Pagegroup Plc · LSE:PAGE
Pagegroup — Q2 2023 Earnings Presentation
25 slides from Pagegroup's earnings presentation, Jul 12, 2023
Slide 1: Q2 and H1 2023 Trading Update
Overview Financial Review Regional Review Summary Q2 and H1 2023 Trading Update
Slide 2: Headline Numbers
Overview Financial Review Regional Review Summary Headline Numbers Kelvin Stagg Chief Financial Officer
Slide 3: Key financial highlights
Overview Financial Review Regional Review Summary Key financial highlights Robust results against a record comparator Gross Profit Q2 £263.5m Constant -6.5% Currency vs £280.9m Q2 2022 Q2 2022 Gross Profit H1 £526.5m Constant Currency vs -4.5% £538.9m H1 2022 H1 2022 +26% Total Fee Earner 6,385 +26%
Slide 4: Financial Review
Overview Financial Review Regional Review Summary Financial Review
Slide 5: Q2 Perm and Temp Ratio
Overview Financial Review Regional Review Summary Q2 Perm and Temp Ratio Continued stronger growth in temporary recruitment 17% 26% 48% -6.5% -8.0% -2.3% 52% 74% 83% Perm Temp Perm Temp Perm Temp • Permanent -11.4% to £195.5m • Permanent -10.6% to £158.2m • Permanent -14.6% to £37.3m • Temporary +11
Slide 6: Reduction in fee earners of 3.8%
Overview Financial Review Regional Review Summary Reduction in fee earners of 3.8% Reflecting continued challenging conditions Total headcount –2.6% • Decrease in fee earners of 255 (-3.8%) in the Quarter 10,000 9,000 • Q2 Fee earners: -79 EMEA, -84 Americas, -57 Asia 8,000 Pacific, -35 UK 7,000 • N
Slide 7: Productivity down 4% on Q2 2022
Overview Financial Review Regional Review Summary Productivity down 4% on Q2 2022 Up 6% sequentially on Q1 2023 • Activity levels remain strong 60 Fee Earners Gross Profit per fee earner (£k) constant 7000 • Continued high fee rates 50 6000 40 5000 currency • Wage inflation noted across most markets
Slide 8: Regional Review
Overview Financial Review Regional Review Summary Regional Review
Slide 9: Q2 Gross Profit -6.5%
Overview Financial Review Regional Review Summary Q2 Gross Profit -6.5% Against a record comparator in Q2 2022 • Strongest performance in EMEA, standout result in Germany • Tough market conditions continued in Asia, the UK and the US Q2 % of Group 2023 £m 2022 £m Reported % Constant % EMEA 54% 142.3
Slide 10: EMEA
Overview Financial Review Regional Review Summary EMEA Strong results against a tough comparator £m 2023 2022 Reported % Constant % Q2 142.3 137.1 +3.9% +1.4% H1 288.0 266.7 +8.0% +4.1% Other 13% France • Michael Page -1% 26% Benelux • Page Personnel +4% 15% Gross Profit • France (14% of the Group)
Slide 11: The Americas
Overview Financial Review Regional Review Summary The Americas Continued market uncertainty impacting results £m 2023 2022 Reported % Constant % Q2 46.3 51.2 -9.6% -8.8% H1 89.1 94.2 -5.5% -8.2% Rest of Latam Canada • US (9% of the Group) -16% 15% 4% • Latin America (8% of the Group) +3% • Mexico -7
Slide 12: Asia Pacific
Overview Financial Review Regional Review Summary Asia Pacific Continued challenging conditions across the region £m 2023 2022 Reported % Constant % Q2 42.4 53.5 -20.7% -17.2% H1 83.5 102.0 -18.2% -17.2% SE Asia 22% • Greater China (5% of the Group) -32% Japan & India • Mainland China -37% 27% • Hon
Slide 13: UK
Overview Financial Review Regional Review Summary UK Temporary recruitment more resilient than permanent £m 2023 2022 Reported % Q2 32.5 39.1 -17.0% H1 65.9 76.0 -13.2% Midlands 13% • Michael Page -19% London • Page Personnel -12% 38% South Gross Profit • Temporary recruitment +6% more resilient tha
Slide 14: Summary
Overview Financial Review Regional Review Summary Summary
Slide 15: Summary
Overview Financial Review Regional Review Summary Summary Full year outlook in line with consensus Strong results in our largest region EMEA, against a tough comparator Tough conditions continued in Asia, the UK and the US Fee earner headcount reduction of 255 (3.8%) in Q2, productivity down 4% Rema
Slide 16: Appendix
Overview Financial Review Regional Review Summary Appendix
Slide 17: Our business model
Overview Financial Review Regional Review Summary Our business model 17
Slide 18: A growing international business
Overview Financial Review Regional Review Summary A growing international business Delivering on our global diversification strategy Gross Profit 10% 17% 15% 17% 38% Large, High 30% Potential Markets Large Established Markets Small and 45% Medium, High 73% 55% Margin Markets FY 2007 FY 2013 Q2 2023
Slide 19: Significant variations in recruitment mix
Overview Financial Review Regional Review Summary Significant variations in recruitment mix Geography Brands 13% 14% 17% 32% 30% 48% 87% 86% 83% 68% 70% 52% EMEA Americas Asia Pacific UK Michael Page Page Personnel Temp Perm 19
Slide 20: Long term fee earner & international growth
Overview Financial Review Regional Review Summary 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 201
Slide 21: Quarterly gross profit & fee earners
Overview Financial Review Regional Review Summary 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
Slide 22: Year-on-Year gross profit growth rates
Overview Financial Review Regional Review Summary 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% +1.4 Asia Pacific +15.3% +89.7% +68.2% +48.7% +35.8% +11.7% -3.9% -15.8% -17.0% -17.2% – Asia +22.2%
Slide 23: Contacts and Calendar
Overview Financial Review Regional Review Summary Contacts and Calendar Contacts Date Event Julia Dickson – Group Financial Controller 7 August 2023 Interim Results 2023 Tel: +44 (0) 1932 264 032 Email: investorrelations@michaelpage.com Web: https://www.page.com/investors 23
Slide 24: Disclaimer
Overview Financial Review Regional Review Summary 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
Slide 25: Overview Financial Review Regional Review
Overview Financial Review Regional Review Summary 25