A record Quarter and Year for the Group

Transcription

1 14 January and FY18 Trading Update Steve Ingham Kelvin Stagg Chief Executive Officer Chief Financial Officer A record Quarter and Year for the Group LSE: PAGE.L Website:

2 Headline Numbers Kelvin Stagg, Chief Financial Officer

3 A record Quarter and Year for the Group Key financial highlights 211.1m 182.4m 2017 Growth in Constant Currency +15.4% +15.9% FY 2018 FY 815.0m 711.6m FY 2017 Reported Rates +15.8% +14.5% FY 2018 Michael Page Page Personnel +14.2% +19.0% % +21.4% 2018 Fee earner to operational support staff ratio Net Cash 79:21 6,116:1,656 FTE c. 96m c. 96m

4 Financial Review

5 Growth across brands in Perm and Temp Business balance reflects brands and geographic mix 24% 16% 42% 58% 76% 84% Perm Temp Perm Temp Perm Temp growth in permanent +17.6% to 159.9m Temporary +9.0% to 51.2m Perm:Temp ratio 76:24, slightly up on the prior year growth in permanent +15.3% to 120.9m Temporary +8.7% to 23.2m growth in permanent +25.0% to 39.0m Temporary +9.2% to 28.0m 5

6 Discipline diversification progress Professional Services disciplines delivered strongest growth 16% 2018 m 2017 m Reported % Constant % 35% Finance Accounting and Financial Services Professional Services % +11.7% 24% by Discipline Legal, Technology, HR, Secretarial, Healthcare % +24.5% Technical Engineering, Property & Construction, Procurement & Supply Chain % +17.5% Marketing, Sales and Retail % +8.4% Finance 25% Group Total % +15.4% 25% 25% Professional Services Technical Marketing, Sales and Retail 6

7 Headcount Headline Numbers Financial Review Regional Review Summary A new record headcount Ratio of fee earners to support staff at a new record of 79:21 Increase in fee earners of 58 (+1.0%) Fee earner headcount added in our Large, High Potential markets, as well as where we saw strongest growth, such as India Fee earner headcount additions in all regions Marginal reduction in support staff of 4 8,000 7,000 6,000 5,000 4,000 Total headcount +0.7% 6, ,116 3,000 2,000 1, , , Support Staff Fee Earners 7

8 ( m) as reported Fee Earners Headline Numbers Financial Review Regional Review Summary Record Quarter and Year Investment reflects confidence in growth markets Fee Earners Constant currency 8

9 Regional Review Steve Ingham, Chief Executive Officer

10 growth rate of 15.4% Large, High Potential markets* +25% 20 countries achieved YoY growth of over 20% Growth in all four regions Americas fastest growing region, record quarter in Latin America 15% 2018 m 2017 m Reported % Constant % EMEA % +13.9% 16% by Geography 49% Asia Pacific % +22.0% UK % +2.1% 20% Americas % +29.2% Group Total % +15.4% 25% EMEA 25% Asia Pacific UK Americas *Germany, Greater China, Latin America, South East Asia and the US 10

11 EMEA delivered a record quarter Strong growth across all brands Michael Page (55% of EMEA) +13%, Page Personnel (45%) +15% France, now the largest country in the Group, +10%, despite tough comparator in 2017 of +28% Other 15% Impact of disruption from gilet jaunes protests France 34% Germany +28%; Michael Page Interim +44% Benelux +13%; Netherlands +15% Southern Europe +16%; Italy +23%; Spain +10% Benelux 15% by Geography Middle East & Africa +19% m Period Reported % Constant % Germany 16% S. Europe 20% % +13.9% FY % +17.9% Headcount 3,299 2, % 49% of Group 11

