TIDMPAGE
RNS Number : 4238I
PageGroup plc
07 August 2023
7 August 2023
Half Year Results for the Period Ended 30 June 2023
PageGroup plc ("PageGroup"), the specialist professional
recruitment company, announces its unaudited half year results for
the period ended 30 June 2023.
Financial summary Change
(6 months to 30 June 2023) 2023 2022 Change CC*
Revenue GBP1,033.9m GBP977.3m +5.8% +3.6%
------------ ---------- ------- -------
Gross profit GBP526.8m GBP538.9m -2.2% -4.4%
------------ ---------- ------- -------
Operating profit GBP63.9m GBP115.3m -44.6% -47.5%
------------ ---------- ------- -------
Profit before tax GBP63.3m GBP114.5m -44.7%
------------ ---------- -------
Basic earnings per share 13.6p 25.6p -46.9%
------------ ---------- -------
Diluted earnings per share 13.6p 25.5p -46.7%
------------ ---------- -------
Interim dividend per share 5.13p 4.91p
------------ ----------
Special dividend per share 15.87p 26.71p
------------ ----------
H1 Summary
-- Group operating profit of GBP63.9m (H1 2022: GBP115.3m)
-- Conversion rate** decreased to 12.1% (H1 2022: 21.4%)
-- Gross profit per fee earner down 5.8% on H1 2022 to GBP79.7k (H1 2022: GBP82.8k)
-- Total headcount decreased by 448 (5.0%) to 8,572 at the end of June
-- Strong Balance Sheet, with net cash of GBP97.9m (H1 2022: GBP136.2m)
-- Interim dividend up 4.5% to 5.13 pence per share, totalling GBP16.2m
-- Special dividend of 15.87 pence per share, totalling GBP50.0m
-- Outlook unchanged: Full year operating profit expected to be
in line with previous guidance
* in constant currencies
** operating profit as a percentage of gross profit
Commenting, Nicholas Kirk, Chief Executive Officer, said:
"The Group delivered a robust H1 performance against a record
first half in 2022. EMEA delivered the standout result, delivering
record H1 gross profit against a particularly strong comparator
across the region. However, tough market conditions continued in
Asia, the UK and the US. Overall, Group gross profit declined 4.4%
in constant currencies against H1 2022 . We delivered Group
operating profit of GBP63.9m at a conversion rate of 12.1%,
compared with 21.4% in H1 2022.
"The challenging conditions we saw towards the end of 2022
continued into H1 2023, with lower levels of both candidate and
client confidence resulting in delays in decision making and
candidates being more reluctant to accept offers. Reflecting the
uncertain macro-economic conditions, temporary recruitment
outperformed permanent, as clients sought more flexible options. In
line with these conditions, we reduced our fee earner headcount by
558 (-8.0%) in the first half, with reductions in all regions. Our
total headcount of 8,572 is 448 (-5.0%) lower than at the end of
2022. Productivity, measured as gross profit per fee earner,
declined 5.8%, reflecting the reduction in gross profit, although
this was partially offset by the decrease in headcount.
"We are announcing today an interim dividend of 5.13 pence per
share, an increase of 4.5% over 2022. In addition, in line with our
policy of returning surplus capital to shareholders, we are also
announcing a special dividend of 15.87 pence per share (2022: 26.71
pence per share) totalling GBP50.0m. Taking these two dividend
payments together, this amounts to a cash return to shareholders of
GBP66.2m. This is in addition to the 2022 final dividend paid in
June of GBP33.9m, resulting in a total return to shareholders in
2023 of GBP100.1m, or 31.76 pence per share.
"Looking forward, there remains a high level of global
macro-economic and political uncertainty in the majority of our
markets. However, against this backdrop, we continue to see
candidate shortages and good levels of vacancies, as well as
continued high fee rates. We are also seeing the benefits from our
investments in innovation and technology, where Customer Connect is
supporting productivity and enhancing customer experience and Page
Insights is providing real time data to inform business decisions.
We have a highly diversified and adaptable business model, a strong
balance sheet, and our cost base is under continuous review and can
be adjusted rapidly to match market conditions. Given these
fundamental strengths, we believe we will continue to perform well
despite the uncertainty. At this stage of the year, the Board
expects 2023 operating profit to be in line with our previous
guidance."
INTERIM MANAGEMENT REPORT
GROUP RESULTS
GROSS PROFIT GBPm Growth rates
% of Group H1 2023 H1 2022 Reported CC
----------- -------- -------- --------- -------
EMEA 55% 288.4 266.7 +8.1% +4.3%
----------- -------- -------- --------- -------
Americas 17% 89.1 94.2 -5.5% -8.2%
----------- -------- -------- --------- -------
Asia Pacific 16% 83.4 102.0 -18.3% -17.3%
----------- -------- -------- --------- -------
UK 12% 65.9 76.0 -13.2% -13.2%
----------- -------- -------- --------- -------
Total 100% 526.8 538.9 -2.2% -4.4%
----------- -------- -------- --------- -------
Permanent 74% 392.2 422.1 -7.1% -9.1%
----------- -------- -------- --------- -------
Temporary 26% 134.6 116.8 +15.3% +12.5%
----------- -------- -------- --------- -------
Revenue for the six months ended 30 June 2023 increased 5.8% to
GBP1,033.9m (2022: GBP977.3m) and gross profit decreased 2.2% to
GBP526.8m (2022: GBP538.9m). In constant currencies, the Group's
revenue increased 3.6% and gross profit decreased 4.4%. The Group's
revenue mix between permanent and temporary placements was 38:62
(2022: 44:56) and for gross profit was 74:26 (2022: 78:22). Revenue
from temporary placements comprises the salaries of those placed,
together with the margin charged.
Fee earner productivity decreased by 5.8% vs H1 2022 due to
reduced levels of candidate and client confidence resulting in an
increase in time to hire, as well as some reluctance to accept
offers, limiting the number of placements per fee earner.
The Group's organic growth model and profit-based team bonus
ensures costs remain tightly controlled. 77% of first half costs
were employee related, including salaries, bonuses, share-based
long-term incentives, and training and relocation costs.
In total, administrative expenses in the first half increased
9.3% in reported rates to GBP462.9m (2022: GBP423.6m), driven
largely by the higher average headcount in H1 2023 compared to H1
2022 and inflation. In constant currencies, administrative expenses
were up 7.3% and operating profit decreased by 47.5% to GBP63.9m
(2022: GBP115.3m), a decrease of 44.6% at reported rates. The
Group's conversion rate, which represents the ratio of operating
profit to gross profit, was 12.1% (2022: 21.4%) driven by the more
challenging trading conditions in 2023, combined with higher
costs.
