PageGroup PLC · LSE:PAGE
PageGroup — Michael Page International — H1 2003 Earnings Presentation
23 slides from PageGroup's earnings presentation, 2003
Slide 1: 2003 Interim Results
Michael Page International 2003 Interim Results click to enter
Slide 2: Overview
2003 Interim Results Overview • Challenging first half - weak economies, Iraq war, SARS • Remain focused on core competency of specialist recruitment and maintaining market presence • Close attention to costs • Stronger end to second quarter than anticipated produced results ahead of expectations •
Slide 3: Group Profit and Loss
2003 Interim Results Group Profit and Loss 2003 Change 2002 £m % £m Turnover 180.4 -8.8% 197.8 Revenue 87.8 -13.0% 100.9 Operating profit 10.6 -40.4% 17.8 Net exceptional items 0.5 - Net interest 0.4 0.1 Profit before tax 11.6 -35.6% 18.0 Taxation (4.4) (6.1) Profit after tax 7.2 11.8 previous page
Slide 4: Exceptional Items
2003 Interim Results Exceptional Items Vacant property charge - £(3.0)m • Victoria House - London Reduced payroll tax liability on RSS - £3.5m • Based on share price of 110.5p at 30 June 2003 • Liability crystallises in March 2004 • Final amount dependent upon share price, residency and rates of soc
Slide 5: Taxation
2003 Interim Results Taxation 2003 effective rate is 38% • Unrelieved tax losses in overseas jurisdictions UK Corporation Tax re Restricted shares • New legislation should allow deduction in 2004 • Only for UK participants of Restricted Share Scheme • Using share price at 30 June 2003, deduction to
Slide 6: Earnings per Share and Dividends
2003 Interim Results Earnings per Share and Dividends Earnings per share 2003 2002 Basic 2.0p 3.2p Before exceptional 1.9p 3.2p Dividend Interim 1.1p 1.1p Payable on 17 October 2003 previous page next page
Slide 7: Cash Flow
2003 Interim Results Cash Flow 2003 2002 £m £m Operating profit 11.1 17.8 Depreciation and amortisation 3.5 3.9 Increase in debtors (4.1) (3.5) Decrease in creditors (2.8) (0.7) Net cash inflow from operating activities 7.7 17.5 Net interest received 0.4 0.1 Taxation paid (4.7) (8.4) Net capital exp
Slide 8: Balance Sheet
2003 Interim Results Balance Sheet 30 June 31 Dec 2003 2002 £m £m Goodwill 1.6 1.6 Tangible assets 24.5 23.5 Investment in own shares 10.0 10.0 Total Fixed Assets 36.1 35.1 Debtors 75.2 70.7 Creditors (55.0) (62.4) 20.2 8.3 Net cash 13.6 21.4 Provisions (5.5) (6.0) Net assets 64.5 58.9 previous page
Slide 9: Discipline Analysis
2003 Interim Results Discipline Analysis 2003 2002 2002 H1 H1 Year Turnover £m % £m % £m % Finance & Accounting 125.1 69.3% 144.3 72.9% 277.8 72.4% Marketing & Sales 29.7 16.5% 28.2 14.3% 54.6 14.2% Other 25.6 14.2% 25.3 12.8% 51.1 13.2% 180.4 197.8 383.5 Revenue Finance & Accounting 55.8 63.6% 66.1
Slide 10: Perm/Temp Analysis
2003 Interim Results Perm/Temp Analysis 2003 2002 2002 H1 H1 Year Turnover £m % £m % £m % Permanent 63.7 35.3% 76.3 38.6% 141.2 36.8% Temporary 116.7 64.7% 121.5 61.4% 242.3 63.2% 180.4 197.8 383.5 Revenue Permanent 60.1 68.4% 71.0 70.4% 133.0 69.1% Temporary 27.7 31.6% 29.9 29.6% 59.6 30.9% 87.8 10
Slide 11: Geographical Analysis of Revenue
2003 Interim Results Geographical Analysis of Revenue 2003 2002 2002 H1 H1 Year £m % £m % £m % United Kingdom 43.7 49.8% 51.9 51.5% 99.3 51.5% Continental Europe 30.6 34.9% 35.2 34.9% 66.3 34.4% Asia Pacific 11.5 13.1% 11.3 11.2% 22.9 11.9% Americas 1.9 2.2% 2.5 2.4% 4.1 2.1% 87.8 100.0% 100.9 100.0
