Pagegroup Plc · LSE:PAGE
Pagegroup — Q4 2018 Earnings Presentation
25 slides from Pagegroup's earnings presentation, Jan 14, 2019
Slide 1: A record Quarter and Year for the Group
14 January 2019 Steve Ingham Chief Executive Officer Q4 2018 and FY18 Trading Update Kelvin Stagg Chief Financial Officer “A record Quarter and Year for LSE: PAGE.L the Group” Website: http://www.page.com/investors
Slide 2: Headline Numbers
Headline Numbers Kelvin Stagg, Chief Financial Officer
Slide 3: A record Quarter and Year for the Group
Headline Numbers Financial Review Regional Review Summary Q4 18 A record Quarter and Year for the Group Key financial highlights Gross Profit £211.1m Growth in +15.4% Q4 Constant £182.4m Q4 2017 +15.9% FY 2018 Currency Q4 Gross Profit £815.0m Reported +15.8% FY Rates Q4 £711.6m FY 2017 +14.5% FY 201
Slide 4: Financial Review
Financial Review
Slide 5: Growth across brands in Perm and Temp
Headline Numbers Financial Review Regional Review Summary Q4 18 Growth across brands in Perm and Temp Business balance reflects brands and geographic mix 16% 24% 42% 58% 76% 84% Perm Temp Perm Temp Perm Temp • Gross Profit growth in • Gross Profit growth in • Gross Profit growth in permanent +17.6%
Slide 6: Discipline diversification progress
Headline Numbers Financial Review Regional Review Summary Q4 18 Discipline diversification progress Professional Services disciplines delivered strongest growth 16% Q4 2018 £m 2017 £m Reported % Constant % 35% Finance Accounting and Financial Gross Profit 74.6 66.7 +11.8% +11.7% Services 24% by Disc
Slide 7: A new record headcount
Headline Numbers Financial Review Regional Review Summary Q4 18 A new record headcount Ratio of fee earners to support staff at a new record of 79:21 Total headcount • Increase in fee earners of 58 (+1.0%) +0.7% 8,000 • Fee earner headcount added in our Large, High Potential markets, as well as wher
Slide 8: Gross Profit (£m) as reported
Gross Profit (£m) as reported 50 0 100 150 200 250 Q1 49.5 Q2 51.4 Q3 47.8 Headline Numbers 2002 Q4 43.9 Q1 42.8 Q2 45.0 Q3 45.0 2003 Q4 45.7 Q1 48.1 Q2 52.3 Q3 53.5 2004 Q4 56.7 Q1 59.9 Q2 68.3 Q3 69.2 2005 Q4 70.2 Q1 79.2 Q2 87.4 Q3 89.1 2006 Q4 93.1 Q1 105.5 Q2 121.0 Q3 123.4 2007 Q4 128.2 Q1 140
Slide 9: Regional Review
Regional Review Steve Ingham, Chief Executive Officer
Slide 10: Q4 growth rate of 15.4%
Headline Numbers Financial Review Regional Review Summary Q4 18 Q4 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% Q4 2018 £m 2017 £m Reported %
Slide 11: EMEA delivered a record quarter
Headline Numbers Financial Review Regional Review Summary Q4 18 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 Other 15% comparator in Q4 2017 of +28% • I
Slide 12: Asia Pacific continues strong growth
Headline Numbers Financial Review Regional Review Summary Q4 18 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 Japan 14% aro
Slide 13: UK second consecutive quarter of growth
Headline Numbers Financial Review Regional Review Summary Q4 18 UK second consecutive quarter of growth Strongest growth in Page Personnel • Brexit continued to weigh on market sentiment, particularly with more senior candidates Midlands 18% • Page Personnel +12% London • Michael Page -1% 36% Gross
Slide 14: Americas was our fastest growing region
Headline Numbers Financial Review Regional Review Summary Q4 18 Americas was our fastest growing region Record quarter for Latin America • US +32%, Canada +20% Rest of • Boston, Houston and Los Angeles standout performances Latam 15% • Latin America +28%: Brazil +25%; Mexico +30% Canada 6% • All oth
Slide 15: Summary
Summary
Slide 16: A record Quarter and Year for the Group
Headline Numbers Financial Review Regional Review Summary Q4 18 A record Quarter and Year for the Group All four regions delivered growth Group Gross Profit growth rate of +15.4% 20 countries delivered YoY growth of over 20% Continued investment in Large, High Potential markets Record fee earner and
Slide 17: Appendix
Appendix
Slide 18: Our business model
Headline Numbers Financial Review Regional Review Summary Q4 18 Our business model 18
Slide 19: A growing international business
Headline Numbers Financial Review Regional Review Summary Q4 18 A growing international business Delivering on our global diversification strategy Gross Profit 16% 24% 39% 61% 76% 84% FY 2007 FY 2013 Q4 2018 UK International 19
Slide 20: Significant variations in recruitment mix
Headline Numbers Financial Review Regional Review Summary Q4 18 Significant variations in recruitment mix Geography Brands 12% 12% 16% 30% 33% 42% 88% 88% 84% 70% 67% 58% EMEA Asia Pacific UK Americas Michael Page Page Personnel Temp Perm 20
Slide 21: Notable fee earner and international growth
Headline Numbers Financial Review Regional Review Summary Q4 18 Notable fee earner and international growth ASIA 7,000 EMEA UK AMERICAS PACIFIC 6,116 Fee Earner Headcount 6,000 5,497 5,000 4,711 4,484 4,278 3,837 3,654 3,797 3,624 3,810 4,000 3,273 3,000 2,763 2,515 EMEA 2,075 2,000 1,657 1,657 1,70
Slide 22: Fee earner investment and support staff
Headline Numbers Financial Review Regional Review Summary Q4 18 Fee earner investment and support staff 7000 6000 5000 Headcount 4000 3000 2000 1000 0 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 H2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201
Slide 23: Year-on-Year Gross Profit Rates
Headline Numbers Financial Review Regional Review Summary Q4 18 Year-on-Year Gross Profit Rates 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 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% +
Slide 24: Contacts and Calendar
Headline Numbers Financial Review Regional Review Summary Q4 18 Contacts and Calendar Contacts Date Event Jeremy Tatham – Group Financial Controller 6 March 2019 FY 2018 Results Tel: +44 (0) 1932 264 143 10 April 2019 Q1 2019 Trading Update Email: [email protected] Web: https://www.p
Slide 25: Disclaimer
Headline Numbers Financial Review Regional Review Summary Q4 18 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