Michael Page, the UK recruitment company, today attempted to reassure investors it is capable of weathering the global economic slowdown as an independent company after last week ending takeover talks with Switzerland's Adecco.

Shares in the company rose 10.4 per cent to 351p after it announced pre-tax profit up 22 per cent to £84.1 million in the six months to June, on a 26 per cent rise in revenue to £500 million.

Michael Page also said it will increase its interim dividend by 20 per cent to 2.88p.

The company is now waiting for the UK's Takeover Panel to put in place a "put up or shut up" deadline, to push Adecco into either making a firm offer for the business or walk away.

Adecco first approached Michael Page in May and has since made two indicative proposals to the board, initially valuing the business at 400p a share.

However, Michael Page rejected both proposals on the grounds that they undervalued the company.

Steve Ingham, chief executive at Michael Page, refused to comment on Adecco, apart from stating that the company was waiting for the Takeover Panel to issue a deadline.

Commenting on the company's performance over the first half, Mr Ingham said: "Our organic growth strategy of diversifying by both specialist discipline and geography has enabled us to achieve these record results and be more robust and resilient, with an increasingly difficult economic environment in some markets being balanced by others that remain strong."

However, the group admitted that in the UK, which accounts for 33 per cent of its gross profit, operating income fell by 0.7 per cent during the interim period, mainly due to a slowdown in recruitment in banking and financial services.

Mr Ingham said that while recruitment in banking had slowed, there was still demand for compliance specialists as well as temporary staff.

However, difficult conditions in banking and financial services means that Michael Page will not replace some of its own staff once they leave, keeping employment levels at the current 5,500 by the end of the year.

There is still demand for engineers and manufacturers, as well as staff in procurement and supply. During the first six months of the year, Michael Page opened offices in Newcastle, Canterbury and Cardiff and Mr Ingham said: "The further you get from London, the better it gets."

The company also said: “With 50 per cent of the group's gross profit being generated from non-finance and accounting professional disciplines and 21 per cent of group gross profit being generated from temporary placements, it is clear that the composition of the group is significantly more diverse and robust than when market conditions were difficult in the early 1990s and 2000s.”

However, the company admitted that in the UK "there is increasing cautionary behaviour being shown, both by candidates and clients."

The company's offices in Asia Pacific reported a 33.5 per cent rise in gross profit, driven by strong growth in Australia.

In America, gross profit rose by 50.1 per cent, driven primarily by Michael Page's Latin American operations, where the group predominantly places permanent staff across a range of sectors. In North America, the company said it continued to grow, "albeit at a slower rate".

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