OTHER ITEMS
Net interest expense of GBP0.5m was broadly consistent with H1
2022 (GBP0.8m). The effective tax rate for the first half was 31.9%
(H1 2022: 28.8%), with the increase on the prior year due to the
change in the UK tax rate from 19% to 25% from April 2023.
For the six months ended 30 June 2023, basic earnings per share
and diluted earnings per share were both 13.6p, representing a
decrease of 47% on 2022 (2022: basic earnings per share 25.6p;
diluted earnings per share 25.5p).
CASH FLOW
The Group started the year with net cash of GBP131.5m. In H1,
GBP83.7m was generated from operations due to H1 Operating Profit
as well a net outflow of working capital due to the stronger
performance in temporary recruitment. Tax paid was GBP27.3m and net
capital expenditure was GBP11.3m. During the first half, GBP0.8m
was received from exercises of share options (2022: GBP0.3m), GBP
17.5m was spent on the purchase of shares into the Employee Benefit
Trust (2022: GBP14.8m) and dividends of GBP33.9m were paid to
shareholders (2022: GBP32.7m). As a result, the Group had net cash
of GBP97.9m at 30 June 2023 (30 June 2022: GBP136.2m).
CAPITAL ALLOCATION POLICY
It is the Directors' intention to continue to finance the
activities and development of the Group from retained earnings and
to maintain a strong balance sheet position.
The Group's first use of cash is to satisfy operational and
investment requirements, as well as to hedge its liabilities under
the Group's share plans. The level of cash required for this
purpose will vary depending upon the revenue mix of geographies,
permanent and temporary recruitment, and point in the economic
cycle.
Our second use of cash is to make returns to shareholders by way
of an ordinary dividend. Our policy is to grow the ordinary
dividend over the course of the economic cycle in a way that we
believe we can sustain the level of ordinary dividend payment
during downturns, as well as increasing it during more prosperous
times.
Cash generated in excess of these first two priorities will be
returned to shareholders through supplementary returns, using
special dividends and/or share buybacks.
The Board has announced an interim dividend of 5.13 pence per
share, an increase of 4.5% over last year. In addition, in line
with our policy of returning surplus capital to shareholders, the
Group is pleased to announce today a special dividend of 15.87
pence per share (2022: 26.71 pence per share) totalling GBP50.0m.
Taking these two dividend payments together, this amounts to a cash
return to shareholders of GBP66.2m. This is in addition to the 2022
final dividend paid in June of GBP33.9m, meaning a total of
GBP100.1m, or 31.76 pence per share, returned to shareholders in
2023.
The special dividend will be paid, as in previous years, at the
same time as the interim dividend on 13 October 2023 to
shareholders on the register as at 1 September 2023.
During the first half, the Group made purchases of GBP 17.5m of
shares into the Employee Benefit Trust to hedge its exposure under
the Group's share plans (2022: GBP14.8m).
GEOGRAPHICAL ANALYSIS ( All growth rates given below are in
constant currency vs. H1 2022 unless otherwise stated )
EUROPE, MIDDLE EAST AND AFRICA (EMEA)
EMEA GBPm Growth rates
(55 % of Group in H1 2023) H1 2023 H1 2022 Reported CC
-------- -------- --------- -------
Revenue 580.5 523.0 +11.0% +6.9%
-------- -------- --------- -------
Gross Profit 288.4 266.7 +8.1% +4.3%
-------- -------- --------- -------
Operating Profit 47.8 65.3 -26.8% -29.8%
-------- -------- --------- -------
Conversion Rate (%) 16.6% 24.5%
-------- -------- --------- -------
EMEA is the Group's largest region, contributing 55% of Group
first half gross profit. Against 2022, in reported rates, revenue
in the region increased 11.0% to GBP580.5m (2022: GBP523.0m) and
gross profit increased 8.1% to GBP288.4m (2022: GBP266.7m). In
constant currencies, revenue increased 6.9% on the first half of
2022 and gross profit increased by 4.3%.
The region was our strongest performing in H1 2023, delivering
record gross profit against a particularly tough comparator.
Against 2022, gross profit in Michael Page grew 3%, whilst our more
temporary focused Page Personnel business was up 6%. France, 14% of
Group gross profit and around a quarter of the region, delivered
record gross profit against a very tough comparator, up 2% on 2022.
Germany, the Group's second largest market, also delivered a record
first half, up 9%. This was driven by strong performances from both
our Page Personnel and our Technology focused Interim businesses,
which grew 21% and 22%, respectively. Southern Europe grew 3%, with
Italy down 1% and Spain up 1%. Benelux was up 4% for the first
half, with the Netherlands down 1% whilst Belgium grew 15%. The
Middle East and Africa grew 20%, a record H1, driven largely by a
record performance in the UAE.
Productivity for the first half was down 4.3% on the record
levels achieved in H1 2022, with total headcount up 220 (5.8%)
versus Q2 2022. H1 operating profit was GBP47.8m (2022: GBP65.3m)
with a conversion rate of 16.6% (2022: 24.5%). Profitability
decreased on 2022 due the reduction in productivity, combined with
the higher cost base. Headcount across the region decreased by 50
(1.2%) in the first half, to 4,035 at the end of June 2023 (4,085
at 31 December 2022).
THE AMERICAS
Americas GBPm Growth rates
(17% of Group in H1 2023) H1 2023 H1 2022 Reported CC
-------- -------- --------- -------
Revenue 151.0 137.3 +10.0% +8.3%
-------- -------- --------- -------
Gross Profit 89.1 94.2 -5.5% -8.2%
-------- -------- --------- -------
Operating Profit 5.9 13.8 -57.1% -70.9%
-------- -------- --------- -------
Conversion Rate (%) 6.7% 14.7%
-------- -------- --------- -------
In the Americas, representing 17% of Group first half gross
profit, revenue increased 10.0% in reported rates against 2022, to
GBP151.0m (2022: GBP137.3m), while gross profit declined 5.5% to
GBP89.1m (2022: GBP94.2m). In constant currencies against 2022,
revenue increased by 8.3% and gross profit declined 8.2%.
North America declined against 2022, a record comparator, with
the US down 16%. Conditions remained tough throughout the first
half, as uncertainty around market conditions impacted candidate
and client confidence, and we experienced a higher level of
candidate buybacks.
Latin America delivered growth of 4%. Mexico, our largest
country in the region, declined 6% and Brazil declined 11%.
Elsewhere in Latin America, our other five countries in the region
grew 24%, collectively, with Argentina, Colombia and Panama all
delivering record first halves.
For the region overall, productivity in H1 decreased 3.6%
compared with H1 2022, with North America down 9% and Latin America
up 7%. Operating profit was GBP5.9m (2022: GBP13.8m), with a
conversion rate of 6.7% (2022: 14.7%). Our conversion rate was down
on H1 2022, due to the lower productivity and higher cost base.
