full year results 2020 - page group

29
Steve Ingham Kelvin Stagg Chief Executive Officer Chief Financial Officer LSE: PAGE.L Website: http s://www.page.com/investors 3 March 2021 Full Year Results 2020

Upload: others

Post on 15-Nov-2021

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Full Year Results 2020 - Page Group

Steve Ingham

Kelvin Stagg

Chief Executive Officer

Chief Financial Officer

LSE: PAGE.L

Website: https://www.page.com/investors

3 March 2021

Full Year Results 2020

Page 2: Full Year Results 2020 - Page Group

Headline Numbers

Kelvin Stagg, Chief Financial Officer

Page 3: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

3

Group operating profit of £17.0m, EPS of -1.8p

FY Overview

£610.2m£855.5m FY 2019

-28.1%+5.0% FY 2019

Gross Profit

Constant

Currency

Growth

£17.0m£146.7m FY 2019

2.8%17.1% FY 2019

Operating

Profit

Conversion

Rate

136.9%

28.3% FY 2019

-1.8p32.2p FY 2019

Effective

Tax Rate

Earnings

Per Share

£166.0m£97.8m FY 2019

6,6947,698 FY 2019

-26.43p FY 2019

Net Cash

Total

Headcount

Page 4: Full Year Results 2020 - Page Group

Financial Review

Page 5: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

Fee earner headcount stabilising

Protecting and investing in our platform

5

0

1500

3000

4500

6000

0

50

100

150

200

250

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Fee E

arn

ers

Gro

ss P

rofit

(£m

) as r

eport

ed

Fee Earners

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Page 6: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

6

COVID-19 impacted profitability in all of our regions

Group Conversion Rate of 2.8%

FY 2020 FY 2019

£m Gross ProfitGP Growth

Rate (CC %)

Operating

Profit

Conversion

Rate*Gross Profit

Operating

Profit

Conversion

Rate*

Group 610.2 -28.1% 17.0 2.8% 855.5 146.7 17.1%

EMEA 319.4 -24.4% 30.6 9.6% 418.3 90.3 21.6%

Asia Pacific 121.1 -25.1% 3.8 3.1% 163.3 19.8 12.1%

Americas 88.8 -31.4% -7.0 -7.9% 138.8 19.3 13.9%

UK 80.9 -40.0% -10.3 -12.8% 135.1 17.3 12.8%

• Conversion rate decrease to 2.8%, due to sharp decline in gross profit due to COVID-19

• EMEA the most resilient region, the Americas and the UK most impacted

* Operating profit as a percentage of gross profit

Page 7: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

Increase in Effective Tax Rate

£m 2020 2019 Reported %

Profit Before Tax 15.5 144.2 -89.2%

Tax Charge 21.3 40.8 -47.8%

Overseas Tax 61.7%

Losses 22.3%

Disallowable and other

permanent differences33.9%

UK Tax 19.0%

Effective Tax Rate 136.9% 28.3%

7

• Expect tax rate to return to pre-COVID levels of c. 27% - 28% in the medium-term

Page 8: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

Net cash of c. £166m

A strong and robust balance sheet

8

£m 2020 2019

Intangible assets 41.8 39.1

Tangible assets 26.4 31.9

Right-of-use assets 95.4 120.2

Trade and other receivables 265.6 380.6

Trade, other payables, current and deferred taxes (175.8) (216.6)

Lease liabilities (103.5) (128.6)

Net cash 166.0 97.8

Net assets 315.9 324.4

Page 9: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

Increase mainly due to unwind of working capital

Strong net cash position of £166m

Cash Increase Decrease

9

97.8

166.0

84.3

84.6

31.6

21.7 0.4

14.4

39.2

40

80

120

160

200

240

280

Dec 19 EBITDA WorkingCapital

Tax and netinterest

Net capex Share optionsexercised

EBT sharepurchases

Lease Liabilityrepayments

Exchange Dec 20

£m

5.8

Page 10: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

10

Decision to repay UK Furlough

Improvement in conditions through 2020

Page 11: Full Year Results 2020 - Page Group

Strategic Progress

Steve Ingham, Chief Executive Officer

Page 12: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

One integrated platform

12

Investments – Customer Connect

Revenue Attribution

Better visibility Better alignment Better customer experience

of activity delivered

and followed up…

enabling consultants to

do what they do best…

by managing engagement across

all touch points…

Single Global

Web Platform

Intelligent automation engaging customers throughout lifecycleIntelligent automation engaging customers throughout lifecycle

