First ever quarter with over 200m Gross Profit

Transcription

1 11 July 2018 and H Trading Update Steve Ingham Kelvin Stagg Chief Executive Officer Chief Financial Officer First ever quarter with over 200m Gross Profit LSE: PAGE.L Website:

2 Headline Numbers Kelvin Stagg, Chief Financial Officer

3 First ever quarter with over 200m Gross Profit Key financial highlights Gross Profit 208.2m 181.8m 2017 Growth in Constant Currency +16.0% +12.3% 2018 Gross Profit H m 352.0m H Reported Rates +14.5% +10.3% 2018 Michael Page +15.8% +10.8% 2018 Net Cash c. 85m c. 89m 2017 Page Personnel +16.4% Dividend Paid in June +15.9% m 3

4 Financial Review

5 Growth across brands in Perm and Temp Business balance reflects brands and geographic mix 22% 15% 40% 60% 78% 85% Perm Temp Perm Temp Perm Temp Gross Profit growth in permanent +17.6% to 161.5m Temporary +10.7% to 46.7m Perm:Temp ratio 78:22 slightly up on prior year Gross Profit growth in permanent +16.8% to 123.4m Temporary +10.3% to 21.6m Gross Profit growth in permanent +20.1% to 38.1m Temporary +11.1% to 25.1m 5

6 Discipline diversification progress Specialist disciplines continue to deliver record growth 18% 2018 m 2017 m Reported % Constant % Finance Accounting and Financial Services Technical Engineering, Property & Construction, Procurement & Supply Chain Professional Services Legal, Technology, HR, Secretarial, Healthcare % +9.1% % +26.4% % +21.7% Marketing, Sales and Retail % +10.1% Group Total % +16.0% 24% Gross Profit by Discipline 24% 34% Accounting and Financial Services Legal, Technology, HR, Secretarial, Healthcare 25% 25% Engineering, Property & Construction, Procurement & Supply Chain Marketing, Sales and Retail 6

7 Headcount Headline Numbers Financial Review Regional Review Vision & Digital Summary A new record headcount Ratio of fee earners to support staff maintained at a record 78:22 Increase in fee earners of 136 (+2.4%) Fee earner headcount added in our Large, High Potential markets, as well as where we saw strongest growth Fee earner headcount additions spread throughout the Group except UK -16 (-1.6%) Marginal increase in support staff of 10 (+0.6%) Joiners ratio of fee earner to operational support staff was 93:7 8,000 7,000 6,000 5,000 4,000 3,000 2, % 5,680 5,816 1, ,631 1, Support Staff Fee Earners 7

8 Gross Profit ( m) as reported Fee Earners Headline Numbers Financial Review Regional Review Vision & Digital Summary Record fee earners, record gross profit Investment reflects confidence in growth markets Constant currency 8

9 Regional Review Steve Ingham, Chief Executive Officer

10 Highest quarterly growth rate for 7 years 20 countries achieved YoY growth of over 20% A record quarter for our Large, High Potential markets +24% Americas fastest growing region, record quarters in North and Latin America 15% 2018 m 2017 m Reported % Constant % EMEA % +18.6% 17% Gross Profit by Geography 48% Asia Pacific % +18.4% UK % -1.9% 20% Americas % +29.2% Group Total % +16.0% 25% EMEA 25% Asia Pacific UK Americas 10

11 EMEA saw strong market conditions Gross profit records in France, Germany and 5 other countries Michael Page (56% of EMEA) +21%, Page Personnel (44%) +16% France, second largest country in the Group +15% Germany +25%, Michael Page Interim +38% Benelux +24%, with strong growth in Belgium and the Netherlands Record quarter for Southern Europe +15% Middle East & Africa +30% Benelux 15% Other 15% Gross Profit by Geography France 33% m Period Gross Profit Reported % Constant % % +18.6% H % +18.5% Germany 15% S. Europe 22% Headcount 3,175 2, % 48% of Group 11

12 Asia Pacific continues strong growth 8 countries achieved YoY growth of over 10% Greater China, our third largest market and 9% of the Group, a record quarter +18% South-East Asia, strong performance +18% including Singapore +25%; opened in Vietnam Japan 14% India +27%, with over 100 fee earners; Japan +35% Australia +10%, following fee earner investment and new Canberra office SE Asia & India 18% Gross Profit by Geography Greater China 43% m Period Gross Profit Reported % Constant % % +18.4% H % +16.3% Australasia 25% Headcount 1,660 1, % 20% of Group 12

13 UK remained challenging Although positive growth in Page Personnel Brexit continued to weigh on market sentiment Page Personnel +5% Midlands 18% Michael Page -4% Midlands was strongest performing region London 34% South 24% Gross Profit by Geography m Period Gross Profit Reported % % H % North 24% Headcount 1,395 1, % 17% of Group 13

14 Americas was our fastest growing region All countries achieved growth of over 20% Record quarters for US +27% and Canada +30% Particularly strong growth in US excluding New York +38% Latin America +32%; Mexico +25%, Brazil +23% Rest of Latam 17% Other four countries in Latin America +46% Canada 6% Mexico 13% Gross Profit by Geography USA 51% m Period Gross Profit Reported % Constant % % +29.2% H % +24.9% Brazil 13% Headcount 1,227 1, % 15% of Group 14

