PageGroup PLC · LSE:PAGE
PageGroup — Michael Page International — FY2003 Earnings Presentation
25 slides from PageGroup's earnings presentation, Feb 25, 2004
Slide 1: 2003 Preliminary Results
2003 PRELIMINARY RESULTS 25 February 2004
Slide 2: Overview
25 February 2004 2003 Preliminary Results Overview • 2003 another challenging year but ended positively • 4th Quarter 2003 revenue £45.7m • Clear evidence of increased activity in the UK • Trading conditions in Continental Europe remain weak • Outlook in Asia Pacific and Americas markets beginning t
Slide 3: Agenda
25 February 2004 2003 Preliminary Results Agenda • • Financial Results and segmental analysis Geographical Review • Current trading and strategy www.michaelpage.co.uk michael page international
Slide 4: Profit and loss
25 February 2004 2003 Preliminary Results Profit and 2003 Change £m % 2002 £m loss Turnover 372.6 -2.8% 383.5 Revenue 178.5 -7.4% 192.6 (before exceptional Operating profit 22.9 -28.8% 32.1 items) Net interest 0.6 0.5 Profit before tax 23.5 -27.9% 32.6 Taxation (9.0) (11.4) Profit after tax 14.5 21.
Slide 5: Exceptional Items
25 February 2004 2003 Preliminary Results Exceptional 2003 H1 2003 H2 2003 Year £m £m £m Items Surplus property costs (3.0) 0.0 (3.0) Release of payroll tax provision on RSS 3.5 (1.6) 1.9 Net exceptional items 0.5 (1.6) (1.1) Taxation on exceptional items (0.2) 0.5 0.3 Exceptional items after tax 0.
Slide 6: Earnings per share and dividends
25 February 2004 2003 Preliminary Results Earnings Earnings per share 2003 2002 Basic 3.8p 5.8p per share Before exceptional 4.1p 5.8p and Dividend Interim 1.1p per share dividends Final Total 2.3p per share 3.4p per share Final payable on 4 June 2004 www.michaelpage.co.uk michael page international
Slide 7: Cash flow
25 February 2004 2003 Preliminary Results Cash flow 2003 £m 2002 £m Operating profit before exceptional items 22.9 32.1 Exceptional items (1.1) - Depreciation and amortisation 7.9 8.4 (Increase)/decrease in debtors (0.3) 10.3 Decrease in creditors (0.4) (4.1) Movement in provisions 0.2 - Net cash in
Slide 8: Balance sheet
25 February 2004 2003 Preliminary Results Balance 2003 £m 2002 £m sheet Goodwill 1.5 1.6 Tangible assets 23.1 23.5 Total Fixed Assets 24.6 25.1 Debtors 71.5 70.8 Creditors (59.0) (62.4) 12.5 8.4 Net cash 22.4 21.4 Provisions (6.2) (6.0) Net assets 53.3 48.9 www.michaelpage.co.uk michael page interna
Slide 9: Discipline Analysis
25 February 2004 2003 Preliminary Results Discipline Turnover 2003 £m % 2002 £m % Analysis Finance & Accounting 256.7 68.9% 277.8 72.4% Marketing, Sales, Retail 61.8 16.6% 54.6 14.2% Other 54.1 14.5% 51.1 13.3% 372.6 383.5 Revenue Finance & Accounting 113.6 63.6% 126.5 65.7% Marketing, Sales, Retail
Slide 10: Perm/Temp Analysis
25 February 2004 2003 Preliminary Results Perm/Temp Turnover 2003 £m % 2002 £m % Analysis Permanent 128.8 34.6% 141.2 36.8% Temporary 243.8 65.4% 242.3 63.2% 372.6 383.5 Revenue Permanent 121.8 68.3% 132.9 69.0% Temporary 56.7 31.7% 59.7 31.0% 178.5 192.6 Gross Margin Permanent 94.6% 94.1% Temporary
Slide 11: Results: United Kingdom
25 February 2004 2003 Preliminary Results 2003 2003 2003 H2 on H1 2003 2002 H1 H2 change Year Year Results Turnover £m 92.1 £m % 102.2 11.0% £m 194.3 £m 203.9 United Kingdom Revenue 43.7 46.9 7.2% 90.6 99.3 Operating profit 6.7 8.9 32.5% 15.6 20.4 Operating margin 15.4% 19.0% 17.3% 20.6% Headcount a
Slide 12: Results: United Kingdom - Finance and Accounting
25 February 2004 2003 Preliminary Results 2003 UK represents approximately 51% of 2003 Group revenue Results FINANCE AND ACCOUNTING • Approximately two thirds of UK business United Kingdom • Revenue 12% lower • Finance Q4 revenue highest in year despite December • City revenue 20% lower, significant
Slide 13: Results: United Kingdom - Sales, Marketing and Retail
