PageGroup PLC · LSE:PAGE
PageGroup — Michael Page International — FY2004 Earnings Presentation
31 slides from PageGroup's earnings presentation, Feb 23, 2005
Slide 1: 2004 Preliminary Results
1 23 February 2005 2004 Preliminary Results 2004 PRELIMINARY RESULTS 23 February 2005 Michael Page International is a world leading recruitment consultancy 110 offices in 16 countries worldwide | www.michaelpage.co.uk
Slide 2: Overview
2 23 February 2005 2004 Preliminary Results Overview • Considerably improved results as markets strengthen • Increased activity in the UK, Asia Pacific and Americas • Trading conditions in Continental Europe improving • Operating profits increase by 75% from 18% higher revenue • Significantly increa
Slide 3: Agenda
3 23 February 2005 2004 Preliminary Results Agenda • • Financial Results and segmental analysis Geographical Review • Current trading and strategy Michael Page International is a world leading recruitment consultancy 110 offices in 16 countries worldwide | www.michaelpage.co.uk
Slide 4: Profit and loss
4 23 February 2005 2004 Preliminary Results Profit and 2004 Change £m % 2003 £m loss Turnover 433.7 16.4% 372.6 Revenue 210.6 18.0% 178.5 (before exceptional Operating profit 40.0 75.0% 22.9 items) Net interest 0.0 0.6 Profit before tax 40.0 70.3% 23.5 Taxation (13.9) (9.0) Profit after tax 26.1 79.
Slide 5: Taxation
5 23 February 2005 2004 Preliminary Results Taxation 2004 £m Profit before tax 40.0 Taxation on profits (13.9) Exceptional tax credit 9.0 Taxation for the year (4.9) Effective rate % (before exceptional tax credit) 34.8% • Exceptional tax credit arises on vesting of IPO Restricted Share Scheme • Ded
Slide 6: Earnings per share and dividends
6 23 February 2005 2004 Preliminary Results Earnings Earnings per share 2004 2003 Basic 10.0p 3.8p per share Before exceptional 7.4p +80% 4.1p and Dividend Interim - per share 1.25p 1.1p dividends Final Total - per share - per share 2.75p 4.00p +17.6% 2.3p 3.4p Final payable on 3 June 2005 Michael P
Slide 7: Share repurchases
7 23 February 2005 2004 Preliminary Results Share • • Repurchased 14,225,000 shares during 2004 6,460,000 shares were cancelled repurchases • 7,765,000 are held in treasury • Treasury shares do not receive dividends and not counted for EPS • Total cost of repurchases £24.12m • Average cost per share
Slide 8: Cash flow
8 23 February 2005 2004 Preliminary Results Cash flow 2004 £m 2003 £m Operating profit before exceptional items 40.0 22.9 Exceptional items - (1.1) Depreciation/amortisation/share scheme charges 6.9 7.9 Increase in debtors (17.7) (0.3) Increase/(decrease) in creditors 11.5 (0.4) (Decrease)/increase
Slide 9: Balance sheet
9 23 February 2005 2004 Preliminary Results Balance 2004 £m 2003 £m sheet Goodwill 1.4 1.5 Tangible assets 20.9 23.1 Total fixed assets 22.4 24.6 Debtors 88.2 71.5 Creditors (70.9) (59.0) 17.3 12.5 Net cash 12.2 22.4 Provisions (1.2) (6.2) Net assets 50.7 53.3 Michael Page International is a world l
Slide 10: Discipline Analysis
10 23 February 2005 2004 Preliminary Results Discipline Turnover 2004 £m % 2003 £m % Analysis Finance & Accounting 290.2 66.9% 256.7 68.9% Marketing, Sales, Retail 74.0 17.1% 61.8 16.6% Other 69.6 16.0% 54.1 14.5% 433.7 372.6 Revenue Finance & Accounting 129.7 61.6% 113.6 63.6% Marketing, Sales, Ret
Slide 11: Perm/Temp Analysis
11 23 February 2005 2004 Preliminary Results Perm/Temp Turnover 2004 £m % 2003 £m % Analysis Permanent 158.5 36.5% 128.8 34.6% Temporary 275.2 63.5% 243.8 65.4% 433.7 372.6 Revenue Permanent 148.6 70.6% 121.8 68.3% Temporary 62.0 29.4% 56.7 31.7% 210.6 178.5 Gross Margin Group 48.6% 47.9% Permanent
Slide 12: IFRS
12 23 February 2005 2004 Preliminary Results IFRS • First reported results under IFRS will be 2005 interims • Progress to date – Identified key accounting and policy changes – Quantified impact of changes on P&L and net assets – Established procedures for capturing additional disclosure requirements
Slide 13: IFRS
13 23 February 2005 2004 Preliminary Results IFRS • Share based payments – LTIP already being expensed so only additional charge is in respect of share options – Charge for share options in 2004 of £0.9m (2003: £0.4m) • Goodwill – Annual charge of £0.1m will not be incurred in the future. However an
Slide 14: Agenda
14 23 February 2005 2004 Preliminary Results Agenda • • Financial results and segmental analysis Geographical review • Current trading and strategy Michael Page International is a world leading recruitment consultancy 110 offices in 16 countries worldwide | www.michaelpage.co.uk
Slide 15: Results: Geographical analysis of revenue
15 23 February 2005 2004 Preliminary Results 2004 2004 £m % 2003 £m % Results United Kingdom 110.0 52% 90.6 51% Geographical Continental Europe 61.5 29% 58.2 33% analysis of revenue Asia Pacific 31.5 15% 25.0 14% Americas 7.6 4% 4.6 3% 210.6 100% 178.5 100% Michael Page International is a world lead
Slide 16: Results: United Kingdom
