PageGroup PLC · LSE:PAGE
PageGroup — Q4 2015 Earnings Presentation
23 slides from PageGroup's earnings presentation, January 2016
Slide 1: Q4 2015 and Full Year Trading Update
Q4 2015 and Full Year Trading Update
Slide 2: Agenda
Agenda Financial Review Regional Review Summary and Outlook
Slide 3: Financial Review
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Slide 4: Trading Performance – Year-on-Year Gross Profit
Trading Performance – Year-on-Year Gross Profit Reported (£m) Constant 2015 2014 % % Q4 2015 vs Q4 2014 135.6 136.3 -0.5% +5.3% FY 2015 vs FY 2014 555.9 532.8 +4.3% +9.2% • Q4 Gross Profit +5.3% vs Q4 2014 in constant currency • In constant currency, Q4 Gross Profit was £143.4m, c. +£8m on reported
Slide 5: Permanent : Temporary – Year-on-Year Gross Profit
Permanent : Temporary – Year-on-Year Gross Profit Reported (£m) Constant Q4 2015 2014 % % Permanent 100.9 101.9 -1.0% +4.9% Temporary 34.7 34.4 +1.0% +6.2% Ratio (Perm : Temp) 74:26 75:25 • Proportion of perm in Q4 normally less than annual average due to availability of candidates and decision make
Slide 6: Quarter 4 Discipline Overview – Year-on-Year Gross Profit
Quarter 4 Discipline Overview – Year-on-Year Gross Profit Reported (£m) Constant % of Q4 2015 2014 % % Group Finance & Accounting 40% 53.8 54.2 -0.6% +5.0% Legal, Technology, HR, Secretarial 22% 30.4 27.0 +12.7% +18.7% and Healthcare Engineering, Property & Construction, Procurement & 19% 25.2 27.3
Slide 7: Headcount
Headcount Q4 2015 Q4 2014 Movement % Fee earners 4,484 4,278 206 4.8% Support staff 1,351 1,300 51 3.9% Total headcount 5,835 5,578 257 4.6% Ratio 77:23 77:23 • Fee earners added where growth strongest • Fee earner to operational support staff ratio remains at 77:23, a record for the Group • Majorit
Slide 8: Headcount and Reported Gross Profit - Quarterly
Headcount and Reported Gross Profit - Quarterly Total headcount increased 4.6% vs. Q4 2014 to 5,835 (Q4 2014: 5,578) 8
Slide 9: Headcount and Reported Gross Profit - Full Year
Headcount and Reported Gross Profit - Full Year Total headcount growth of 4.6% aligned to constant currency gross profit growth of 9.2% 9
Slide 10: Regional Review
Slide 11: Q4 Regional Overview – Year-on-Year Gross Profit
Q4 Regional Overview – Year-on-Year Gross Profit Reported Constant Reported FY 2014 FY 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q4 2015 EMEA +2.1% +8.6% +12.1% +11.4% +13.0% +10.3% +1.6% UK +11.5% +11.5% +11.3% +12.8% +12.5% +2.1% +2.1% Asia Pacific -0.3% +9.4% +10.8% +5.6% +5.3% -1.3% -5.5% Americas +0
Slide 12: Full Year Regional Overview – Year-on-Year Gross Profit
Full Year Regional Overview – Year-on-Year Gross Profit Reported (£m) Constant % of FY 2015 2014 % % Group EMEA 39% 216.8 212.0 +2.3% +11.8% UK 27% 151.6 138.4 +9.6% +9.6% Asia Pacific 20% 109.1 105.5 +3.4% +4.9% Americas 14% 78.4 76.9 +1.9% +7.3% Group Total 100% 555.9 532.8 +4.3% +9.2% 12
Slide 13: EMEA (41% of Group in Q4) – Year-on-Year Gross Profit
EMEA (41% of Group in Q4) – Year-on-Year Gross Profit Reported (£m) Constant 2015 2014 % % Q4 2015 vs Q4 2014 55.8 55.0 +1.6% +10.3% FY 2015 vs FY 2014 216.8 212.0 +2.3% +11.8% Headcount at 31 December 2015: 2,295 (31 December 2014: 2,113) • Michael Page (56% of EMEA) +8%, Page Personnel (44% of EME
Slide 14: United Kingdom (27% of Group in Q4) – Year-on-Year Gross Profit
United Kingdom (27% of Group in Q4) – Year-on-Year Gross Profit Reported (£m) 2015 2014 % Q4 2015 vs Q4 2014 36.2 35.5 +2.1% FY 2015 vs FY 2014 151.6 138.4 +9.6% Headcount at 31 December 2015: 1,516 (31 December 2014: 1,441) • Michael Page (78% of the UK) +1% • Page Personnel (22% of the UK) +10% •
Slide 15: Asia Pacific (18% of Group in Q4) – Year-on-Year Gross Profit
Asia Pacific (18% of Group in Q4) – Year-on-Year Gross Profit Reported (£m) Constant 2015 2014 % % Q4 2015 vs Q4 2014 24.8 26.2 -5.5% -1.3% FY 2015 vs FY 2014 109.1 105.5 +3.4% +4.9% Headcount at 31 December 2015: 1,180 (31 December 2014: 1,141) • Asia (13% of Group and 74% of Asia Pacific) +2% • Gr
Slide 16: Americas (14% of Group in Q4) – Year-on-Year Gross Profit
Americas (14% of Group in Q4) – Year-on-Year Gross Profit Reported (£m) Constant 2015 2014 % % Q4 2015 vs Q4 2014 18.8 19.6 -4.1% +5.4% FY 2015 vs FY 2014 78.4 76.9 +1.9% +7.3% Headcount at 31 December 2015: 844 (31 December 2014: 883) • North America (8% of the Group and 59% of Americas) +23% • US
Slide 17: Summary & Outlook
Summary & Outlook
Slide 18: Summary
Summary • Q4 Gross Profit: +5.3% in constant currency and -0.5% in reported rates - Strong performances from Europe, US and majority of Latin America Summary - Weaker performances from Brazil, Australia, Greater China and UK • Foreign exchange reduced Gross Profit by 5.8 percentage points or c. £8m
Slide 19: Outlook
Outlook • Short-term trading conditions remain challenging and unpredictable Summary Outlook - Brazil and Middle East likely to remain challenging - UK Q4 growth rate of concern, although activity levels consistent with Q1-Q3, 2015. Hopefully clients in New Year will be more decisive - Asia difficul
Slide 20: Key Dates
Key Dates • Full Year Results – 10 March Summary • Q1 Interim Management Statement – 12 April • Q2 Trading Update – 12 July • Interim Results – 11 August • Q3 Interim Management Statement – 11 October • Q4 2016 Trading Update – 10 January 2017 20
Slide 21: Cautionary Statement
21 Cautionary Statement 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
Slide 22: Page
Page Michael Page Page Personnel Part of PageGroup
Slide 23: Year-on-Year Gross Profit Growth Rates
Year-on-Year Gross Profit Growth Rates 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EMEA -15.0% -8.2% -7.1% -1.4% +5.7% +5.1% +11.2% +12.5% +12.1% +11.4% +13.0% +10.3% UK -1.2% +0.3% +5.0% +5.1% +8.1% +11.1% +13.7% +11.0% +11.3% +12.8% +12.5% +2.1% Asia Pacific -0.3% -8.0% -4.3% -5.7% +1.3% +1