Recruitment company Michael Page has warned of a slowdown in its UK business as the impact of the banking crisis starts to take hold.

The recruitment specialist said the UK, which represents 34% of gross profit, delivered first-quarter gross profit of £47.1 million, a 6.7% increase.

Reacting to the cautionary outlook in this morning's interim management statement, shares were down 19p, or 6%, to 286 pence.

The company reiterated it continues to see good activity in job and candidate flow outside banking-related areas and opened new offices in Newcastle and Cardiff.

Evolution Securities analyst Hector Forsythe said that Michael Page 'delivered another quarter of strong growth, albeit top sliced by slowing banking activity'.

'Take out banking and the business continues to grow at a remarkable pace,'said Forsythe although he added that economic conditions are getting tougher.

Forsythe, with an 'add' rating on the stock, said that that the shares had priced in too wide a deterioration in business, and don't reflect the growth and diversity of the group.

Landsbanki analysts also reiterated a 'buy' stance on the group.