16 23 February 2005 2004 Preliminary Results 2004 2004 2004 H2 on H1 2004 2003 H1 H2 change Year Year Results Turnover £m 111.5 £m % 123.3 10.7% £m 234.8 £m 194.3 United Kingdom Revenue 53.1 56.8 7.0% 110.0 90.6 Operating profit 11.1 12.5 12.9% 23.6 15.6 Operating margin 20.9% 22.0% 21.5% 17.3% Head
Slide 17: Results: United Kingdom - Finance and Accounting
17 23 February 2005 2004 Preliminary Results 2004 FINANCE AND ACCOUNTING • Represents 62% of UK business with revenue Results increasing by 17% • Finance Q4 revenue highest in year despite United Kingdom December • New MP Finance office in Maidstone • City revenue improved significantly particularly
Slide 18: Results: United Kingdom - Sales, Marketing and Retail
18 23 February 2005 2004 Preliminary Results 2004 SALES, MARKETING AND RETAIL • 23% of UK revenue; 24% higher than 2003 Results • Increasing activity across all sectors United Kingdom • Developing a strong temping business • Retail’s growth rate slower reflecting tougher marketplace • National cover
Slide 19: Results: United Kingdom - Legal, Technology, HR and others
19 23 February 2005 2004 Preliminary Results 2004 LEGAL, TECHNOLOGY, HR, SECRETARIAL, ENGINEERING & SUPPLY CHAIN Results • Legal another good year with solid growth • Technology produced trading profit versus United Kingdom breakeven in 2003 • HR strong growth as a result of geographic expansion • E
Slide 20: Results: Continental Europe
20 23 February 2005 2004 Preliminary Results 2004 2004 2004 H2 on H1 2004 2003 H1 H2 change Year Year Results Turnover £m 59.8 £m 64.5 % 7.7% £m 124.3 £m 120.4 Continental Europe Revenue 29.7 31.8 7.3% 61.5 58.2 Operating profit 1.5 2.9 92.4% 4.4 (0.3) Operating margin 5.1% 9.1% 7.2% -0.5% Headcount
Slide 21: Results: Continental Europe
21 23 February 2005 2004 Preliminary Results 2004 • France - Revenue 6% lower and represents 16% of 2004 Group revenue Results • France - Permanent revenue flat, temp revenue 15% lower Continental Europe • French trading conditions remained very difficult only achieving modest year over year growth
Slide 22: Results: Asia Pacific
22 23 February 2005 2004 Preliminary Results 2004 2004 2004 H2 on H1 2004 2003 H1 H2 change Year Year Results Turnover £m 27.9 £m % 34.8 24.8% £m 62.8 £m 51.4 Asia Pacific Revenue 14.3 17.2 20.2% 31.5 25.0 Operating profit 4.8 6.8 39.9% 11.6 7.6 Operating margin 33.7% 39.2% 36.7% 30.3% Headcount at
Slide 23: Results: Asia Pacific
23 23 February 2005 2004 Preliminary Results 2004 • Australian revenue up by 16.7% driven by continuing strong demand from manufacturing and Results • mining Started Finance in Brisbane and rolled out Asia Pacific Engineering to Sydney • Hong Kong & Singapore; spectacular 2004, growing revenue 45%+
Slide 24: Results: Americas
24 23 February 2005 2004 Preliminary Results 2004 2004 2004 H2 on H1 2004 2003 H1 H2 change Year Year Results Turnover £m 5.3 £m % 6.5 22.1% £m 11.8 £m 6.6 Americas Revenue 3.3 4.3 29.8% 7.6 4.6 Operating profit 0.2 0.3 0.5 (0.1) Operating margin 6.1% 5.9% 6.0% -1.3% Headcount at period end 123 137
Slide 25: Results: Americas
25 23 February 2005 2004 Preliminary Results 2004 • USA now five offices with openings in Chicago and Boston Results • Continue to add to headcount in the existing offices • Researching next investments during H1 2005 Americas • Brazil; another very successful year • Started Sales & Marketing which
Slide 26: Agenda
26 23 February 2005 2004 Preliminary Results Agenda • • Financial results and segmental analysis Geographical review • Current trading and strategy Michael Page International is a world leading recruitment consultancy 110 offices in 16 countries worldwide | www.michaelpage.co.uk
Slide 27: Global Job Count
27 23 February 2005 2004 Preliminary Results Global Job Count www.michaelpage.co.uk Michael Page International is a world leading recruitment consultancy 110 offices in 16 countries worldwide | www.michaelpage.co.uk
Slide 28: Group Quarterly Revenue Trend Q1 2001 to Q4 2004
28 23 February 2005 2004 Preliminary Results Group Quarterly Revenue Trend Q1 2001 to Q4 2004 Michael Page International is a world leading recruitment consultancy 110 offices in 16 countries worldwide | www.michaelpage.co.uk
Slide 29: Strategy
29 23 February 2005 2004 Preliminary Results Strategy • • Remains unchanged Organically grow existing offices • Roll out existing disciplines • Open new offices • Enter new geographic markets • Continue to invest in people and systems Michael Page International is a world leading recruitment consult
Slide 30: Current Trading
30 23 February 2005 2004 Preliminary Results Current • Good activity levels in UK, Asia pacific and The Americas Trading • Conditions improving in Continental Europe but still tough • France only achieved growth in Q4 • Investing in a large number of our businesses for future growth • Plan to open a
Slide 31: 2004 Preliminary Results
31 23 February 2005 2004 Preliminary Results Michael Page International is a world leading recruitment consultancy 110 offices in 16 countries worldwide | www.michaelpage.co.uk
Michael Page International — FY2004 Earnings Presentation on 6ix