12 Asia Pacific continues strong growth Greater China growth impacted by market uncertainty Greater China, our fourth largest market and 8% of the Group, +12% Mainland China experienced slowing activity due to uncertainty around trade tariffs Japan 14% South East Asia +30%; strong growth in Singapore +37% Japan +28%, both Gaishikei and Nikkei markets strong India +79% SE Asia & India 21% by Geography Greater China 40% Australia +25%, strong growth in all offices m Period Reported % Constant % % +22.0% FY % +20.7% Australasia 25% Headcount 1,709 1, % 20% of Group 12

13 UK second consecutive quarter of growth Strongest growth in Page Personnel Brexit continued to weigh on market sentiment, particularly with more senior candidates Page Personnel +12% Midlands 18% Michael Page -1% London 36% South 24% by Geography m Period Reported % % FY % North 22% Headcount 1,436 1, % 16% of Group 13

14 Americas was our fastest growing region Record quarter for Latin America US +32%, Canada +20% Boston, Houston and Los Angeles standout performances Rest of Latam 15% Latin America +28%: Brazil +25%; Mexico +30% All other countries in Latin America grew in excess of 20% Canada 6% Mexico 13% by Geography USA 53% m Period Reported % Constant % % +29.2% FY % +27.3% Brazil 13% Headcount 1,328 1, % 15% of Group 14

15 Summary

16 A record Quarter and Year for the Group All four regions delivered growth Group growth rate of +15.4% 20 countries delivered YoY growth of over 20% Continued investment in Large, High Potential markets Record fee earner and total headcount Strong net cash position of c. 96m Expect 2018 Operating Profit to be in line with Consensus 2019 Outlook 16

17 Appendix

18 Our business model 18

19 A growing international business Delivering on our global diversification strategy 24% 16% 39% 61% 76% 84% FY 2007 FY UK International 19

20 Significant variations in recruitment mix Geography Brands 30% 12% 33% 12% 16% 42% 70% 88% 67% 88% 84% 58% EMEA Asia Pacific UK Americas Michael Page Page Personnel Temp Perm 20

21 INTERNATIONAL GROWTH Fee Earner Headcount Headline Numbers Financial Review Regional Review Summary Notable fee earner and international growth 7,000 6,000 EMEA ASIA PACIFIC UK AMERICAS 5,497 6,116 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 21

22 Headcount Headline Numbers Financial Review Regional Review 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 H1 H Fee Earner Support Staff 22

23 Year-on-Year Rates EMEA +10.3% +13.6% +10.4% +12.4% +14.8% +13.2% +12.6% +19.3% +18.2% +18.6% +20.9% +13.9% Asia Pacific -2.0% -3.3% -4.7% +1.7% +3.9% +6.8% +13.9% +14.9% +13.8% +18.4% +27.7% +22.0% Asia -1.5% -6.9% -7.9% -0.5% +3.6% +10.2% +21.9% +20.8% +17.8% +21.2% +32.2% +21.2% Australasia -3.0% +6.6% +3.9% +8.1% +4.7% -1.5% -4.4% +0.7% +4.3% +10.6% +15.7% +25.0% UK +0.0% -2.3% -4.7% -6.7% -0.1% -4.5% -7.6% -2.8% -7.1% -1.9% +0.8% +2.1% Americas -0.6% -1.1% -2.0% +0.9% +15.2% +13.8% +18.4% +18.8% +20.4% +29.2% +30.1% +29.2% North America +9.2% -1.9% -10.8% -8.4% +12.5% +14.6% +26.5% +18.7% +16.4% +27.0% +27.2% +30.3% Latin America -9.8% -0.1% +9.6% +14.3% +19.2% +12.8% +9.1% +19.0% +25.7% +32.2% +33.9% +27.7% Group Total +3.6% +3.7% +1.3% +3.8% +9.1% +7.7% +8.8% +13.8% +12.3% +16.0% +19.7% +15.4% 23

24 Contacts and Calendar Contacts Date Event Jeremy Tatham Group Financial Controller Tel: +44 (0) March 2019 FY 2018 Results 10 April Trading Update investorrelations@michaelpage.com Web: 24

25 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. 25