Slide 12: United Kingdom
2003 Interim Results United Kingdom 2003 2002 H1 on H1 2002 H1 H1 change Year £m £m % £m Turnover 92.1 105.8 -13.0% 203.9 Revenue 43.7 51.9 -15.8% 99.3 Operating profit 6.7 10.3 -34.8% 20.5 Operating margin 15.4% 19.9% 20.6% Headcount at period end 1,069 1,154 1,116 previous page next page
Slide 13: United Kingdom
2003 Interim Results United Kingdom Finance and accounting • Revenue 19% lower • Lower activity in senior positions • Banking and financial services remains weak Marketing and Sales • Revenue 14% lower Other • Strong revenue growth in HR and Engineering previous page next page
Slide 14: Continental Europe
2003 Interim Results Continental Europe 2003 2002 H1 on H1 2002 H1 H1 change Year £m £m % £m Turnover 62.1 66.3 -6.4% 127.6 Revenue 30.6 35.2 -12.9% 66.3 Operating profit 0.9 4.4 -78.4% 5.6 Operating margin 3.1% 12.4% 8.5% Headcount at period end 855 943 928 previous page next page
Slide 15: Continental Europe
2003 Interim Results Continental Europe • Extremely difficult market conditions in France, Holland and Germany • Italy, Spain, Switzerland, Portugal - operating at similar level to 2002 • Start up losses in Belgium and Sweden previous page next page
Slide 16: Asia Pacific
2003 Interim Results Asia Pacific 2003 2002 H1 on H1 2002 H1 H1 change Year £m £m % £m Turnover 23.7 22.6 4.6% 46.7 Revenue 11.5 11.3 2.0% 22.9 Operating profit 3.2 3.5 -8.3% 6.8 Operating margin 27.6% 30.7% 29.8% Headcount at period end 283 282 283 previous page next page
Slide 17: Asia Pacific
2003 Interim Results Asia Pacific • Strongest performing region • Australian operations continue to develop and gain share of tough market • Hong Kong and Singapore - weakness in banking, telecoms and technology sectors - SARS impact less than feared • Tokyo office progressing well previous page nex
Slide 18: Americas
2003 Interim Results Americas 2003 2002 H1 on H1 2002 H1 H1 change Year £m £m % £m Turnover 2.6 3.1 -15.1% 5.4 Revenue 1.9 2.5 -22.8% 4.1 Operating profit (0.2) (0.3) (0.7) Operating margin -12.1% -14.0% -18.1% Headcount at period end 72 61 63 previous page next page
Slide 19: Americas
2003 Interim Results Americas USA • Market conditions remain difficult • Third East Coast office planned for second half of 2003 Brazil • Sao Paulo office continues to grow • Second office opened in Rio de Janeiro previous page next page
Slide 20: Group Quarterly Revenue Trend
2003 Interim Results Group Quarterly Revenue Trend 80 70 69.6 66.9 63.6 64.4 62.9 £m 60 58.7 55.4 49.9 49.5 51.4 50 47.8 45.0 43.9 42.8 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2000 2001 2002 2003 previous page next page
Slide 21: Global Job Count
2003 Interim Results Global Job Count - www.michaelpage.co.uk 23,000 21,000 19,000 17,000 15,000 13,000 01 1 01 01 02 02 02 2 02 02 03 03 03 3 l0 l0 l0 ay p v n ar ay p v n ar ay Ju Ju Ju No No Ja Ja Se Se M M M M M previous page next page
Slide 22: Current Trading
2003 Interim Results Current Trading • Market conditions remain challenging, particularly in Continental Europe • Encouraged by increased Q2 revenue but now entering seasonally quieter Q3 • Remain cautious about short term outlook • Pre bonus cost base approx. £12.25m per month previous page next pa
Slide 23: Michael Page
Michael Page INTERNATIONAL
Michael Page International — H1 2003 Earnings Presentation on 6ix