Headcount across the region decreased by 190 (11.3%) in H1, to
1,500 at the end of June 2023 (1,690 at 31 December 2022).
ASIA PACIFIC
Asia Pacific GBPm Growth rates
(16% of Group in H1 2023) H1 2023 H1 2022 Reported CC
-------- -------- --------- -------
Revenue 149.8 159.3 -6.0% -4.7%
-------- -------- --------- -------
Gross Profit 83.4 102.0 -18.3% -17.3%
-------- -------- --------- -------
Operating Profit 4.5 20.9 -78.7% -75.9%
-------- -------- --------- -------
Conversion Rate (%) 5.3% 20.5%
-------- -------- --------- -------
In Asia Pacific, representing 16% of Group first half gross
profit, revenue decreased 6.0% in reported rates to GBP149.8m
(2022: GBP159.3m) and gross profit decreased 18.3% to GBP83.4m
(2022: GBP102.0m), against 2022. In constant currencies, revenue
decreased 4.7% in H1 and gross profit decreased 17.3%.
Gross profit in Greater China declined 37%. In Mainland China,
gross profit was down 42% on 2022, due to the slower than
anticipated recovery following the lifting of COVID restrictions
during H1. Hong Kong declined 28%. South East Asia declined 18%,
with Singapore down 22%, whilst the other five countries in the
region declined 17%, collectively. India grew 3% and delivered a
record H1, against a very strong comparator. Overall, for the first
half, Japan declined 3% and Australia declined 2%.
First half productivity was down 13.6% on 2022, due to the
continued challenging trading conditions across the region. We
delivered GBP4.5m of operating profit (2022: GBP20.9m) at a
conversion rate of 5.3% (2022: 20.5%), significantly behind the
comparative period due to the much tougher trading conditions.
Headcount across the region decreased by 111 in the first half
(6.0%) to 1,731 at the end of June 2023 (1,842 at 31 December
2022).
UNITED KINGDOM
UK GBPm Growth rate
(12% of Group in H1 2023) H1 2023 H1 2022
-------- -------- ------------
Revenue 152.5 157.7 -3.2%
-------- -------- ------------
Gross Profit 65.9 76.0 -13.2%
-------- -------- ------------
Operating Profit 5.7 15.3 -62.9%
-------- -------- ------------
Conversion Rate (%) 8.6% 20.1%
-------- -------- ------------
In the UK, representing 12% of Group first half gross profit,
revenue decreased 3.2% vs. 2022 to GBP152.5m (2022: GBP157.7m) and
gross profit declined 13.2% to GBP65.9m (2022: GBP76.0m).
Gross profit in our Michael Page business was down 17% in the
first half. Page Personnel, which operates at lower salary levels
with a higher degree of temporary recruitment, was down 5%.
First half productivity was down 8.5% on the prior year, with H1
2022 being at record levels. Operating profit was GBP5.7m (2022:
GBP15.3m) and our conversion rate was 8.6% (2022: 20.1%). This
weaker conversion rate was due primarily to the more challenging
trading conditions, combined with a higher cost base than in the
prior year. Headcount was down 97 (6.9%) during the first half to
1,307 at the end of June 2023 (1,404 at 31 December 2022).
KEY PERFORMANCE INDICATORS ("KPIs")
We measure our progress against our strategic objectives using
the following key performance indicators:
KPI Definition, method of calculation and analysis
Gross profit How measured: Gross profit represents revenue less
growth cost of sales and consists of the total placement
fees of permanent candidates, the margin earned on
the placement of temporary candidates and the margin
on advertising income, i.e. it represents net fee
income. The measure used is the increase or decrease
in gross profit as a percentage of the prior year
gross profit.
Why it's important: The growth of gross profit relative
to the previous year is an indicator of the growth
in net fees of the business as a whole. It demonstrates
whether we are in line with our strategy to grow the
business.
How we performed in H1 2023: Trading conditions continued
to be challenging through the first half of 2023 which
resulted in a decline in gross profit of -2.2% vs.
H1 2022 in reported rates and -4.4% in constant currencies.
Relevant strategic objective: Organic growth
--------------------------------------------------------------
Gross profit How measured: Total gross profit from a) geographic
diversification regions outside the UK; and b) disciplines outside
of Accounting and Financial Services, each expressed
as a percentage of total gross profit.
Why it's important: These percentages give an indication
of how the business has diversified its revenue streams
away from its historic concentrations in the UK and
from the Accounting and Financial Services discipline.
How we performed in H1 2023: Geographies: the percentage
outside the UK increased to 87.5% (H1 2022: 85.9%),
due to the strong H1 gross profit growth in EMEA,
whilst all other regions were in decline.
Disciplines: the percentage outside of Accounting
and Financial Services was broadly in line with H1
2022 at 68.2% (H1 2022: 68.8%).
Relevant strategic objective: Diversification
--------------------------------------------------------------
Ratio of gross How measured: Gross profit from each type of placement
profits generated expressed as a percentage of total gross profit.
from permanent
and temporary Why it's important: This ratio helps us to understand
placements where we are in the economic cycle, since the temporary
market tends to be more resilient when the economy
is weak. However, in several of our core strategic
markets, working in a temporary role or as a contractor
or interim employee is not currently normal practice,
for example in Mainland China.
How we performed in H1 2023: 74% of our gross profit
was generated from permanent placements, below the
78% in 2022. Permanent recruitment declined 9.1% in
constant currencies against 2022, whilst temporary
recruitment, grew 12.5%. This reflects the current
economic climate, with clients looking for more flexibility
in their hiring decisions.
Relevant strategic objective: Organic growth
--------------------------------------------------------------
Gross profit How measured: Gross profit for the year divided by
per fee earner the average number of fee earners in the year.
Why it's important: This is a key indicator of productivity.
How we performed in H1 2023: Gross profit per fee
earner of GBP79.7k was down 5.8% vs. 2022 in constant
currencies. Although we continued to see the benefits
of video interviewing reducing time to hire, combined
with the data and technology investments made by the
Group in recent years, trading conditions were significantly
more challenging than in H1 2022.
Relevant strategic objective: Organic growth
--------------------------------------------------------------
Conversion rate How measured: Operating profit (EBIT) as a percentage
of gross profit.
Why it's important: This demonstrates the Group's
effectiveness at controlling the costs and expenses
associated with its normal business operations. It
will be impacted by the level of productivity and
the level of investment for future growth.
How we performed in H1 2023: Operating profit as
a percentage of gross profit decreased to 12.1% compared
to the prior year (H1 2022: 21.4%), driven by the
reduced productivity and higher cost base.
