Pagegroup Plc · LSE:PAGE
Pagegroup — FY2023 Earnings Presentation
23 slides from Pagegroup's earnings presentation, March 2024
Slide 1: Full Year Results 2023
Overview Financial Review Summary Full Year Results 2023
Slide 2: Headline Numbers
Overview Financial Review Summary Headline Numbers Kelvin Stagg Chief Financial Officer
Slide 3: Resilient performance in tough conditions
Overview Financial Review Summary Resilient performance in tough conditions Key financial highlights Gross Profit £1,007.1m Operating Profit £118.8m £1,076.3m FY 2022 £196.1m FY 2022 Constant Currency vs 2022 -6.3% Conversion 11.8% Rate 18.2% FY 2022 +26% +26% Basic EPS 24.4p Final Dividend Per 11.2
Slide 4: Financial Review
Overview Financial Review Summary Financial Review
Slide 5: Productivity remained at record levels
Overview Financial Review Summary Productivity remained at record levels Proactive reduction in headcount 7000 300 6000 250 5000 Gross Profit (£m) as reported 200 4000 Fee Earners 150 3000 100 2000 50 1000 0 0 Q2 Q1 Q3 Q2 Q4 Q3 Q1 Q4 Q2 Q1 Q3 Q2 Q4 Q3 Q1 Q4 Q2 Q1 Q2 Q3 Q4 Q1 Q1 Q3 Q4 Q2 Q4 Q1 Q3 Q1
Slide 6: Group Operating Profit of £118.8m
Overview Financial Review Summary Group Operating Profit of £118.8m Conversion Rate of 11.8% FY 2023 FY 2022 GP Growth Operating Conversion Operating Conversion £m Gross Profit Gross Profit Rate (CC %) Profit Rate* Profit Rate* Group 1,007.1 -6.3% 118.8 11.8% 1,076.3 196.1 18.2% EMEA 549.5 +0.3% 92.
Slide 7: Technology now represents 14% of Group
Overview Financial Review Summary Technology now represents 14% of Group Tough conditions in all disciplines FY Gross Profit 2023 £m 2022 £m Reported % Constant % 13% Finance Accounting and 332.3 343.7 -3.3% -3.2% 33% Financial Services 14% Technical Engineering, Property & Construction, 242.9 251.7
Slide 8: Strategic review of cost base
Overview Financial Review Summary Strategic review of cost base Net impact of c. £2m on FY23 Number of initiatives actioned to reduce our cost base Gross one off cost in FY23 of c. £11m, partially offset by cost savings of c. £9m Net impact of c. £2m in FY23 Annualised savings of c. £20m in FY24 Wag
Slide 9: Effective Tax Rate (ETR)
Overview Financial Review Summary Effective Tax Rate (ETR) Effective tax rate increased to 34% in 2023 Reported vs. £m 2023 2022 2022 % Profit Before Tax 117.4 194.4 -39.6% Tax Charge 40.4 55.4 -27.1% Effective Tax Rate 34.4% 28.5% • UK tax rate increased from 19% in 2022 to 23.5% in 2023 • Mix of p
Slide 10: A strong and robust balance sheet
Overview Financial Review Summary A strong and robust balance sheet Net cash of £90.1m £m 2023 2022 Intangible assets 32.1 40.0 Tangible assets 47.5 36.1 Lease assets 98.4 101.0 Trade and other receivables 393.3 450.5 Trade, other payables, current and deferred taxes (243.9) (297.1) Lease Liabilitie
Slide 11: Strong cash flow generation
Overview Financial Review Summary Strong cash flow generation Substantial EBITDA enabled dividend payments of £100.1m 370 330 20.0 57.8 290 30.8 250 191.9 40.0 £m 210 17.5 323.4 170 285.6 254.8 100.1 130 214.8 197.3 1.9 9.0 90 131.5 131.5 97.2 97.2 90.1 90.1 50 Dec 22 EBITDA Working Tax and Net cape
Slide 12: Clear capital allocation strategy
Overview Financial Review Summary Clear capital allocation strategy £100.1m returned to Shareholders in 2023 1st use of cash 2nd use of cash 3rd use of cash To satisfy operational To maintain the and investment ordinary dividend To make requirements, and to through downturns supplementary returns he
Slide 13: Continued high Shareholder returns
Overview Financial Review Summary Continued high Shareholder returns Committed to returning cash to shareholders 140 120 100 85 80 50 £m 41 41 60 83 50 40 85 60 30 20 40 16 34 15 24 48 50 20 14 41 43 35 36 38 29 31 31 33 27 26 25 18 22 13 12 13 14 15 0 1 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 14: Summary
Overview Financial Review Summary Summary
Slide 15: Summary
Overview Financial Review Summary Summary Resilient performance in tough conditions Conversion of activity levels into gross profit became increasingly challenging Gross Profit in constant currencies -6.3% vs 2022 Operating Profit of £118.8m Conversion Rate of 11.8% January and February continued to
Slide 16: Appendix
Overview Financial Review Summary Appendix
Slide 17: Our business model
Overview Financial Review Summary Our business model 17
Slide 18: Significant variations in recruitment mix
Overview Financial Review Summary Significant variations in recruitment mix Geography Brands 16% 15% 18% 33% 31% 50% 67% 84% 85% 69% 82% 50% EMEA Americas Asia Pacific UK Michael Page Page Personnel Temp Perm 18
Slide 19: Long term fee earner & international growth
Overview Financial 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 2,959 2,000 1,194 1,000 946 752 - 1985-1990 1990-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 20: Year-on-Year gross profit growth rates
Overview Financial Review Summary Year-on-Year gross profit growth rates 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EMEA +3.6% +75.8% +45.8% +48.0% +41.1% +29.4% +22.1% +11.9% +6.8% +1.4% -1.3% -6.1% Asia Pacific +15.3% +89.7% +68.2% +48.7% +35.8% +11.7% -3.9% -15.8% -17.0% -17.2% -11.0% -10
Slide 21: Contacts and Calendar
Overview Financial Review Summary Contacts and Calendar Contacts Date Event Matt Clark – Group Financial Controller 15 April 2024 Q1 2024 Trading Update Tel: +44 (0) 1932 264 022 Email: investorrelations@michaelpage.com Web: https://www.page.com/investors 21
Slide 22: Disclaimer
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 and is not intended for distribution to, or use by
Slide 23: Overview Financial Review Summary
Overview Financial Review Summary 23