PageGroup PLC · LSE:PAGE
PageGroup — Q2 2019 Earnings Presentation
25 slides from PageGroup's earnings presentation, Jul 10, 2019
Slide 1: Q2 2019 Trading Update: A record quarter for the Group
10 July 2019 Kelvin Stagg Chief Financial Officer Q2 2019 Trading Update “A record quarter for the Group” LSE: PAGE.L Website: https://www.page.com/investors
Slide 2: Headline Numbers
Headline Numbers Kelvin Stagg, Chief Financial Officer
Slide 3: A record quarter for the Group
Headline Numbers Financial Review Regional Review Summary Q2 19 A record quarter for the Group Key financial highlights Gross Profit Q2 £224.6m Growth in +7.4% Constant £208.2m Q2 2018 +11.7% Q1 2019 Currency Q2 Gross Profit £433.5m Reported +7.9% H1 Rates Q2 +11.2% Q1 2019 £396.0m H1 2018 Michael P
Slide 4: Financial Review
Financial Review
Slide 5: Strong growth in all brands
Headline Numbers Financial Review Regional Review Summary Q2 19 Strong growth in all brands Perm:Temp ratio down on prior year 15% 24% 42% +7.4% +6.2% +10.3% 58% 76% 85% Perm Temp Perm Temp Perm Temp • Gross Profit growth in • Gross Profit growth in • Gross Profit growth in permanent +5.1% to £171.5
Slide 6: Professional Services strongest performing
Headline Numbers Financial Review Regional Review Summary Q2 19 Professional Services strongest performing More challenging conditions in Marketing, Sales and Retail 16% Q2 2019 £m 2018 £m Reported % Constant % 35% Finance Accounting and Financial Gross Profit 78.1 72.1 +8.3% +8.0% Services 24% by D
Slide 7: Headcount: Focus on productivity and conversion
Headline Numbers Financial Review Regional Review Summary Q2 19 Focus on productivity and conversion Ratio of fee earners to support staff 78:22 Total headcount • Decrease in fee earners of 122 (-2.0%) -1.0% 8,000 • Fee earner headcount fell in markets where we saw more challenging conditions 7,000
Slide 8: Gross Profit (£m) as reported
Gross Profit (£m) as reported 50 0 100 200 250 150 Q1 49.5 Q2 51.4 Q3 47.8 Headline Numbers Q4 43.9 Q1 42.8 Q2 45.0 Q3 45.0 Q4 45.7 Q1 48.1 Q2 52.3 Q3 53.5 Q4 56.7 Q1 59.9 Q2 68.3 Q3 69.2 Q4 70.2 Q1 79.2 Q2 87.4 Q3 89.1 Q4 93.1 Q1 105.5 Q2 121.0 Q3 123.4 Q4 128.2 Q1 140.3 Q2 152.4 Q3 141.3 Fee Earne
Slide 9: Regional Review
Regional Review
Slide 10: Q2 growth rate of 7.4%
Headline Numbers Financial Review Regional Review Summary Q2 19 Q2 growth rate of 7.4% Large, High Potential markets* +14% • 16 countries achieved YoY growth of over 10% • 14 countries delivered record quarters • Americas continued to be fastest growing region 16% Q2 2019 £m 2018 £m Reported % Const
Slide 11: EMEA had another record quarter
Headline Numbers Financial Review Regional Review Summary Q2 19 EMEA had another record quarter Standout performance for Germany • Michael Page (55% of EMEA) +8%, Page Personnel (45%) +10% • France, representing 16% of the Group, +6% Other 14% • Germany +24%: Michael Page Interim +47% France 32% • B
Slide 12: Asia Pacific impacted by trade tariffs
Headline Numbers Financial Review Regional Review Summary Q2 19 Asia Pacific impacted by trade tariffs India and Japan standout performances • Greater China, 8% of the Group, -1% • South East Asia +8%; Singapore -3% Japan 15% • Continuing impact of trade tariff uncertainty, particularly amongst our
Slide 13: Americas continues to be fastest growing region
Headline Numbers Financial Review Regional Review Summary Q2 19 Americas continues to be fastest growing region Record quarters for the US and Latin America • US +22%, driven by strong performance in regional offices of Boston, Chicago, Houston and Los Angeles Rest of Latam 14% • Latin America +15%
Slide 14: UK remained challenging
Headline Numbers Financial Review Regional Review Summary Q2 19 UK remained challenging Good growth in Page Personnel • Brexit continued to weigh on market sentiment, particularly with senior candidates Midlands 16% • Page Personnel +8% • Michael Page -6% London 37% Gross Profit South by Geography 2
Slide 15: Summary
Summary
Slide 16: A record quarter for the Group
Headline Numbers Financial Review Regional Review Summary Q2 19 A record quarter for the Group Weaker macro-economic conditions in a number of our markets Group Gross Profit growth rate of +7.4% 16 countries delivered YoY growth of over 10% Fee Earner headcount reduced by 122 Business model enables
Slide 17: Appendix
Appendix
Slide 18: Our business model
Headline Numbers Financial Review Regional Review Summary Our business model Q2 19 18
Slide 19: A growing international business
Headline Numbers Financial Review Regional Review Summary A growing international business Q2 19 Delivering on our global diversification strategy Gross Profit 16% 24% 39% 61% 76% 84% FY 2007 FY 2013 Q2 2019 UK International 19
Slide 20: Significant variations in recruitment mix
Headline Numbers Financial Review Regional Review Summary Significant variations in recruitment mix Q2 19 Geography Brands 13% 11% 15% 30% 30% 42% 87% 89% 85% 70% 70% 58% EMEA Asia Pacific UK Americas Michael Page Page Personnel Temp Perm 20
Slide 21: Long term fee earner and international growth
Headline Numbers Financial Review Regional Review Summary Q2 19 Long term fee earner and international growth ASIA 7,000 EMEA AMERICAS UK PACIFIC 6,035 Fee Earner Headcount 6,000 5,000 4,000 3,000 EMEA 2,000 APAC 1,000 Americas UK - 1985-1990 1990-1999 2000 2001 1990-99 2000 2001 2002 2002 2003 2003
Slide 22: Fee earner investment and support staff
Headline Numbers Financial Review Regional Review Summary Fee earner investment and support staff Q2 19 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 H1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 23: Year-on-Year Gross Profit Rates
Headline Numbers Financial Review Regional Review Summary Year-on-Year Gross Profit Rates Q2 19 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 EMEA +14.8% +13.2% +12.6% +19.3% +18.2% +18.6% +20.9% +13.9% +11.4% +9.0% Asia Pacific +3.9% +6.8% +13.9% +14.9% +13.8% +18.4% +27.7% +22.0% +14.9% +4.7% – Asi
Slide 24: Contacts and Calendar
Headline Numbers Financial Review Regional Review Summary Contacts and Calendar Q2 19 Contacts Date Event Jeremy Tatham – Group Financial Controller 7 August 2019 HY 2019 Interim Results Tel: +44 (0) 1932 264 143 9 October 2019 Q3 2019 Trading Update Email: investorrelations@michaelpage.com Web: htt
Slide 25: Disclaimer
Headline Numbers Financial Review Regional Review Summary Disclaimer Q2 19 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