Engaging the Talent Pool

Reactivated client programme

Candidate

Client

Personalised campaigns, driving conversion rates

Ongoing relevant campaigns:

win-back and cross-sell

Talent pools refined: identify engaged candidate database

Joined up view of client contact activity and revenue

generation

Candidate to Client transformation

Page 13: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

Investments – Page Insights

Unique business intelligence tool providing our customers invaluable insights

and supporting our data-driven decisions and targeting

Combines internal and external data sources

• Global data from hundreds of millions of job postings

• Internal application data

• Government labour statistics

13

Page 14: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

Approaching 400 experienced hires added during 2020

Experienced hires

14

Final dividend of 9.00 pence per share, increase on 2017 of +4.7%

Ongoing investment continues in 2021

Focused in our strategic areas of investment

Adding value to our existing fee earners

Shorter timeline to full productivity

Experienced in recruitment, average of 4 years

Page 15: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

Strengthening the Executive Board

15

New Appointments New Roles

Eamon Collins – Chief Customer Officer (CCO)

14 years

Isabelle Bastide – Regional Managing Director,

France, Spain and Portugal

21 years

Nicholas Kirk – Regional Managing Director,

North America and the UK

26 Years

Nicolas Béchu – Regional Managing Director,

Northern and Central Europe, Italy and Turkey

25 Years

Patrick Hollard – Regional Managing Director,

Latin America, Middle East and Africa

25 Years

Anthony Thompson – Regional Managing

Director, Asia Pacific

20 Years

Oliver Watson – Chief Operating Officer (COO)

25 Years

Gary James – Chief People Officer (CPO)

36 Years

Page 16: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

Integrating in to our business

Sustainability

16

• Environment – 26% reduction in reported

CO2 emissions during 2020, all of which

have been offset.

• Social – integrating the UN Sustainable

Development Goals into our business.

• Governance – We have joined the UN

Global Compact

Page 17: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

17

Cultural FrameworkContinued work on our culture, purpose and values

Page 18: Full Year Results 2020 - Page Group

Summary and Outlook

Page 19: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

2020 impacted significantly by COVID-19

Summary

19

Final dividend of 9.00 pence per share, increase on 2017 of +4.7%

Repayment of UK Furlough

Continued suspension of dividend policy

Strong Balance Sheet with net cash of £166.0m

Investment in 400 experienced fee earners, Customer Connect and

Page Insights

Fee earners reduced by 882, -14.6%

Operating Profit of £17.0m, Conversion rate of 2.8%

Gross Profit in constant currency -28.1%

Page 20: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

High degree of global macro-economic uncertainty

Outlook

20

Final dividend of 9.00 pence per share, increase on 2017 of +4.7%

Final dividend of 9.00 pence per share, increase on 2017 of +4.7%

Maintained our focus on long-term vision for the Group

Highly experienced senior management team

Continue the roll out of technology and innovation

Continue to maintain the platform and investing carefully in headcount

Brexit deal has provided a degree of clarity

Rolling lockdowns across the Group

Page 21: Full Year Results 2020 - Page Group

Appendix

Page 22: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

22

Our business model

Page 23: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

23

Delivering on our global diversification strategy

A growing international business

FY 2007 FY 2013 FY 2020

Gross Profit

InternationalUK

Page 24: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

66%

84% 84%

63%

34%

16% 16%

37%

EMEA Asia Pacific Americas UK

Temp Perm

24

Geography Brands

Significant variations in recruitment mix

FY 2020 FY 2020

81%

50%

19%

50%

Michael Page Page Personnel

Page 25: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

EMEA

AMERICAS

ASIA

PACIFIC

25

Portugal

(2000)

