Basic earnings per share	1.2p	0.0p	More than 100%
Conversion rate	2.5%	0.5%	2.0 percentage points
Interim dividend per share	1.46p	5.36p	-72.8%

Revenue was broadly flat at reported exchange rates but declined 1.9% in constant currencies. Gross profit, a more useful measure of recruitment income after direct placement costs, fell 2.4% in constant currencies.

The headline improvement came further down the income statement. Administrative expenses dropped 3.1% to £375.5 million, helped by lower average headcount and ongoing efficiency measures. This lifted operating profit to £9.7 million from £2.1 million.

There is an important caveat. Michael Page incurred around £13 million of one-off costs in H1 2025, compared with approximately £2.5 million this time. The profit rebound therefore reflects both genuine cost progress and a substantially easier comparison.

Productivity is moving in the right direction

Gross profit per fee earner rose 3.7% in constant currencies to £77,400, its highest level since 2022. Fee earners are employees directly involved in generating recruitment income.

That productivity gain matters because Michael Page has been shrinking and reallocating its workforce rather than waiting passively for recruitment demand to recover. Fee-earner headcount fell by 54 during the half to 4,914, with reductions in EMEA and the UK partly offset by investment in the Americas and Asia Pacific.

Management said cost programmes launched since the new strategy have produced annualised savings of around £40 million, excluding savings caused by lower fee-earner headcount. Actions have included relocating support functions, consolidating offices and removing management layers.

The conversion rate, which measures operating profit as a percentage of gross profit, increased to 2.5% from 0.5%. This remains modest, but it shows that more of the company's recruitment income is reaching operating profit.

Further one-off costs of around £2.5 million are expected in the second half.

Growth remains uneven across the regions

The geographical picture is mixed, with Asia Pacific and the Americas delivering growth while the UK and much of Europe remained difficult.

Region	H1 gross profit	Constant-currency change	Operating profit or loss
EMEA	£200.9 million	-6.9%	£15.1 million profit
Americas	£78.6 million	4.4%	£3.3 million profit
Asia Pacific	£63.0 million	9.2%	£0.7 million loss
UK	£42.7 million	-8.2%	£8.0 million loss

Asia Pacific was the strongest region for gross profit growth. Japan rose 17%, Greater China increased 14% and India delivered a record first half, growing 9%. The region's operating loss narrowed substantially from £4.2 million to £0.7 million.

The Americas also progressed, with gross profit up 4.4% in constant currencies. The US grew 3%, while Colombia delivered a record first half with growth of 15%.

EMEA remained the largest and most profitable region, but gross profit declined 6.9%. France fell 13% amid political and economic uncertainty, while Germany was down 5%. Southern Europe provided some encouragement, returning to growth during the second quarter.

The UK remains the clearest weak spot. Revenue dropped 11.3%, gross profit fell 8.2% and the operating loss widened to £8.0 million. Management reported pockets of optimism in Page Executive, interim recruitment and technology during the second quarter, but clients continued to delay hiring and candidates remained cautious.

Higher-value recruitment offers some encouragement

The company's strategy is increasingly focused on senior permanent placements, where salaries and recruitment fees are generally higher.

Page Executive delivered record first-half performance, with growth of 8%. Enterprise Solutions' outsourcing business also achieved a record first half, growing 22%.

These areas suggest Michael Page can improve its revenue quality even without a rapid recovery across the wider recruitment market. Client satisfaction is also strengthening. Its net promoter score, which measures clients' willingness to recommend the business, increased to 67 from 66 in 2025, already above the long-term target of 60.

The group has rebranded from PageGroup to Michael Page, bringing its services under one name. Readers can follow the company's broader profile on the PageGroup plc share page.

Dividend cut and net debt deserve attention

The interim dividend was reduced from 5.36p to 1.46p per share. That is a cut of approximately 73%, reflecting the current level of profitability and the board's desire to retain funds for investment.

The dividend is due to be paid on 9 October 2026 to shareholders on the register on 28 August 2026.

Michael Page moved from net cash of £10.8 million at June 2025 to net debt of £7.2 million. Cash generated from operations improved to £6.1 million, but tax, investment, dividends and lease payments affected the overall cash position.

The balance sheet does not appear immediately stretched based on the figures disclosed. Michael Page had around £30 million of gross cash and access to an £80 million committed revolving credit facility, although £30 million of that facility was drawn at the period end. The board concluded that the group has adequate resources through its review period to August 2027.

What investors should watch next

The board continues to expect full-year operating profit of around £28 million, in line with company-compiled consensus. Achieving that would require a much stronger second half after the £9.7 million generated during H1.

The positives are improving productivity, firm cost control, growth in Asia Pacific and the Americas, and encouraging results from higher-value services. Around 50% of the group's markets were growing during the first half.

The negatives are equally clear. Group gross profit is still contracting, the UK loss has widened, France and Northern Europe remain weak, net cash has become net debt and shareholders are receiving a substantially smaller interim dividend.

Michael Page is showing that it can protect and rebuild profitability without a full recruitment recovery. The next test is whether improving markets can begin contributing alongside cost reductions, rather than leaving efficiency measures to carry most of the load.