Pagegroup Plc · LSE:PAGE
Pagegroup — H1 2023 Earnings Presentation
22 slides from Pagegroup's earnings presentation, 2023
Slide 1: Half Year Results 2023
Overview Financial Review Outlook Half Year Results 2023
Slide 2: Headline Numbers
Overview Financial Review Outlook Headline Numbers Kelvin Stagg Chief Financial Officer
Slide 3: Key financial highlights
Overview Financial Review Outlook Key financial highlights Group operating profit of £63.9m Gross Profit £526.8m Operating £63.9m Profit £115.3m H1 2022 £538.9m H1 2022 -4.4% 12.1% Conversion Constant Currency Rate vs 2022 21.4% H1 2022 +26% Basic EPS 13.6p +26% Interim Dividend Per share 5.13p 25.6
Slide 4: Financial Review
Overview Financial Review Outlook Financial Review
Slide 5: Productivity down 6% on H1 2022
Overview Financial Review Outlook Productivity down 6% on H1 2022 Up 5% sequentially on H2 2022 • Activity levels remain strong Fee Earners Gross Profit per fee earner (£k) constant 95 7000 • Continued high fee rates 85 6000 75 5000 currency • Wage inflation noted across most markets 65 4000 Fee Ear
Slide 6: Lower conversion rates across all regions
Overview Financial Review Outlook Lower conversion rates across all regions Group Conversion Rate of 12.1% H1 2023 H1 2022 GP Growth Operating Conversion Operating Conversion £m Gross Profit Gross Profit Rate (CC %) Profit Rate Profit Rate Group 526.8 -4.4% 63.9 12.1% 538.9 115.3 21.4% EMEA 288.4 +4
Slide 7: Effective Tax Rate (ETR)
Overview Financial Review Outlook Effective Tax Rate (ETR) Effective tax rate increased on 2022 £m H1 2023 H1 2022 Profit Before Tax 63.3 114.5 Tax Charge 20.2 33.0 Effective Tax Rate 31.9% 28.8% • Expect tax rate of c. 30% for the full year, due to increase in UK Corporation tax rate from 19% to 25
Slide 8: A strong and robust balance sheet
Overview Financial Review Outlook A strong and robust balance sheet Net cash of £97.9m £m H1 2023 H1 2022 Intangible assets 35.7 44.8 Tangible assets 37.7 33.3 Lease assets 93.4 93.2 Trade and other receivables 424.6 454.3 Trade, other payables, current and deferred taxes (251.8) (272.9) Lease Liabi
Slide 9: Strong cash flow generation
Overview Financial Review Outlook Strong cash flow generation Final 2022 dividend payment of £33.9m in June 250 14.7 210 26.8 98.4 11.3 170 18.8 17.5 £m 130 215.2 188.4 33.9 0.8 177.1 9.7 158.3 90 131.5 131.5 140.8 106.9 107.7 97.9 97.9 50 Dec 22 EBITDA Working Tax and Net capex Lease EBT Dividends
Slide 10: Clear capital allocation strategy
Overview Financial Review Outlook Clear capital allocation strategy £66m total dividend to be paid in October 1st use of cash 2nd use of cash 3rd use of cash To satisfy operational To maintain the and investment ordinary dividend To make requirements, and to through downturns supplementary returns h
Slide 11: Outlook
Overview Financial Review Outlook Outlook
Slide 12: Outlook
Overview Financial Review Outlook Outlook 2023 Full Year Operating Profit to be in line with our previous guidance High level of global macro-economic and political uncertainty Candidate shortages and good levels of vacancies Benefits from investments in innovation and technology Well positioned des
Slide 13: Appendix
Overview Financial Review Outlook Appendix
Slide 14: Our business model
Overview Financial Review Outlook Our business model 14
Slide 15: A growing international business
Overview Financial Review Outlook A growing international business Delivering on our global diversification strategy Gross Profit 10% 17% 15% 17% 37% Large, High 30% Potential Markets Large Established Markets Small and 46% Medium, High 73% 55% Margin Markets FY 2007 FY 2013 H1 2023 15
Slide 16: Significant variations in recruitment mix
Overview Financial Review Outlook Significant variations in recruitment mix Geography Brands 13% 15% 17% 32% 29% 46% 87% 85% 83% 68% 71% 54% EMEA Americas Asia Pacific UK Michael Page Page Personnel Temp Perm 16
Slide 17: Long term fee earner & international growth
Overview Financial Review Outlook Long term fee earner & international growth 8,000 ASIA EMEA AMERICAS UK PACIFIC Fee Earner Headcount 7,000 6,000 5,000 4,000 3,000 3,137 2,000 1,333 1,000 1,077 838 - 1985-1990 1990-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 18: Quarterly gross profit & fee earners
Overview Financial Review Outlook Quarterly gross profit & fee earners Quarterly gross profit reduced from Q4 2022 7000 300 6000 250 5000 Gross Profit (£m) as reported 200 4000 Fee Earners 150 3000 100 2000 50 1000 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 19: Year-on-Year gross profit growth rates
Overview Financial Review Outlook Year-on-Year gross profit growth rates 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 EMEA +3.6% +75.8% +45.8% +48.0% +41.1% +29.4% +22.1% +11.9% +6.8% +1.7 Asia Pacific +15.3% +89.7% +68.2% +48.7% +35.8% +11.7% -3.9% -15.8% -17.0% -17.3% – Asia +22.2% +93.1.% +69.0%
Slide 20: Contacts and Calendar
Overview Financial Review Outlook Contacts and Calendar Contacts Date Event Julia Dickson – Group Financial Controller 11 October 2023 Q3 2023 Trading Update Tel: +44 (0) 1932 264 032 Email: [email protected] Web: https://www.page.com/investors 20
Slide 21: Disclaimer
Overview Financial Review Outlook 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 inten
Slide 22: Overview Financial Review Outlook
Overview Financial Review Outlook 22