Shares in Michael Page International, one of Britain’s biggest recruitment consultants, fell more than 10 per cent after it gave warning that annual profits will fall for the first time in five years as the financial sector continues to shed jobs.

The FTSE 250 company, which earlier this year attracted a bid approach from Swiss rival Adecco, said that pre-tax profits for 2008 will be around the bottom end of the range of analysts' forecasts — £136 million, or 8 per cent lower than last year.

Consensus forecasts had been for a modest rise to £150 million. Shares in Michael Page fell 10.36 per cent to 173p today, and have fallen 43 per cent over the past three months. Adecco had pitched its initial offer in May at 400p a share.

Michael Page said the erosion of confidence triggered by turmoil in the financial sector “is now more marked and has spread rapidly in November to virtually every industry sector and geographic market in which the group operates. Consequently, the cautionary behaviour of clients and candidates has increased further, significantly reducing activity levels and shortening the group’s earnings visibility”.

The company also disclosed that it is cutting its staff numbers more quickly than before.

In October, it disclosed a reduction in headcount — to which its fees are correlated — to 5,452. Today Michael Page said its year-end headcount would be 5,100. Previously, the staff cuts have fallen most heavily in the UK and North America.

The company draws around two thirds of its profits from outside the UK.

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