Relevant strategic objective: Sustainable growth
--------------------------------------------------------------
Basic earnings How measured: Profit for the year attributable to
per share the Group's equity shareholders, divided by the weighted
average number of shares in issue during the year.
Why it's important: This measures the overall profitability
of the Group.
How we performed in H1 2023: Earnings per share (EPS)
in H1 2023 was 13.6p, a decrease of 46.9% on the 2022
EPS of 25.6p. The decline is due to the lower profit
for the period, driven by the more adverse trading
conditions.
Relevant strategic objective: Build for the long-term,
organic growth
--------------------------------------------------------------
Fee-earner headcount How measured: Number of fee-earners and directors
growth involved in revenue-generating activities at the period
end, expressed as the percentage change compared to
the prior year.
Why it's important: Growth in fee-earners is a guide
to our confidence in the business and macro-economic
outlook, as it reflects expectations as to the level
of future demand above the existing capacity within
the business.
How we performed in H1 2023: Net fee earner headcount
decreased by 558 (8.0%) in H1 2023, resulting in 6,385
fee earners at the end of June. We have reduced our
fee earner headcount in all regions, in response to
the more challenging trading conditions.
Relevant strategic objective: Sustainable growth
--------------------------------------------------------------
Net cash How measured: Cash and short-term deposits less bank
overdrafts and loans.
Why it's important: The level of net cash is a key
measure of our success in managing our working capital
and determines our ability to reinvest in the business
and to return cash to shareholders.
How we performed in H1 2023: Net cash at 30 June
2023 was GBP97.9m (H1 2022: GBP136.2m). The 2023 balance
is after the payment of the 2022 final dividend of
GBP33.9m and the purchase of shares into the Employee
Benefit Trust of GBP17.5m (H1 2022: GBP14.8m).
Relevant strategic objective: Build for the long-term
--------------------------------------------------------------
The source of data and calculation methods year-on-year are on a
consistent basis. The movements in KPIs are in line with
expectations. Disclosure for GHG emissions and People KPIs is
provided annually.
PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the Group's
strategy are subject to a number of risks.
The main risks that PageGroup believes could potentially impact
the Group's operating and financial performance for the remainder
of the financial year remain those as set out in the Annual Report
and Accounts for the year ending 31 December 2022 on pages 56 to
64.
TREASURY MANAGEMENT, BANK FACILITIES AND CURRENCY RISK
The Group operates multi-currency cash concentration and
notional cash pools, and an interest enhancement facility. The
Eurozone subsidiaries and the UK-based Group Treasury subsidiary
participate in the cash concentration arrangement. The Group
Treasury subsidiary and UK business utilise the notional cash pool
and the Asia Pacific subsidiaries operate the interest enhancement
facility. The structures facilitate interest compensation for cash
whilst supporting working capital requirements.
The Group maintains a Confidential Invoice Facility with HSBC
whereby the Group has the option to discount receivables in order
to advance cash. The Group also has a Revolving Credit Facility
with BBVA, expiring in December 2027, with a total drawable amount
of GBP80m. Neither of these facilities were in use as at 30 June
2023. These facilities are used on an ad hoc basis to fund any
major Group sterling cash outflows.
The main functional currencies of the Group are Sterling, Euro,
Chinese Renminbi, US Dollar, Singapore Dollar, Hong Kong Dollar and
Australian Dollar. The Group does not have material transactional
currency exposures. The Group is exposed to foreign currency
translation differences in accounting for its overseas operations.
The Group's policy is not to hedge translation exposures.
In certain cases, where the Group gives or receives short-term
loans to and from other Group companies that differ from the
Group's reporting currency, it may use short-dated foreign exchange
swap derivative financial instruments to manage the currency and
interest rate exposure that arises on these loans.
ESG
Our ESG strategy drives purposeful impact today and will
continue to evolve alongside our business. In April 2023, we
published our third sustainability report, highlighting the
progress we've made on our four Sustainability goals over the
course of 2022. This includes:
-- Changing 135,000 lives in 2022
-- Increasing our proportion of women in leadership roles to 43%
-- Decreasing our scope 1 & 2 emissions by 30% vs 2021
-- Increasing net fees from our sustainability business by 120% vs 2021
H1 2023 has delivered continued and strong progress against all
key targets. We have also committed to set a Science-based Target
and are working on our submission to the Science-based Target
Initiative.
We are now well on our way to reaching our sustainability goals,
as we strive to support the transition to a more equitable and
greener society. For further information on our sustainability
efforts, please refer to https://www.page.com/sustainability .
GOING CONCERN
The Board has undertaken a review of the Group's forecasts and
associated risks and sensitivities, in the period from the date of
approval of the interim financial statements to August 2024 (review
period).
The Group had GBP97.9m of cash as at 30 June 2023, with no debt
except for IFRS 16 lease liabilities of GBP103.6m. Debt facilities
relevant to the review period comprise a committed GBP80m RCF
maturing December 2027, an uncommitted UK trade debtor discounting
facility (up to GBP50m depending on debtor levels) and an
uncommitted GBP20m UK bank overdraft facility. None of these
facilities were in use as at 30 June 2023.
Despite the macroeconomic and political uncertainty that
currently exists, and its inherent risk and impact on the business,
based on the analysis performed there are no plausible downside
scenarios that the Board believes would cause a liquidity issue.
Having considered the Group's forecasts, the level of cash
resources available to the business and the Group's borrowing
facilities, the Group's geographical and discipline
diversification, limited concentration risk, as well as the ability
to manage the cost base, the Board has concluded that the Group and
therefore the Company has adequate resource to continue in
operation existence for the period through to August 2024.
CAUTIONARY STATEMENT
This Interim Management Report ("IMR") has been prepared solely
to provide additional information to shareholders to assess the
Group's strategies and the potential for those strategies to
succeed. The IMR should not be relied on by any other party or for
any other purpose. This IMR contains certain forward-looking
statements. These statements are made by the directors in good
faith based on the information available to them up to the time of
their approval of this report and such statements should be treated
with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such
forward-looking information.
This IMR has been prepared for the Group as a whole and
therefore gives greater emphasis to those matters that are
significant to PageGroup plc and its subsidiary undertakings when
viewed as a whole.
Page House
Bourne Business Park
200 Dashwood Lang Road
Addlestone
Weybridge
Surrey
KT15 2NX
By order of the Board,
Nicholas Kirk Kelvin Stagg
Chief Executive Officer Chief Financial Officer
4 August 2023 4 August 2023
PageGroup will host a conference call, with on-line slide
presentation, for analysts and investors at 8.30am on 7 August
2023, the details of which are below.