Switzerland

(2001)

Belgium

(2002)

Sweden

(2002)

Poland S Africa

Ireland

UAE

Austria

Turkey

Luxembourg

Morocco

Thailand

Indonesia

Taiwan

India

MalaysiaNew

Zealand

Japan

(2001)

China

(2003)

Australia

(1985)

USA (1998) Brazil (2000) Canada Mexico Chile Colombia Peru

INT

ER

NA

TIO

NA

L G

RO

WT

H

France

(1986)

Netherlands

(1987)

Germany

(1993)

Spain

(1997)

Italy

(1997)

Hong Kong

(1995)

Singapore

(1996)

Argentina

UKASIA

PACIFICEMEA AMERICAS

Long term fee earner and international growth

Vietnam

1985-1990 1990-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

922813

2,321

1,089

Philippines

Panama

Page 26: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

26

Fee earner investment and support staff

Page 27: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

27

Year-on-Year Gross Profit Rates

2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

EMEA +18.2% +18.6% +20.9% +13.9% +11.4% +9.0% +5.6% +2.3% -11.1% -42.9% -24.5% -18.6%

Asia Pacific +13.8% +18.4% +27.7% +22.0% +14.9% +4.7% -8.1% -7.9% -16.6% -41.7% -28.2% -10.2%

– Asia +17.8% +21.2% +32.2% +21.2% +15.6% +5.8% -10.6% -7.6% -17.1% -38.1% -23.4% -4.3%

– Australasia +4.3% +10.6% +15.7% +25.0% +13.0% +0.9% +1.1% -9.6% -16.6% -53.7% -43.6% -28.4%

Americas +20.4% +29.2% +30.1% +29.2% +21.4% +17.4% +13.0% +5.0% -3.0% -55.0% -41.9% -23.2%

– North America +16.4% +27.0% +27.2% +30.3% +20.9% +18.9% +10.3% +4.6% +2.5% -49.4% -38.7% -30.0%

– Latin America +25.7% +32.2% +33.9% +27.7% +21.6% +15.3% +16.9% +5.5% -10.8% -63.5% -46.5% -12.7%

UK -7.1% -1.9% +0.8% +2.1% +1.7% -2.4% -4.1% -4.8% -16.0% -61.5% -47.9% -34.2%

Group Total +12.3% +16.0% +19.7% +15.4% +11.7% +7.4% +2.1% -0.4% -11.7% -47.6% -31.9% -20.2%

Page 28: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

28

Contacts and Calendar

Contacts

Jeremy Tatham – Group Financial Controller

Tel: +44 (0) 1932 264 143

Email: [email protected]

Web: https://www.page.com/investors

Date Event

14 April 2021 Q1 2021 Trading Update

Page 29: Full Year Results 2020 - Page Group

Headline Numbers Financial Review Strategic Progress Summary and Outlook

29

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 to, or use by, any person or entity in any jurisdiction in any country where such distribution or

use would be contrary to law or regulation, or which would subject any member of the PageGroup plc group of companies

to any registration requirement. No representation or warranty, express or implied, is or will be made in relation to the

accuracy, fairness or completeness of the information or opinions made in this presentation.

Certain statements included or incorporated by reference within this presentation may constitute “forward-looking

statements” that are based on current expectations or beliefs, as well as assumptions about future events. There are risk

factors that can cause actual results to differ materially from those expressed in or implied by such statements.

Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on

any forward-looking statement.

PageGroup plc disclaims any intention or obligation to revise or update any forward-looking statements that may be made

in this presentation, regardless of whether those statements are affected as a result of new information, future events or

otherwise. Nothing in this presentation should be construed as a profit forecast.

This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to

purchase any shares in PageGroup plc, nor shall it or any part of it or the fact of its distribution form the basis of, or be

relied on in connection with, any contract or commitment or investment decision relating thereto, nor does it constitute a

recommendation regarding the shares of PageGroup plc. Past performance cannot be relied upon as a guide to future

performance. Liability arising from anything in this presentation shall be governed by English Law. Nothing in this

presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

Disclaimer