PageGroup PLC · LSE:PAGE
PageGroup — Michael Page International — FY2002 Earnings Presentation
30 slides from PageGroup's earnings presentation, Feb 26, 2003
Slide 1: 2002 Preliminary Results
Michael Page International 2002 Preliminary Results 26 February 2003 click to enter
Slide 2: 2002 Results Presentation
2002 Preliminary Results 2002 Results Presentation Terry Benson – Chief Executive Stephen Puckett – Finance Director Stephen Burke – UK Managing Director previous page next page
Slide 3: Overview
2002 Preliminary Results Overview • 2002 - challenging year particularly in second half. • Pre tax profit of £32.6m. • Cash from operations of £46.7m. • Continental Europe particularly affected by economic slow down. • Relatively strong performance in Asia Pacific. • Temp ratio and temp margins incr
Slide 4: Agenda
2002 Preliminary Results Agenda • Financial Results and segmental analysis • Geographical Review • Share repurchases, current trading and strategy previous page next page
Slide 5: Profit and Loss
2002 Preliminary Results Profit and Loss 2002 Change 2001 £m % £m Turnover 383.5 -16.6% 459.5 Revenue 192.6 -21.4% 245.1 Operating profit 32.1 -49.8% 64.0 Exceptional items - 2.4 Net interest 0.5 (4.1) Profit before tax 32.6 -47.7% 62.3 Taxation (11.4) (18.6) Profit after tax 21.2 43.7 previous page
Slide 6: First/Second Half Split
2002 Preliminary Results First/Second Half Split 2002 2002 2002 H1 to H2 H1 H2 Year change £m £m £m % Turnover 197.8 185.7 383.5 -6.1% Revenue 100.9 91.7 192.6 -9.0% Costs 83.1 77.4 160.5 -6.8% Operating profit 17.8 14.3 32.1 -19.5% Operating margin 17.6% 15.6% 16.7% Headcount at period end 2,440 2,
Slide 7: Earnings per share and dividends
2002 Preliminary Results Earnings per share and dividends Earnings per share 2002 2001 Basic 5.8p 11.8p Before exceptional 5.8p 10.6p Dividend Interim 1.1p per share Final 2.3p per share Total 3.4p per share Final payable on 6 June 2003 previous page next page
Slide 8: Cash Flow
2002 Preliminary Results Cash Flow 2002 2001 £m £m Operating profit 32.1 58.0 Depreciation and amortisation 8.4 7.8 Decrease in debtors 10.3 17.3 Increase in creditors (4.1) (7.2) Net cash inflow from operating activities 46.7 75.9 Net interest paid 0.5 (4.0) Taxation paid (11.5) (18.1) Net capital
Slide 9: Balance Sheet
2002 Preliminary Results Balance Sheet 2002 2001 £m £m Goodwill 1.6 1.7 Tangible assets 23.5 28.7 Investment in own shares 10.0 10.0 Total Fixed Assets 35.1 40.4 Debtors 70.8 80.7 Creditors (62.4) (67.0) 8.4 13.7 Net cash 21.4 14.3 Provisions (6.0) (6.0) Net assets 58.9 62.4 previous page next page
Slide 10: Discipline Analysis
2002 Preliminary Results Discipline Analysis 2002 2002 2002 2001 H1 H2 Year Year Turnover £m % £m % £m % £m % Finance & Accounting 144.3 72.9% 133.5 71.9% 277.8 72.4% 333.3 72.5% Marketing & Sales 28.2 14.3% 26.3 14.2% 54.6 14.2% 67.6 14.7% Other 25.3 12.8% 25.8 13.9% 51.1 13.3% 58.6 12.7% 197.8 185
Slide 11: Perm / Temp Analysis
2002 Preliminary Results Perm / Temp Analysis 2002 2002 2002 2001 H1 H2 Year Year Turnover £m % £m % £m % £m % Permanent 76.3 38.6% 64.9 35.0% 141.2 36.8% 199.9 43.5% Temporary 121.5 61.4% 120.7 65.0% 242.3 63.2% 259.6 56.5% 197.8 185.7 383.5 459.5 Revenue Permanent 71.0 70.4% 62.0 67.6% 133.0 69.1%
Slide 12: Geographic analysis of revenue
2002 Preliminary Results Geographic analysis of revenue 2002 2002 2002 2001 H1 H2 Year Year £m % £m % £m % £m % United Kingdom 51.9 51.5% 47.4 51.7% 99.3 51.5% 124.7 50.9% Continental Europe 35.2 34.9% 31.1 33.9% 66.3 34.4% 91.6 37.4% Asia Pacific 11.3 11.2% 11.6 12.6% 22.9 11.9% 24.9 10.2% Americas
Slide 13: Agenda
2002 Preliminary Results Agenda • Financial Results and segmental analysis • Geographical Review • Share repurchases, current trading and strategy previous page next page
Slide 14: United Kingdom
2002 Preliminary Results United Kingdom 2002 2002 H1 on H2 2002 2001 H1 H2 change Year Year £m £m % £m £m Turnover 105.8 98.1 -7.3% 203.9 249.4 Revenue 51.9 47.4 -8.8% 99.3 124.7 Operating profit 10.3 10.1 -1.9% 20.4 35.0 Operating margin 19.9% 21.3% 20.6% 28.1% Headcount at period end 1,154 1,116 1
Slide 15: United Kingdom
2002 Preliminary Results United Kingdom Finance and Accounting • Two thirds of UK business. • Revenue 19% lower. • City continued to make good profits. • Accountancy Additions strongest performer. • AA network expanded - Birmingham/Coventry. previous page next page