Link:
https://www.investis-live.com/pagegroup/64b938709b8a600d00c5206e/paau
Please use the following dial-in number to join the
conference:
United Kingdom (Local) 020 4587 0498
All other locations +44 20 4587 0498
Please quote participant access code 51 80 95 to gain access to
the call.
A presentation and recording to accompany the call will be
posted on the PageGroup website during the course of the morning of
7 August 2023 at:
https://www.page.com/presentations/year/2023
Enquiries:
PageGroup +44 (0)20 3077 8425
Nicholas Kirk, Chief Executive Officer
Kelvin Stagg, Chief Financial Officer
FTI Consulting +44 (0)20 3727 1340
Richard Mountain / Susanne Yule
INDEPENT REVIEW REPORT TO PAGEGROUP PLC
Conclusion
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2023 which comprises the Condensed
Consolidated Income Statement, the Condensed Consolidated Statement
of Comprehensive Income, the Condensed Consolidated Balance Sheet,
the Condensed Consolidated Statement of Changes in Equity, the
Condensed Consolidated Statement of Cash Flows and the related
notes 1 to 13. We have read the other information contained in the
half yearly financial report and considered whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2023 is not prepared, in all material respects, in accordance
with UK adopted International Accounting Standard 34 and the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International
Standard on Review Engagements 2410 (UK) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" (ISRE) issued by the Financial Reporting Council. A review
of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with UK adopted international
accounting standards. The condensed set of financial statements
included in this half-yearly financial report has been prepared in
accordance with UK adopted International Accounting Standard 34,
"Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis of Conclusion
section of this report, nothing has come to our attention to
suggest that management have inappropriately adopted the going
concern basis of accounting or that management have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with this ISRE, however future events or conditions may
cause the entity to cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In preparing the half-yearly financial report, the directors are
responsible for assessing the company's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In reviewing the half-yearly report, we are responsible for
expressing to the Company a conclusion on the condensed set of
financial statements in the half-yearly financial report. Our
conclusion, including our Conclusions Relating to Going Concern,
are based on procedures that are less extensive than audit
procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK) "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Financial
Reporting Council. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
London
4th August 2023
Condensed Consolidated Income Statement
For the six months ended 30 June 2023
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Revenue 3 1,033,886 977,257 1,990,287
Cost of sales (507,095) (438,354) (913,993)
Gross profit 3 526,791 538,903 1,076,294
Administrative expenses (462,934) (423,586) (880,215)
---------- ---------- ------------
Operating profit 3 63,857 115,317 196,079
Financial income 4 829 392 1,104
Financial expenses 4 (1,378) (1,212) (2,817)
Profit before tax 3 63,308 114,497 194,366
Income tax expense 5 (20,176) (33,000) (55,354)
---------- ---------- ------------
Profit for the period 43,132 81,497 139,012
---------- ---------- ------------
Attributable to:
Owners of the parent 43,132 81,497 139,012
---------- ---------- ------------
Earnings per share
Basic earnings per share (pence) 8 13.6 25.6 43.7
Diluted earnings per share (pence) 8 13.6 25.5 43.5
---------- ---------- ------------
The above results all relate to continuing operations
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit for the period 43,132 81,497 139,012
Other comprehensive (loss)/income for
the period
Items that may subsequently be reclassified
to profit and loss:
Currency translation differences (13,997) 10,968 15,441
Total comprehensive income for the period 29,135 92,465 154,453
---------- ---------- ------------
Attributable to:
Owners of the parent 29,135 92,465 154,453
---------- ---------- ------------
Condensed Consolidated Balance Sheet
As at 30 June 2023
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 9 37,665 33,251 36,123
Right-of-use assets 93,395 93,188 100,996
Intangible assets - Goodwill and
other intangible 1,859 2,036 1,955
- Computer software 33,880 42,740 38,045
Deferred tax assets 20,421 19,941 18,641
Other receivables 10 12,890 12,989 13,224
200,110 204,145 208,984
---------- ---------- ------------
Current assets
Trade and other receivables 10 411,725 441,274 437,247
Current tax receivable 21,095 22,048 17,233
Cash and cash equivalents 13 97,939 136,227 131,480
530,759 599,549 585,960
---------- ---------- ------------
Total assets 3 730,869 803,694 794,944
---------- ---------- ------------
Current liabilities
Trade and other payables 11 (258,308) (256,958) (289,108)
Provisions 12 (3,737) (2,236) (2,772)
Lease liabilities (32,984) (29,746) (31,268)
Current tax payable (15,457) (32,785) (18,050)
(310,486) (321,725) (341,198)
---------- ---------- ------------
Net current assets 220,273 277,824 244,762
---------- ---------- ------------
Non-current liabilities
Other payables 11 (8,455) (13,883) (14,951)
Lease liabilities (70,643) (71,878) (78,564)
Deferred tax liabilities (2,619) (1,475) (1,345)
Provisions 12 (4,812) (7,443) (6,683)
(86,529) (94,679) (101,543)
---------- ---------- ------------
Total liabilities 3 (397,015) (416,404) (442,741)
---------- ---------- ------------
Net assets 333,854 387,290 352,203
---------- ---------- ------------
Capital and reserves
Called-up share capital 3,286 3,286 3,286
Share premium 99,564 99,564 99,564
Capital redemption reserve 932 932 932
Reserve for shares held in the employee
benefit trust (73,123) (56,875) (56,626)
Currency translation reserve 18,341 27,865 32,338
Retained earnings 284,854 312,518 272,709
Total equity 333,854 387,290 352,203
---------- ---------- ------------
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2023
Reserve
for
shares
held in
Called-up Capital the Currency
share Share redemption employee translation Retained Total
benefit
capital premium reserve trust reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January 2022 3,286 99,564 932 (47,338) 16,897 266,764 340,105
---------- -------- ----------- --------- ------------ ---------- ----------
Currency translation differences - - - - 10,968 - 10,968
---------- -------- ----------- --------- ------------ ---------- ----------
Net income recognised directly in
equity - - - - 10,968 - 10,968
Profit for the six months ended 30
June 2022 - - - - - 81,497 81,497
Total comprehensive income for the
period - - - - 10,968 81,497 92,465
---------- -------- ----------- --------- ------------ ---------- ----------
Purchase of shares held in the
employee
benefit trust - - - (14,837) - - (14,837)
Exercise of share plans - - - - - 276 276
Reserve transfer when shares held
in the employee benefit trust vest - - - 5,300 - (5,300) -
Credit in respect of share schemes - - - - - 2,922 2,922
