Michael Page, the recruitment company, has tried to reassure investors that it can weather the economic slowdown after walking away from takeover talks with Adecco last week.

It argued yesterday that its success in expanding both its range of services and its global operations proved that its strategy was working in what had become a tough economic climate.

Yesterday Michael Page announced a 22 per cent rise in pre-tax profit in the six months to June 30 to £84.1 million and a 26 per cent rise in revenue to £500 million. It will increase its interim dividend by 20 per cent to 2.88p.

In Britain, which accounts for 33 per cent of the company's gross profit, operating income fell by 0.7 per cent during the first half, thanks to a decline in recruitment in banking and financial services. However, according to Steve Ingham, its chief executive, 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. According to Mr Ingham: “The further you get from London, the better it gets.” Indeed, the company's offices in Asia Pacific reported a 33.5 per cent rise in gross profit, driven by strong growth in Australia, and in the Americas, gross profit rose by 50.1 per cent, driven primarily by Michael Page's Latin American operations.

Mr Ingham said of the company's first-half performance: “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.”

The company is now waiting for the Takeover Panel to impose a “put up or shut up” deadline to compel Adecco, of Switzerland, to make either a firm offer for the business or not. Adecco approached Michael Page in May and has since made two indicative proposals to the board, initially valuing the business at 400p a share, or £1.3 billion. Michael Page rejected both proposals on the ground that they undervalued the company.

Mr Ingham said that he expected the panel to impose a deadline on Adecco. Asked whether the Swiss company could make a hostile bid, he said: “If they're as good as their word, then it will be friendly.”

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