First Quarter 2015 Interim Management Statement 2 Trading - - PowerPoint PPT Presentation

First Quarter 2015 Interim Management Statement

2

Trading Performance

Reported (£m) Constant Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Q1 2015 vs Q1 2014 135.6 126.6 +7.2% +10.9%

• Gross Profit +10.9% vs Q1 2014 in constant currency
• In reported rates Gross Profit +7.2%
• At constant currency, Gross Profit was £140.4m

(+£4.8m on reported rates)

3

Permanent vs Temporary

Reported (£m) Constant Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Permanent 105.1 97.7 +7.6% +10.9% Temporary 30.5 28.9 +5.8% +11.0% Ratio (Perm:Temp) 77:23 77:23

4

Headcount

Q1 2015 Q4 2014 Movement % Headcount 5,680 5,578 +102 +1.8% Fee Earners 4,343 4,278 +65 +1.5% Support Staff 1,337 1,300 +37 +2.8% Ratio 76:24 77:23

• Implementation team for PRS in Europe
• Transfer overlap to consolidate support function
• Closure of Moscow office and exit from Russia

5

Headcount and Reported Gross Profit

• Total headcount increased by 1.8% during Q1 to 5,680 (Q4 2014: 5,578)

6

Discipline Overview

Reported (£m) Constant Year-on-Year Gross Profit % of Group Q1 2015 Q1 2014 % % Finance & Accounting 40% 54.3 49.3 +10.0% +13.8% Legal, Technology , HR, Secretarial and Healthcare 20% 27.8 25.7 +8.3% +11.5% Engineering, Property & Construction, Procurement & Supply Chain 20% 26.5 26.0 +2.2% +6.5% Marketing, Sales and Retail 20% 27.0 25.6 +5.6% +9.3% Group Total 100% 135.6 126.6 +7.2% +10.9%

• Positive contributions from all disciplines; strongest performance from Finance &

Accounting

• Discipline mix remains consistent with December position

7

Regional Overview

Reported (£m) Constant Year-on-Year Gross Profit % of Group Q1 2015 Q1 2014 % % EMEA 40% 54.0 52.7 +2.6% +12.1% UK 27% 36.5 32.8 +11.3% +11.3% Asia Pacific 19% 25.8 23.0 +12.3% +10.8% Americas 14% 19.3 18.1 +6.7% +7.1% Group Total 100% 135.6 126.6 +7.2% +10.9%

• Strongest performance in EMEA
• UK continues to grow at a double-digit growth rate
• Asia Pacific: continued good growth in Greater China
• Americas +7% impacted by macro-economic environment in Brazil -14%

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EMEA (40% of Group)

• France (13% of Group) +5%
• Page Personnel (Temp/Perm < €40,000) 60% of France: +2%
• Michael Page (Perm > €40,000) 40% of France: +10%
• Germany (6% of Group) +17%
• Page Personnel +29%
• EMEA Page Personnel +15%
• Southern Europe +29%, Switzerland and Poland both grew over 30%
• Middle East impacted by oil prices, up 9%.

Reported (£m) Constant Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Q1 2015 vs Q1 2014 54.0 52.7 +2.6% +12.1% Headcount up 49 (+2.3%) to 2,162

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United Kingdom (27% of Group)

• Strong performances include Finance & Accounting, Sales, Logistics and Property &

Construction

• Page Personnel +25% on Q1 2014, 18% of the UK
• Michael Page +8% on Q1 2014, 82% of the UK
• Private sector +12% on Q1 2014, 87% of the UK
• Public sector +8% on Q1 2014, 13% of the UK

Reported (£m) Year-on-Year Gross Profit Q1 2015 Q1 2014 % Q1 2015 vs Q1 2014 36.5 32.8 +11.3% Headcount up 22 (+1.5%) to 1,463

10

Asia Pacific (19% of Group)

• Asia (13% of Group and 70% of Asia Pacific) +14%
• Strong performance from Greater China +18% and Japan +14%
• Malaysia and Indonesia +40%
• Record quarter for India +41%
• Australasia (6% of Group and 30% of Asia Pacific) +4%
• Australia +4%, Page Personnel +25%

Reported (£m) Constant Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Q1 2015 vs Q1 2014 25.8 23.0 +12.3% +10.8% Headcount up 23 (+2.0%) to 1,164

11

Americas (14% of Group)

• Latin America (7% of the Group) +4%
• Brazil -14% impacted by adverse macroeconomic factors
• Latin America, ex-Brazil (50% of Latin America) +35%
• Record quarter for Mexico +38%
• North America (7% of the Group) +11%
• US impacted by severe weather and falling oil prices

Reported (£m) Constant Year-on-Year Gross Profit Q1 2015 Q1 2014 % % Q1 2015 vs Q1 2014 19.3 18.1 +6.7% +7.1% Headcount up 8 (+0.9%) to 891

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Summary

• Q1 Gross Profit: +10.9% in constant currency and +7.2% in

reported rates

• Large, High Potential Markets: Gross Profit +10% in constant

currency, Fee Earner Headcount +1%.

• Impact of FX: 3.7% impact on Reported figures

Equivalent to:

• £4.8m in Gross Profit
• £0.6m in Operating Profit
• Q1 Headcount: 5,680 in Q1
• 4,343 Fee Earners
• Fee Earner to Operational Support Staff ratio of 76:24
• Financial Position: c. £100m Net Cash
• Cash inflow of £17.8m from share exercises

13

Summary

• Trends in market conditions expected to prevail across major

regions

• Brazil expected to remain challenging in the short-term
• Page Personnel progressing strongly
• Adverse effect of foreign exchange movements
• Focus on conversion rates and productivity
• Selective investment in fee-earner headcount
• No planned new offices or countries
• Continued roll-out of PRS
• Full year results in line with Board expectations

Outlook

15

Year-on-Year Gross Profit Growth Rates

2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 EMEA

• 15.0%
• 8.2%
• 7.1%
• 1.4%

+5.7% +5.1% +11.2% +12.5% +12.1% UK

• 1.2%

+0.3% +5.0% +5.1% +8.1% +11.1% +13.7% +11.0% +11.3% Asia Pacific

• 0.3%
• 8.0%
• 4.3%
• 5.7%

+1.3% +14.2% +11.1% +10.8% +10.8%

• Asia

+13.5% +1.6% +7.4% +2.7% +8.0% +25.0% +16.5% +15.0% +14.1%

• Australasia
• 16.1%
• 21.3%
• 19.7%
• 18.3%
• 9.5%
• 2.9%

+1.7% +2.7% +3.9% Americas +2.1% +9.8% +16.8% +6.7% +16.2% +8.5% +9.6% +20.2% +7.1%

• North America

+15.8% +29.8% +26.0% +30.0% +30.5% +15.5% +22.3% +20.3% +10.6%

• Latin America
• 2.1%

+1.4% +12.6%

• 4.8%

+7.4% +4.2% +1.5% +19.9% +4.2% Group Total

• 6.7%
• 3.8%
• 0.3%

+0.3% +6.8% +8.9% +11.6% +12.9% +10.9%

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Cautionary Statement

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