Debit in respect of tax on share
schemes - - - - - (901) (901)
Dividends - - - - - (32,740) (32,740)
---------- -------- ----------- --------- ------------ ---------- ----------
- - - (9,537) - (35,743) (45,280)
Balance at 30 June 2022 3,286 99,564 932 (56,875) 27,865 312,518 387,290
---------- -------- ----------- --------- ------------ ---------- ----------
Currency translation differences - - - - 4,473 - 4,473
---------- -------- ----------- --------- ------------ ---------- ----------
Net income recognised directly in
equity - - - - 4,473 - 4,473
Profit for the six months ended 31
December 2022 - - - - - 57,515 57,515
Total comprehensive income for the
period - - - - 4,473 57,515 61,988
---------- -------- ----------- --------- ------------ ---------- ----------
Purchase of shares held in the
employee
benefit trust - - - (1) - - (1)
Exercise of share plans - - - - - 171 171
Reserve transfer when shares held
in the employee benefit trust vest - - - 250 - (250) -
Credit in respect of share schemes - - - - - 3,067 3,067
Credit in respect of tax on share
schemes - - - - - 195 195
Dividends - - - - - (100,507) (100,507)
- - - 249 - (97,324) (97,075)
---------- -------- ----------- --------- ------------ ---------- ----------
Balance at 31 December 2022 3,286 99,564 932 (56,626) 32,338 272,709 352,203
---------- -------- ----------- --------- ------------ ---------- ----------
Balance at 1 January 2023 3,286 99,564 932 (56,626) 32,338 272,709 352,203
---------- -------- ----------- --------- ------------ ---------- ----------
Currency translation differences - - - - (13,997) - (13,997)
---------- -------- ----------- --------- ------------ ---------- ----------
Net expense recognised directly in
equity - - - - (13,997) - (13,997)
Profit for the six months ended 30
June 2023 - - - - - 43,132 43,132
---------- -------- ----------- --------- ------------ ---------- ----------
Total comprehensive (expense)/income
for the period - - - - (13,997) 43,132 29,135
---------- -------- ----------- --------- ------------ ---------- ----------
Purchase of shares held in employee
benefit trust - - - (17,529) - - (17,529)
Exercise of share plans - - - - - 759 759
Reserve transfer when shares held
in the employee benefit trust vest - - - 1,032 - (1,032) -
Credit in respect of share schemes - - - - - 2,462 2,462
Credit in respect of tax on share
schemes - - - - - 713 713
Dividends - - - - - (33,889) (33,889)
- - - (16,497) - (30,987) (47,484)
---------- -------- ----------- --------- ------------ ---------- ----------
Balance at 30 June 2023 3,286 99,564 932 (73,123) 18,341 284,854 333,854
---------- -------- ----------- --------- ------------ ---------- ----------
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2023
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Note
Profit before tax 63,308 114,497 194,366
Depreciation, amortisation charges
and expense of computer software 31,913 33,519 60,592
Loss on sale of property, plant
and equipment 144 43 4,398
Share scheme charges 2,468 2,923 5,989
Net finance costs 549 820 1,713
---------- ---------- ------------
Operating cash flow before changes
in working capital 98,382 151,802 267,058
Decrease/(increase) in receivables 13,375 (71,612) (61,509)
(Decrease)/increase in payables (28,045) 12,309 40,821
---------- ---------- ------------
Cash generated from operations 83,712 92,499 246,370
Income tax paid (27,337) (30,023) (61,598)
---------- ---------- ------------
Net cash from operating activities 56,375 62,476 184,772
---------- ---------- ------------
Cash flows from investing activities
Purchases of property, plant and
equipment (9,530) (12,723) (21,982)
Purchases and capitalisation of
intangible assets (1,848) (6,558) (9,693)
Proceeds from the sale of property,
plant and equipment, and computer
software 85 336 2,080
Interest received 829 392 1,104
---------- ---------- ------------
Net cash used in investing activities (10,464) (18,553) (28,491)
---------- ---------- ------------
Cash flows from financing activities
Dividends paid (33,889) (32,740) (133,247)
Interest paid (266) (527) (1,213)
Lease liability repayment (18,779) (17,047) (35,896)
Issue of own shares for the exercise
of options 759 276 447
Purchase of shares into the employee
benefit trust (17,529) (14,837) (14,838)
Net cash used in financing activities (69,704) (64,875) (184,747)
---------- ---------- ------------
Net decrease in cash and cash
equivalents (23,793) (20,952) (28,466)
Cash and cash equivalents at the
beginning of the period 131,480 153,983 153,983
Exchange (loss)/gain on cash and
cash equivalents (9,748) 3,196 5,963
Cash and cash equivalents at the
end of the period 13 97,939 136,227 131,480
---------- ---------- ------------
Notes to the condensed set of interim results
For the six months ended 30 June 2023
1. General information
The information for the year ended 31 December 2022 does not
constitute statutory accounts as defined in section 435 of the
Companies Act 2006. A copy of the statutory accounts for that year
has been delivered to the Registrar of Companies. The auditors
reported on those accounts: their report was unqualified, did not
draw attention to any matters by way of emphasis and did not
contain a statement under section 498(2) or (3) of the Companies
Act 2006.
The unaudited interim condensed consolidated financial
statements of PageGroup plc and its subsidiaries (collectively, the
Group) for the six months ended 30 June 2023 were authorised for
issue in accordance with a resolution of the directors on 4 August
2023.
2. Accounting policies
Basis of preparation
The unaudited interim condensed consolidated financial
statements for the six months ended 30 June 2023 have been prepared
in accordance with UK adopted IAS 34 'Interim financial reporting'
and with the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority.
The unaudited interim condensed consolidated financial
statements do not constitute the Group's statutory financial
statements. The Group's most recent statutory financial statements,
which comprise the annual report and audited financial statements
for the year ended 31 December 2022, were approved by the directors
on 9 March 2023. The interim condensed consolidated financial
statements should be read in conjunction with the Annual Report and
Accounts for the year ended 31 December 2022, which have been
prepared in accordance with UK-adopted international accounting
standards ("IFRSs").
Going concern
The Board has undertaken a review of the Group's forecasts and
associated risks and sensitivities, in the period from the date of
approval of the interim financial statements to August 2024 (review
period).
The Group had GBP97.9m of cash as at 30 June 2023, with no debt
except for IFRS 16 lease liabilities of GBP103.6m. Debt facilities
relevant to the review period comprise a committed GBP80m RCF
maturing December 2027, an uncommitted UK trade debtor discounting
facility (up to GBP50m depending on debtor levels) and an
uncommitted GBP20m UK bank overdraft facility. None of these
facilities were in use as at 30 June 2023.
Despite the macroeconomic and political uncertainty that
currently exists, and its inherent risk and impact on the business,
based on the analysis performed there are no plausible downside
scenarios that the Board believes would cause a liquidity issue.
