PageGroup PLC · LSE:PAGE
PageGroup — H1 2024 Earnings Presentation
25 slides from PageGroup's earnings presentation, August 2024
Slide 1: Half Year Results 2024
Overview Financial Review Strategic Review Summary Half Year Results 2024
Slide 2: Headline Numbers
Overview Financial Review Strategic Review Summary Headline Numbers Kelvin Stagg Chief Financial Officer
Slide 3: Key financial highlights
Overview Financial Review Strategic Review Summary Key financial highlights Challenging market conditions across all regions in H1 Gross Profit £444.1m Operating £28.4m Profit £63.9m H1 2023 £526.8m H1 2023 -12.4% 6.4% Conversion Constant Currency Rate vs H1 2023 12.1% H1 2023 +26% Basic EPS 5.3p +2
Slide 4: Financial Review
Overview Financial Review Strategic Review Summary Financial Review
Slide 5: Group Operating Profit of £28.4m
Overview Financial Review Strategic Review Summary Group Operating Profit of £28.4m Lower conversion rates across all regions H1 2024 H1 2023 GP Growth Operating Conversion Operating Conversion £m Gross Profit Gross Profit Rate (CC %) Profit Rate* Profit Rate Group 444.1 -12.4% 28.4 6.4% 526.8 63.9
Slide 6: Effective Tax Rate (ETR)
Overview Financial Review Strategic Review Summary Effective Tax Rate (ETR) Effective tax rate increased to 39.5% £m H1 2024 H1 2023 Profit Before Tax 27.7 63.3 Tax Charge 10.9 20.2 Effective Tax Rate 39.5% 31.9% • Expect tax rate of c. 35% for the full year 6
Slide 7: Robust balance sheet
Overview Financial Review Strategic Review Summary Robust balance sheet Net cash of £57.2m £m H1 2024 H1 2023 Intangible assets 27.3 35.7 Tangible assets 46.5 37.7 Lease assets 99.3 93.4 Trade and other receivables 371.2 424.6 Trade, other payables, current and deferred taxes (216.9) (251.8) Lease L
Slide 8: Strong cash flow generation
Overview Financial Review Strategic Review Summary Strong cash flow generation Final 2023 dividend payment of £35.2m in June 150 12.4 7.1 7.4 61.6 20.7 110 13.2 £m 139.3 132.2 124.8 70 35.2 104.1 0.5 1.0 90.1 90.1 90.9 55.7 56.2 57.2 57.2 30 Dec 23 EBITDA Working Tax and Net capex Lease EBT Dividend
Slide 9: Clear capital allocation strategy
Overview Financial Review Strategic Review Summary Clear capital allocation strategy £16.8m dividend to be paid in October 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 supplement
Slide 10: Strategic Review
Overview Financial Review Strategic Review Summary Strategic Review Nick Kirk Chief Executive Officer
Slide 11: Our Strategic Goals
Overview Financial Review Strategic Review Summary Our Strategic Goals OPERATING SOCIAL IMPACT 1m PROFIT £400m LIVES CHANGED CUSTOMER EXPERIENCE 60+ NPS 11
Slide 12: Embedding our Strategy
Overview Financial Review Strategic Review Summary Embedding our Strategy MAXIMISING LEVERAGING OUR CORE OUR GLOBAL PLATFORMS Core Business Technology Page Executive Enterprise Solutions 12
Slide 13: Our Strategic Pillars: Core and Technology
Overview Financial Review Strategic Review Summary Our Strategic Pillars Core and Technology CORE TECHNOLOGY Progressing with strategy despite Technology was a tough sector challenging markets globally Continuing to review business lines, Markets delivering growth include moving fee earners into are
Slide 14: Our Strategic Pillars: Page Executive and Enterprise Solutions
Overview Financial Review Strategic Review Summary Our Strategic Pillars Page Executive and Enterprise Solutions PAGE EXECUTIVE ENTERPRISE SOLUTIONS Delivered GP growth of 6% vs H1 2023 Transitioned from a regional to global structure for our leadership, sales and account management A record H1 perf
Slide 15: Summary
Overview Financial Review Strategic Review Summary Summary
Slide 16: Summary
Overview Financial Review Strategic Review Summary Summary 2024 outlook unchanged Challenging market conditions continued across all regions Softening in activity levels towards the end of H1 Temporary recruitment continued to outperform permanent Intend to hold onto fee earner headcount Highly dive
Slide 17: Appendix
Overview Financial Review Strategic Review Summary Appendix
Slide 18: Our business model
Overview Financial Review Strategic Review Summary Our business model 18
Slide 19: Significant variations in recruitment mix
Overview Financial Review Strategic Review Summary Significant variations in recruitment mix Geography Brands 19% 14% 17% 32% 27% 53% 81% 86% 83% 68% 73% 47% EMEA Americas Asia Pacific UK Michael Page Page Personnel Temp Perm 19
Slide 20: Long term fee earner & international growth
Overview Financial Review Strategic 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 2,794 2,000 1,120 1,000 951 733 - 1990-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Slide 21: Quarterly gross profit & fee earners
Overview Financial Review Strategic Review Summary Quarterly gross profit & fee earners Quarterly gross profit reduced from Q2 2022 7000 300 6000 250 5000 Gross Profit (£m) as reported 200 4000 Fee Earners 150 3000 100 2000 50 1000 0 0 Q1 Q2 Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q4 Q1 Q2 Q1 Q3 Q2 Q1 Q2 Q3 Q4 Q2 Q3 Q
Slide 22: Year-on-Year gross profit growth rates
Overview Financial Review Strategic Review Summary Year-on-Year gross profit growth rates 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 EMEA +41.1% +29.4% +22.1% +11.9% +6.8% +1.4% -1.3% -6.1% -12.7% -10.2% Asia Pacific +35.8% +11.7% -3.9% -15.8% -17.0% -17.2% -11.0% -10.3% -15.7% -19.8% – Asia +39.9
Slide 23: Contacts and Calendar
Overview Financial Review Strategic Review Summary Contacts and Calendar Contacts Date Event Matt Clark – Group Financial Controller 14 October 2024 Q3 2024 Trading Update Tel: +44 (0) 1932 264 022 Email: investorrelations@michaelpage.com Web: https://www.page.com/investors 23
Slide 24: Disclaimer
Overview Financial Review Strategic 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 25: Overview Financial Review Strategic Review
Overview Financial Review Strategic Review Summary 25