Slide 16: United Kingdom
2002 Preliminary Results United Kingdom Sales, Marketing and Retail • 22% of revenue and 22% lower than 2001. • Initial weakness of TMT sectors now evident in most other sectors. • Retail comparatively better - in line with sector. previous page next page
Slide 17: United Kingdom
2002 Preliminary Results United Kingdom Legal, Technology, HR and Engineering • Solid year in Legal - now in seven locations. • Technology weak but profitable. • HR revenue increased year on year. • Engineering start up contributed good profit. • HR and Engineering expanding into national network of
Slide 18: Continental Europe
2002 Preliminary Results Continental Europe 2002 2002 H1 on H2 2002 2001 H1 H2 change Year Year £m £m % £m £m Turnover 66.3 61.3 -7.6% 127.6 154.3 Revenue 35.2 31.1 -11.5% 66.3 91.6 Operating profit 4.4 1.2 -71.4% 5.6 22.5 Operating margin 12.4% 4.0% 8.5% 24.5% Headcount at period end 943 928 1,055
Slide 19: Continental Europe
2002 Preliminary Results Continental Europe • France - Permanent revenue 41% lower. • France - Revenue from Page Interim more resilient. • Consolidation of Paris offices. • All other countries faced difficult conditions. • Encouraging start in new Rotterdam office. • Start up losses in Sweden and Be
Slide 20: Asia Pacific
2002 Preliminary Results Asia Pacific 2002 2002 H1 on H2 2002 2001 H1 H2 change Year Year £m £m % £m £m Turnover 22.6 24.1 6.3% 46.7 51.3 Revenue 11.3 11.6 2.9% 22.9 24.9 Operating profit 3.5 3.3 -3.5% 6.8 7.2 Operating margin 30.7% 28.8% 29.8% 29.1% Headcount at period end 282 283 300 previous page
Slide 21: Asia Pacific
2002 Preliminary Results Asia Pacific • Slowdown impacted International businesses in the region. • Australian domestic businesses less affected. • Started HR and Engineering during the year. • Hong Kong and Singapore impacted by weakness in banking, telecoms and technology sectors. • New office in
Slide 22: Americas
2002 Preliminary Results Americas 2002 2002 H1 on H2 2002 2001 H1 H2 change Year Year £m £m % £m £m Turnover 3.1 2.3 -24.4% 5.4 4.5 Revenue 2.5 1.6 -34.9% 4.1 3.9 Operating profit (0.3) (0.4) (0.7) (0.7) Operating margin -14.0% -25.3% -18.1% -18.3% Headcount at period end 61 63 71 previous page next
Slide 23: Americas
2002 Preliminary Results Americas • US market remained weak all year. • New Jersey office opened in December 2001. • New MD, senior transfer from the UK. • Anticipate opening third East Coast office during 2003. • Sao Paulo office continues to expand. • Weak Brazilian currency. previous page next pa
Slide 24: Agenda
2002 Preliminary Results Agenda • Financial Results and segmental analysis • Geographical Review • Share repurchases, current trading and strategy previous page next page
Slide 25: Share Repurchase Programme
2002 Preliminary Results Share Repurchase Programme • Announced in August after three quarters of circa £50m revenue. • Purchased 11.3m shares at 121p. • Anticipate further share repurchases with surplus cash. • No commitments on amount and timing. previous page next page
Slide 26: 2003 Projects
2002 Preliminary Results 2003 Projects NEW IT SYSTEM • Global rollout during 2003 and 2004. • Investment of £6m - £2.5m capex, £3.5m expensed over next two years. NEW LONDON BUILDING • Move expected Easter 2003. • Capex of £2m in 2003. previous page next page
Slide 27: Group Quarterly Revenue Trend 2000 to 2002
2002 Preliminary Results Group Quarterly Revenue Trend 2000 to 2002 Revenue 70 69.6 66.9 63.6 64.4 62.9 60 58.7 55.4 51.4 £m 50 49.9 49.5 47.8 43.9 40 30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2000 2001 2002 previous page next page
Slide 28: Current Trading
2002 Preliminary Results Current Trading • Activity levels weakened in Q4 and continued to weaken in Q1. • Jan/Feb 2003 revenue approx 15% lower than Jan/Feb 2002. • Current pre bonus cost base approx £12.25m per month. previous page next page
Slide 29: Strategy and Prospects
2002 Preliminary Results Strategy and Prospects • Anticipate another challenging year. • Remain focused on core competency of specialist recruitment. • Grow organically when markets improve. • Close attention to costs. • Importance of management and brand through the cycle. • Focus on long-term pros
Slide 30: Michael Page
Michael Page INTERNATIONAL
Michael Page International — FY2002 Earnings Presentation on 6ix