Pagegroup Plc · LSE:PAGE
Pagegroup — Q1 2024 Earnings Presentation
24 slides from Pagegroup's earnings presentation, Apr 15, 2024
Slide 1: Q1 Trading Update 2024
Overview Financial Review Regional Review Summary Q1 Trading Update 2024
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 Challenging conditions continued in Q1 2024 Constant Currency vs -12.8% Gross Profit £219.7m Q1 2023 -16.4% £263.0m Q1 2023 Reported vs Q1 2023 +26% 5,751 +26% Total Fee Earner 5,851 Q4 2023 Gross profit per fee +1% Headcount
Slide 4: Financial Review
Overview Financial Review Regional Review Summary Financial Review
Slide 5: Q1 Perm and Temp Ratio
Overview Financial Review Regional Review Summary Q1 Perm and Temp Ratio Temporary recruitment more resilient than permanent 18% 27% 48% 52% -12.8% -10.6% -18.4% 73% 82% Perm Temp Perm Temp Perm Temp • Permanent -14.9% to £159.7m • Permanent -10.8% to £131.3m • Permanent -30.3% to £28.4m • Temporary
Slide 6: Headcount
Overview Financial Review Regional Review Summary Decrease in fee earner headcount of 100 Reflecting continued challenging conditions Total headcount -1.0% 9,000 • Decrease in fee earners of 100 (1.7%) in the Quarter 8,000 • Q1 fee earner movement: -46 EMEA, +37 Americas, -65 7,000 Asia Pacific, -26
Slide 7: Productivity up 1% on Q1 2023
Overview Financial Review Regional Review Summary Productivity up 1% on Q1 2023 Attrition used to manage down fee earner headcount • Q1 2024 exit impacted by reduced number of working 60 Fee Earners Gross Profit per fee earner (£k) constant days in March, due to bank holidays and timing of Easter 70
Slide 8: Regional Review
Overview Financial Review Regional Review Summary Regional Review
Slide 9: Q1 Gross Profit -12.8%
Overview Financial Review Regional Review Summary Q1 Gross Profit -12.8% Negative foreign exchange impact of 3.6 ppts • Tough trading conditions continued in all markets • Slowdown experienced in Continental Europe in Q4 2023 continued into Q1 Q1 % of Group 2024 £m 2023 £m Reported % Constant % EMEA
Slide 10: EMEA
Overview Financial Review Regional Review Summary EMEA Tougher conditions seen in 2023 continued into Q1 2024 Q1 2024 £m 2023 £m Reported % Constant % Gross Profit 123.3 145.7 -15.4% -12.7% Other • Temporary recruitment -9% vs permanent -15% 13% France 25% • France (14% of the Group) -16% Benelux •
Slide 11: The Americas
Overview Financial Review Regional Review Summary The Americas Continued tough market conditions in the US Q1 2024 £m 2023 £m Reported % Constant % Gross Profit 37.3 42.7 -12.6% -5.5% Rest of Latam • US (9% of the Group) -15% 16% Canada 3% • Latin America (8% of the Group) -4%* • Mexico -12% Brazil
Slide 12: Asia Pacific
Overview Financial Review Regional Review Summary Asia Pacific No recovery seen in Greater China Q1 2024 £m 2023 £m Reported % Constant % Gross Profit 32.0 41.1 -22.0% -15.7% • Greater China (4% of the Group) -15% SE Asia • Mainland China -19% 24% Japan & • Hong Kong -12% India 30% • South East Asia
Slide 13: UK: Temporary recruitment more resilient than permanent
Overview Financial Review Regional Review Summary UK Temporary recruitment more resilient than permanent Q1 2024 £m 2023 £m Reported % Gross Profit 27.1 33.5 -19.2% • Michael Page -20% Temp 31% • Page Personnel -17% • Permanent -22% Gross Profit • Temporary -12% Perm vs. Temp Perm 69% No. 2024 Q1 20
Slide 14: Summary
Overview Financial Review Regional Review Summary Summary
Slide 15: Summary
Overview Financial Review Regional Review Summary Summary Challenging conditions continued in Q1 2024 Tough conditions at end of Q4 continued into Q1 across all regions Slower end to the Quarter, exited in March at -18% vs. 2023 Temporary recruitment continued to outperform permanent Fee earner head
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: Significant variations in recruitment mix
Overview Financial Review Regional Review Summary Significant variations in recruitment mix Geography Brands 18% 14% 18% 33% 31% 52% 86% 82% 82% 67% 69% 48% EMEA Americas Asia Pacific UK Michael Page Page Personnel Temp Perm 18
Slide 19: 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 2,913 2,000 1,129 1,000 983 726 - 1990-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 20: Quarterly gross profit & fee earners
Overview Financial Review Regional Review Summary Quarterly gross profit & fee earners Quarterly gross profit reduced from Q1 2022 7000 300 6000 250 5000 Gross Profit (£m) as reported 200 4000 Fee Earners 150 3000 100 2000 50 1000 0 0 Q1 Q4 Q1 Q4 Q1 Q2 Q1 Q2 Q1 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q4 Q2 Q3 Q1 Q2 Q3
Slide 21: Year-on-Year gross profit growth rates
Overview Financial Review Regional Review Summary Year-on-Year gross profit growth rates 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 EMEA +41.1% +29.4% +22.1% +11.9% +6.8% +1.4% -1.3% -6.1% -12.7% Asia Pacific +35.8% +11.7% -3.9% -15.8% -17.0% -17.2% -11.0% -10.3% -15.7% – Asia +39.9% +8.8% -6.4% -19.
Slide 22: Contacts and Calendar
Overview Financial Review Regional Review Summary Contacts and Calendar Contacts Date Event Matt Clark – Group Financial Controller 10 July 2024 Q2 2024 Trading Update Tel: +44 (0) 1932 264 022 Email: investorrelations@michaelpage.com Web: https://www.page.com/investors 22
Slide 23: 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 24: Overview Financial Review Regional Review
Overview Financial Review Regional Review Summary 24