15 Page Vision & Digital Steve Ingham, Chief Executive Officer

16 Progressing towards Page Vision Aiming for fee earner to operational support staff ratio of 82:18 Gross Profit Total Headcount Vision 1bn Vision 10,000 Last 12 months* 756m HY 18 7,457 Prior 12 months** 674m , m ,549 * Period H to H ** Period H to H

17 Connected Customer Experience ACQUIRE ENGAGE NURTURE Platform 17

18 Continuing a personalised journey On-site Job Matching technology Relevant content 18

19 Summary

20 A record Gross Profit performance Highest growth rate for 7 years First ever quarter with over 200m Gross Profit Gross Profit +16.0% in constant currency Continued investment in Large, High Potential markets Record fee earner headcount Strong net cash position of c. 85m Expect Operating Profit to be slightly ahead of Consensus 20

21 Appendix

22 A growing international business Delivering on our global diversification strategy Gross Profit 24% 17% 39% 61% 76% 83% FY 2007 FY UK International 22

23 Significant variations in recruitment mix Geography Brands 29% 29% 11% 9% 15% 40% 71% 71% 89% 91% 85% 60% EMEA UK Asia Pacific Americas Michael Page Page Personnel Temp Perm 23

24 INTERNATIONAL GROWTH Fee Earner Headcount Headline Numbers Financial Review Regional Review Vision & Digital Summary Notable fee earner and international growth 7,000 EMEA ASIA PACIFIC UK AMERICAS 6,000 5,497 5,816 5,000 4,000 3,000 2,000 1,000 1,657 1,657 1,708 2,075 1,466 1,444 1,174 2,763 3,837 3,654 2,515 4,711 4,484 4,278 3,797 3,624 3,810 3, EMEA APAC Americas UK France (1986) Netherlands (1987) Germany (1993) Spain (1997) Italy (1997) Portugal (2000) Switzerland (2001) Belgium (2002) Sweden (2002) Poland S Africa Austria Ireland Turkey UAE Luxembourg Morocco EMEA Australia (1985) Hong Kong (1995) Singapore (1996) Japan (2001) China (2003) New Zealand India Malaysia Taiwan Indonesia Thailand Vietnam ASIA PACIFIC USA (1998) Brazil (2000) Canada Mexico Argentina Chile Colombia Peru AMERICAS 24

25 Headcount Headline Numbers Financial Review Regional Review Vision & Digital Summary Fee earner investment and support staff H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H Fee Earner Support Staff 25

26 Year-on-Year Gross Profit Rates EMEA +10.3% +13.6% +10.4% +12.4% +14.8% +13.2% +12.6% +19.3% +18.2% +18.6% Asia Pacific -2.0% -3.3% -4.7% +1.7% +3.9% +6.8% +13.9% +14.9% +13.8% +18.4% Asia -1.5% -6.9% -7.9% -0.5% +3.6% +10.2% +21.9% +20.8% +17.8% +21.2% Australasia -3.0% +6.6% +3.9% +8.1% +4.7% -1.5% -4.4% +0.7% +4.3% +10.6% UK +0.0% -2.3% -4.7% -6.7% -0.1% -4.5% -7.6% -2.8% -7.1% -1.9% Americas -0.6% -1.1% -2.0% +0.9% +15.2% +13.8% +18.4% +18.8% +20.4% +29.2% North America +9.2% -1.9% -10.8% -8.4% +12.5% +14.6% +26.5% +18.7% +16.4% +27.0% Latin America -9.8% -0.1% +9.6% +14.3% +19.2% +12.8% +9.1% +19.0% +25.7% +32.2% Group Total +3.6% +3.7% +1.3% +3.8% +9.1% +7.7% +8.8% +13.8% +12.3% +16.0% 26

27 Contacts and Calendar Contacts Date Event Jeremy Tatham Group Financial Controller Tel: +44 (0) August 2018 HY 2018 Results 10 October Trading Update investorrelations@michaelpage.com Web: 27

28 Disclaimer This presentation contains certain statements that are neither reported financial results nor other historical information. The information contained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to, or use by, any person or entity in any jurisdiction in any country where such distribution or use would be contrary to law or regulation, or which would subject any member of the PageGroup plc group of companies to any registration requirement. No representation or warranty, express or implied, is or will be made in relation to the accuracy, fairness or completeness of the information or opinions made in this presentation. Certain statements included or incorporated by reference within this presentation may constitute forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. There are risk factors that can cause actual results to differ materially from those expressed in or implied by such statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. PageGroup plc disclaims any intention or obligation to revise or update any forward-looking statements that may be made in this presentation, regardless of whether those statements are affected as a result of new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast. This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in PageGroup plc, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the shares of PageGroup plc. Past performance cannot be relied upon as a guide to future performance. Liability arising from anything in this presentation shall be governed by English Law. Nothing in this presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws. 28