25 February 2004 2003 Preliminary Results 2003 SALES, MARKETING AND RETAIL • 23% of revenue; 7% lower than 2002 Results • Increasing activity across all sectors United Kingdom • Level of enquiries from TMT increasing • Retail comparatively better with 9% revenue increase in H2 • National coverage in
Slide 14: Results: United Kingdom - Legal, Technology, HR, Engineering
25 February 2004 2003 Preliminary Results 2003 LEGAL, TECHNOLOGY, HR AND ENGINEERING • Good year in Legal with level revenue for year and Results 6% up in the second half • Technology strong second half United Kingdom • HR (4 offices) and Engineering and Supply Chain Management (5 offices) both incr
Slide 15: Results: Continental Europe
25 February 2004 2003 Preliminary Results 2003 2003 2003 H2 on H1 2003 2002 H1 H2 change Year Year Results Turnover £m 62.1 £m 58.3 % -6.2% 120.4 £m £m 127.6 Continental Europe Revenue 30.6 27.6 -9.8% 58.2 66.3 Operating profit 0.9 (1.2) (0.3) 5.6 Operating margin 3.1% -4.4% -0.5% 8.5% Headcount at
Slide 16: Results: Continental Europe commentary
25 February 2004 2003 Preliminary Results 2003 Continental Europe represents approximately 33% of 2003 Group revenue Results • France – Approximately 20% of Group 2003 revenue Continental Europe • France - Permanent revenue 22% lower, temp revenue 16% lower • French staff reduced by 25% during year
Slide 17: Results: Asia Pacific
25 February 2004 2003 Preliminary Results 2003 2003 2003 H2 on H1 2003 2002 H1 H2 change Year Year Results Turnover £m 23.7 £m % 27.7 17.2% £m 51.4 £m 46.7 Asia Pacific Revenue 11.5 13.5 17.3% 25.0 22.9 Operating profit 3.2 4.4 38.4% 7.6 6.8 Operating margin 27.6% 32.6% 30.3% 29.8% Headcount at peri
Slide 18: Results: Asia Pacific commentary
25 February 2004 2003 Preliminary Results 2003 Asia Pacific represents approximately 14% of 2003 Group Revenue Results • Australian economy resilient with strong domestic businesses benefiting our offices in Melbourne and Asia Pacific Perth • International business in Sydney slower but improved in s
Slide 19: Results: Americas
25 February 2004 2003 Preliminary Results 2003 2003 2003 H2 on H1 2003 2002 H1 H2 change Year Year Results Turnover £m 2.6 £m % 4.0 54.9% £m 6.6 £m 5.4 Americas Revenue 1.9 2.7 42.2% 4.6 4.1 Operating profit (0.2) 0.1 (0.1) (0.7) Operating margin -12.1% 5.5% -1.3% -18.1% Headcount at period end 72 8
Slide 20: Results: Americas commentary
25 February 2004 2003 Preliminary Results 2003 The Americas represents approximately 2% of 2003 Group revenues Results • Third US office opened in Stamford, CT • Significant progress made in second half Americas • Starting to build temp business • New offices in Boston and Chicago planned for 2004 •
Slide 21: Group Quarterly Revenue
25 February 2004 2003 Preliminary Results Group Quarterly Revenue Revenue Trend 2001 to £m 2003 69.6 66.9 58.7 49.9 49.5 51.4 47.8 43.9 42.8 45.0 45.0 45.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2001 2002 2003 www.michaelpage.co.uk michael page international
Slide 22: Current Trading
25 February 2004 2003 Preliminary Results Current • • Activity levels improved during second half of 2003 4th quarter revenue highest in year and represents Trading first year on year increase since Q1 2001 • Clear evidence of increased activity in the UK • Trading conditions in Continental Europe r
Slide 23: Global Job Count
25 February 2004 2003 Preliminary Results Global Job Count www.michaelpage.co.uk www.michaelpage.co.uk michael page international
Slide 24: Strategy
25 February 2004 2003 Preliminary Results Strategy • • Continue to invest in people and systems IT system roll out, already live in UK, France & USA • Accelerate investment in USA • Reviewing opportunities in Greater China www.michaelpage.co.uk michael page international
Slide 25: Michael Page International
Michael Page INTERNATIONAL
Michael Page International — FY2003 Earnings Presentation on 6ix