Having considered the Group's forecasts, the level of cash
resources available to the business and the Group's borrowing
facilities, the Group's geographical and discipline
diversification, limited concentration risk, as well as the ability
to manage the cost base, the Board has concluded that the Group and
therefore the Company has adequate resource to continue in
operation existence for the period through to August 2024.
New accounting standards, interpretations and amendments adopted
by the Group
The accounting policies adopted in the preparation of the
interim condensed consolidated financial statements are consistent
with those followed in the preparation of the Group's annual
consolidated financial statements for the year ended 31 December
2022. The Group has not early adopted any standard, interpretation
or amendment that has been issued but is not yet effective.
The IASB published on 23 May 2023 International Tax Reform -
Pillar Two Model Rules (Amendments to IAS 12) which was adopted by
the UKEB on 19th July 2023. Page Group has applied the mandatory
temporary exception to the accounting for deferred taxes arising
from the jurisdictional implementation of the Pillar Two model
rules to our FY23 Interim reporting.
3. Segment reporting
All revenues disclosed are derived from external customers.
The accounting policies of the reportable segments are the same
as the Group's accounting policies. Segment operating profit
represents the profit earned by each segment including allocation
of central administration costs. This is the measure reported to
the Group's Board, the chief operating decision maker, for the
purpose of resource allocation and assessment of segment
performance.
(a) Revenue, gross profit and operating profit by reportable segment
Revenue Gross Profit
---------------------------------- ---------------------------------------
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2023 2022 2022 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
EMEA 580,539 522,981 1,069,346 288,400 266,683 538,488
Asia Pacific 149,842 159,329 318,359 83,416 102,046 195,276
Americas 150,971 137,302 282,942 89,047 94,188 193,397
United Kingdom 152,534 157,645 319,640 65,928 75,986 149,133
1,033,886 977,257 1,990,287 526,791 538,903 1,076,294
---------- -------- ------------ ------------ ----------- ------------
Operating Profit
---------------------------------------
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
EMEA 47,818 65,283 122,079
Asia Pacific 4,458 20,952 35,244
Americas 5,927 13,822 17,885
United Kingdom 5,654 15,260 20,871
------------ ----------- ------------
Operating profit 63,857 115,317 196,079
Financial expense (549) (820) (1,713)
Profit before
tax 63,308 114,497 194,366
------------ ----------- ------------
The above analysis by destination is not materially different to
analysis by origin.
The analysis below is of the carrying amount of reportable
segment assets, liabilities and non-current assets. Segment assets
and liabilities include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis. The
individual reportable segments exclude current income tax assets
and liabilities. Intangible Assets include computer software,
goodwill and other intangibles.
(b) Segment assets, liabilities and non-current assets by reportable segment
Total Assets Total Liabilities
----------------------------------------------- --------------------------------------
Six months ended Year ended Six months ended Year ended
30
30 June June 31 December 30 June 30 June 31 December
2023 2022 2022 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
EMEA 320,385 315,833 338,251 249,084 210,853 248,585
Asia Pacific 108,769 142,008 128,299 62,871 64,930 69,995
Americas 109,488 115,299 116,647 51,310 47,642 60,635
United Kingdom 171,132 208,506 194,514 18,293 60,194 45,476
------------ ------------ -------------- -------- -------- ----------------
Segment
assets/liabilities 709,774 781,646 777,711 381,558 383,619 424,691
Income tax 21,095 22,048 17,233 15,457 32,785 18,050
730,869 803,694 794,944 397,015 416,404 442,741
------------ ------------ -------------- -------- -------- ----------------
Property, Plant & Equipment Intangible Assets
----------------------------------------------- --------------------------------------
Six months ended Year ended Six months ended Year ended
30
30 June June 31 December 30 June 30 June 31 December
2023 2022 2022 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
EMEA 15,092 12,730 14,072 2,122 2,197 2,296
Asia Pacific 5,041 6,383 6,194 58 172 110
Americas 6,899 7,542 7,378 4 6 5
United Kingdom 10,633 6,596 8,479 33,555 42,401 37,589
37,665 33,251 36,123 35,739 44,776 40,000
------------ ------------ -------------- -------- -------- ----------------
Right-of-use Assets Lease Liabilities
------------------------------------- ---------------------------------------
Six months ended Year ended Six months ended Year ended
30
30 June June 31 December 30 June 30 June 31 December
2023 2022 2022 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
EMEA 60,292 52,621 61,760 66,967 56,130 65,136
Asia Pacific 15,110 16,493 17,415 15,715 17,509 20,042
Americas 10,026 10,072 11,950 12,676 12,943 14,434
United Kingdom 7,967 14,002 9,871 8,269 15,042 10,220
93,395 93,188 100,996 103,627 101,624 109,832
--------- -------- -------------- -------- -------- ------------
The below analyses in notes (c) and (d) relates to the
requirement of IFRS 15 to disclose disaggregated revenue
streams.
(c) Revenue and gross profit generated from permanent and temporary placements
Revenue Gross Profit
------------------------------------- ---------------------------------
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2023 2022 2022 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Permanent 395,569 426,975 832,014 392,202 422,133 826,321
Temporary 638,317 550,282 1,158,273 134,589 116,770 249,973
1,033,886 977,257 1,990,287 526,791 538,903 1,076,294
------------ --------- ------------ --------- -------- ------------
(d) Revenue generated from permanent and temporary placements by reportable segment
Permanent Temporary
------------------------------------ ---------------------------------------
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2023 2022 2022 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
EMEA 199,879 192,132 380,002 380,660 330,849 689,344
Asia Pacific 70,690 89,854 170,029 79,152 69,475 148,330
Americas 78,073 84,974 170,970 72,898 52,328 111,972
United Kingdom 46,927 60,015 111,013 105,607 97,630 208,627
395,569 426,975 832,014 638,317 550,282 1,158,273
-------- -------- -------------- -------- -------- ------------
The below analyses in notes (e) revenue and gross profit by
discipline (being the professions of candidates placed) and (f)
revenue and gross profit by strategic market have been included as
additional disclosure over and above the requirements of IFRS 8
"Operating Segments".
