Investec has placed its 365p target price for Michael Page International under review after the recruitment firm reported a tough trading environment in the second quarter.

The company reported a profit of £273.9m for the first half of the year, 0.4% below the same period in 2011. While the firm pointed out that it was facing a tough comparator in the second quarter, it said that third-quarter trading would likely be challenging.

"Trading conditions deteriorated significantly in the second quarter of the year and although gross profits are up on the seasonally weaker first quarter, they are down on the comparable period last year," said Investec analyst Robert Morton.

The broker says that it is expecting to cut its full-year forecasts by around 5%.

"Whilst profitability will clearly come under further pressure in the short term - we will be reducing our forecasts - we believe that recovery and longer term structural growth prospects remain intact and maintain our 'hold' recommendation," Morton said.

By 10:07, shares were own 4.42% at 348.5p.

BC

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