PageGroup PLC · LSE:PAGE
PageGroup — Q4 2019 Earnings Presentation
26 slides from PageGroup's earnings presentation, Jan 14, 2020
Slide 1: Q4 2019 and FY19 Trading Update
14 January 2020 Steve Ingham Chief Executive Officer Q4 2019 and FY19 Trading Update Kelvin Stagg Chief Financial Officer LSE: PAGE.L Website: https://www.page.com/investors
Slide 2: Headline Numbers
Headline Numbers Kelvin Stagg, Chief Financial Officer
Slide 3: Slowdown in growth rate to -0.4%
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Slowdown in growth rate to -0.4% Key financial highlights Gross Profit £205.6m Growth in -0.4% Q4 Constant £211.0m Q4 2018 +5.0% FY 2019 Currency Q4 Gross Profit £856.0m Reported -2.6% FY Rates Q4 +5.0% FY 2019 £814.9m FY 2018
Slide 4: Financial Review
Financial Review
Slide 5: Perm and Temp ratio
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Perm and Temp ratio Stronger growth of Temporary in both brands 18% 26% 46% 54% 74% 82% Perm Temp Perm Temp Perm Temp • Gross Profit decline in • Gross Profit decline in • Gross Profit decline in permanent -3.0% to £151.3m per
Slide 6: Challenging conditions for all disciplines
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Challenging conditions for all disciplines Marketing, Sales and Retail strongest performing discipline 17% Q4 2019 £m 2018 £m Reported % Constant % 35% Finance Accounting and Financial Gross Profit 72.5 74.5 -2.7% -0.4% Servic
Slide 7: Headcount
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Fee earner headcount reduced by 54 Ratio of fee earners to operational support staff maintained at 78:22 Total headcount • Decrease in fee earners of 54 (-0.9%) -1.2% 8,000 • Fee earner headcount reduced mainly in Greater Chin
Slide 8: Fee Earners Gross Profit (£m) as reported
Gross Profit (£m) as reported 50 0 100 150 200 250 Q1 49.5 Q2 51.4 Q3 47.8 Headline Numbers Q4 43.9 Q1 42.8 Q2 45.0 Q3 45.0 Q4 45.7 Q1 48.1 Q2 52.3 Q3 53.5 Q4 56.7 Q1 59.9 Q2 68.3 Q3 69.2 Q4 70.2 Q1 79.2 Q2 87.4 Q3 89.1 Q4 93.1 Q1 105.5 Q2 121.0 Q3 123.4 Q4 128.2 Q1 140.3 Q2 152.4 Q3 141.3 Q4 118.7
Slide 9: Regional Review
Regional Review Steve Ingham, Chief Executive Officer
Slide 10: Group growth rate declined to -0.4%
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Group growth rate declined to -0.4% Regions were impacted by macro-economic and political uncertainty in Q4 • Large, High Potential markets* (34% of Group) +4% • Macro-economic and political uncertainty in EMEA • APAC impacted
Slide 11: EMEA growth continued to slow
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 EMEA growth continued to slow Macro-economic uncertainty continued to impact market confidence • Michael Page (55% of EMEA) +4%, Page Personnel (45%) flat • France, representing 17% of the Group, +1% Other 13% • Germany +16%,
Slide 12: Asia Pacific impacted by uncertainty
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Asia Pacific impacted by uncertainty Social unrest in Hong Kong throughout quarter • Greater China, -14%, Mainland China -7%, Hong Kong -27% • South East Asia -4% Japan & India • Japan -1% 22% Greater • India +13%, against a p
Slide 13: Americas again our fastest growing region
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Americas again our fastest growing region Despite weaker Financial Services market in New York • US +10%, driven by strong performances from Boston, Chicago Canada and Los Angeles 3% Rest of Latam • Slowdown in New York Financ
Slide 14: UK impacted by uncertainty
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 UK impacted by uncertainty Disruption from Brexit increased uncertainty • Page Personnel suffered from low client confidence, -4% Midlands • Michael Page continued to be impacted by lower senior 17% candidate confidence, -5% L
Slide 15: Summary & Outlook
Summary & Outlook
Slide 16: Summary
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Summary Slowdown in growth in all regions Increased macro-economic and political uncertainty Decrease in Group Gross Profit growth rate to -0.4% Fee Earners down by 54, Operational Support down by 37 Strong net cash position o
Slide 17: Outlook
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Outlook Challenging trading conditions and foreign exchange headwinds Tough trading conditions experienced across the majority of our regions are anticipated to continue Likely that foreign exchange headwinds will persist Busi
Slide 18: Appendix
Appendix
Slide 19: Our business model
Headline Numbers Financial Review Regional Review Summary & Outlook Our business model Q4 19 19
Slide 20: A growing international business
Headline Numbers Financial Review Regional Review Summary & Outlook A growing international business Q4 19 Delivering on our global diversification strategy Gross Profit 16% 24% 39% 61% 76% 84% FY 2007 FY 2013 Q4 2019 UK International 20
Slide 21: Significant variations in recruitment mix
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Significant variations in recruitment mix Geography Brands 14% 13% 18% 33% 33% 46% 86% 87% 82% 67% 67% 54% EMEA Asia Pacific Americas UK Michael Page Page Personnel Temp Perm 21
Slide 22: Long term fee earner and international growth
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Long term fee earner and international growth 7,000 ASIA EMEA AMERICAS UK PACIFIC Fee Earner Headcount 6,000 5,000 4,000 3,000 2,610 2,000 1,352 1,000 1,147 918 - 1990-99 2000 1985-1990 1990-1999 2000 2001 2001 2002 2002 2003
Slide 23: Fee earner investment and support staff headcount
Headline Numbers Financial Review Regional Review Summary & Outlook Fee earner investment and support staff Q4 19 7000 6000 5000 Headcount 4000 3000 2000 1000 0 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 2003 2004 2005 2006 2007 2008 2009 20
Slide 24: Year-on-Year Gross Profit Rates
Headline Numbers Financial Review Regional Review Summary & Outlook Year-on-Year Gross Profit Rates Q4 19 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EMEA +14.8% +13.2% +12.6% +19.3% +18.2% +18.6% +20.9% +13.9% +11.4% +9.0% +5.6% +2.3% Asia Pacific +3.9% +6.8% +13.9% +14.9% +13.8% +18.4% +27.
Slide 25: Contacts and Calendar
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 Contacts and Calendar Contacts Date Event Jeremy Tatham – Group Financial Controller 5 March 2020 FY 2019 Results Tel: +44 (0) 1932 264 143 15 April 2020 Q1 2020 Trading Update Email: investorrelations@michaelpage.com Web: htt
Slide 26: Disclaimer
Headline Numbers Financial Review Regional Review Summary & Outlook Q4 19 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 info