(e) Revenue and gross profit by discipline
Revenue Gross Profit
---------------------------------- ---------------------------------
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2023 2022 2022 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Accounting
and Financial
Services 367,273 354,229 720,783 167,433 168,391 343,659
Legal, Technology,
HR, Secretarial
and Other 352,448 321,332 667,543 162,281 167,871 334,772
Engineering,
Property &
Construction,
Procurement
& Supply Chain 217,835 199,154 400,959 127,689 126,735 251,686
Marketing,
Sales and Retail 96,330 102,542 201,002 69,388 75,906 146,177
1,033,886 977,257 1,990,287 526,791 538,903 1,076,294
---------- -------- ------------ --------- -------- ------------
(f) Revenue and gross profit by strategic market
Revenue Gross Profit
---------------------------------- ---------------------------------
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2023 2022 2022 2023 2022 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Large, Proven
markets 524,692 505,917 1,015,599 241,961 245,429 483,627
Large, High
Potential markets 359,314 334,214 688,925 194,274 208,007 417,296
Small and Medium,
High Margin
markets 149,880 137,126 285,763 90,556 85,467 175,371
1,033,886 977,257 1,990,287 526,791 538,903 1,076,294
---------- -------- ------------ --------- -------- ------------
4. Financial income / (expenses)
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Financial income
Bank interest receivable 829 392 1,104
--------- -------- ------------
Financial expenses
Bank interest payable (266) (527) (1,213)
Interest on lease liabilities (1,112) (685) (1,604)
(1,378) (1,212) (2,817)
--------- -------- ------------
5. Income tax expense
Taxation for the six month period is charged at 31.9% (six
months ended 30 June 2022: 28.8%; year ended 31 December 2022:
28.5%), representing the best estimate of the average annual
effective tax rate expected for the full year together with known
prior year adjustments applied to the pre-tax income for the six
month period.
6. Dividends
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Amounts recognised as distributions to equity
holders in the period:
Final dividend for the year ended 31 December
2022 of 10.76p per ordinary share (2021:
10.30p) 33,889 32,740 32,740
Interim dividend for the period ended 30
June 2022 of 4.91p per ordinary share (2021:
4.70p) - - 15,607
Special dividend for the year ended 31 December
2022 of 26.71p per ordinary share (2021:
0p) - - 84,900
33,889 32,740 133,247
--------- -------- --------------
Amounts proposed as distributions to equity
holders in the period:
Proposed interim dividend for the period
ended 30 June 2023 of 5.13p per ordinary
share (2022: 4.91p) 16,161 15,607
--------- -------- --------------
Proposed special dividend for the year ended
31 December 2023 of 15.87p per ordinary share
(2022: 26.71p) 50,000 84,900
--------- -------- --------------
Proposed final dividend for the year ended
31 December 2022 of 10.76p per ordinary share - - 34,207
--------- -------- --------------
The proposed interim and special dividends have not been
approved by the Board at 30 June 2023 and therefore have not been
included as a liability. The comparative interim and special
dividends at 30 June 2022 were also not recognised as a liability
in the prior period.
The proposed interim dividend of 5.13p (2022: 4.91p) per
ordinary share and special dividend of 15.87p (2022: 26.71p) per
ordinary share will be paid on 13 October 2023 to shareholders on
the register at the close of business on 1 September 2023.
7. Share-based payments
In accordance with IFRS 2 "Share-based Payment", a charge of
GBP2.6m has been recognised for share options and other share-based
payment arrangements (including social charges) (30 June 2022:
GBP2.1m, 31 December 2022 : GBP6.0m).
8. Earnings per ordinary share
The calculation of the basic and diluted earnings per share is
based on the following data:
Six months ended Year ended
30 June 30 June 31 December
Earnings 2023 2022 2022
Earnings for basic and diluted earnings per
share (GBP'000) 43,132 81,497 139,012
--------- -------- ------------
Number of shares
Weighted average number of shares used for
basic earnings per share ('000) 316,436 318,473 318,166
Dilution effect of share plans ('000) 1,494 843 1,204
Diluted weighted average number of shares
used for diluted earnings per share ('000) 317,930 319,316 319,370
--------- -------- ------------
Basic earnings per share (pence) 13.6 25.6 43.7
Diluted earnings per share (pence) 13.6 25.5 43.5
The above results all relate to continuing operations.
9. Property, plant and equipment
Acquisitions
During the period ended 30 June 2023 the Group acquired
property, plant and equipment with a cost of GBP9.5 m (30 June
2022: GBP12.7m).
10. Trade and other receivables
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Current
Trade receivables 272,047 306,557 320,794
Less allowance for expected credit losses (12,429) (12,361) (12,960)
--------- --------- ------------
Net trade receivables 259,618 294,196 307,834
Other receivables 7,149 4,658 21,535
Accrued income (net of revenue reversals) 112,278 112,994 88,951
Prepayments 32,680 29,426 18,927
411,725 441,274 437,247
--------- --------- ------------
Non-current
Other receivables 12,890 12,989 13,224
--------- --------- ------------
11. Trade and other payables
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Current
Trade payables 3,192 5,023 11,101
Other tax and social security 50,593 45,368 61,079
Other payables 17,676 35,847 36,629
Accruals 186,847 170,720 180,299
258,308 256,958 289,108
-------- -------- ------------
Non-current
Accruals 8,455 13,883 14,529
Other tax and social security - - 422
8,455 13,883 14,951
-------- -------- ------------
12. Provisions
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Dilapidations 6,528 7,212 7,128
NI on share schemes 694 954 844
Other 1,327 1,513 1,483
8,549 9,679 9,455
-------- -------- ------------
Current 3,737 2,236 2,772
Non-Current 4,812 7,443 6,683
8,549 9,679 9,455
-------- -------- ------------
13. Cash and cash equivalents
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
Cash at bank and in hand 97,939 136,227 131,480
Short-term deposits - - -
-------- -------- ------------
Cash and cash equivalents 97,939 136,227 131,480
Cash and cash equivalents in the statement
of cash flows 97,939 136,227 131,480
-------- -------- ------------
The Group operates multi-currency cash concentration and
notional cash pools, and an interest enhancement facility. The
Eurozone subsidiaries and the UK-based Group Treasury subsidiary
participate in the cash concentration arrangement, the Group
Treasury subsidiary retains the notional cash pool and the Asia
Pacific subsidiaries operate the interest enhancement facility. The
structures facilitate interest compensation of cash whilst
supporting working capital requirements.
PageGroup maintains a Confidential Invoice Facility with HSBC
whereby the Group has the option to discount facilities in order to
advance cash on its receivables. The facility is used only ad hoc
in case the Group needs to fund any major GBP cash outflow.
RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:-
a) the condensed set of interim financial statements has been
prepared in accordance with UK adopted IAS 34 "Interim Financial
Reporting"
b) the interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
c) the interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
On behalf of the Board
N Kirk K Stagg
Chief Executive Officer Chief Financial Officer
4 August 2023
Copies of the condensed interim financial statements are now
available and can be downloaded from the Company's website:
https://www.page.com/presentations/year/2023
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END
IR NKQBQFBKDKFK
(END) Dow Jones Newswires
August 07, 2023 02:00 ET (06:00 GMT)
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