Steve Ingham Kelvin Stagg Chief Executive Officer Chief Financial Officer LSE: PAGE.L Website: http://www.page.com/investors 14 January 2019 Q4 2018 and FY18 Trading Update “A record Quarter and Year for the Group”
Steve Ingham
Kelvin Stagg
Chief Executive Officer
Chief Financial Officer
LSE: PAGE.L
Website: http://www.page.com/investors
14 January 2019
Q4 2018 and FY18 Trading Update
“A record Quarter and Year for
the Group”
Headline Numbers
Kelvin Stagg, Chief Financial Officer
Q4 18
Headline Numbers Financial Review Regional Review Summary
+15.4%+15.9% FY 2018
+15.8%+14.5% FY 2018
3
Key financial highlights
A record Quarter and Year for the Group
£211.1m£182.4m Q4 2017
£815.0m £711.6m FY 2017
Gross Profit
Q4
Gross Profit
FY
Michael
Page Q4
Page
Personnel Q4
79:216,116:1,656 FTE
c. £96mc. £96m Q4 2017
Fee earner to
operational
support staff
ratio
Net Cash
Growth in
Constant
Currency Q4
Reported
Rates Q4
+14.2%+19.0% Q3 2018
+17.9%+21.4% Q3 2018
Financial Review
Q4 18
Headline Numbers Financial Review Regional Review Summary
76%
24%
Perm Temp
84%
16%
Perm Temp
58%
42%
Perm Temp
5
• Gross Profit growth in
permanent +17.6% to £159.9m
• Temporary +9.0% to £51.2m
• Perm:Temp ratio 76:24, slightly
up on the prior year
• Gross Profit growth in
permanent +15.3% to £120.9m
• Temporary +8.7% to £23.2m
• Gross Profit growth in
permanent +25.0% to £39.0m
• Temporary +9.2% to £28.0m
Growth across brands in Perm and TempBusiness balance reflects brands and geographic mix
Q4 18
Headline Numbers Financial Review Regional Review Summary
6
Discipline diversification progress
35%
25%
24%
16%
25%25%25%25%
Finance
Professional Services
Technical
Marketing, Sales and Retail
Gross Profit
by Discipline
Q4 2018 £m 2017 £m Reported % Constant %
Finance
Accounting and Financial
Services74.6 66.7 +11.8% +11.7%
Professional Services
Legal, Technology, HR,
Secretarial, Healthcare51.8 41.4 +25.0% +24.5%
Technical
Engineering, Property &
Construction, Procurement &
Supply Chain
50.2 42.4 +18.5% +17.5%
Marketing, Sales and Retail 34.5 31.9 +8.4% +8.4%
Group Total 211.1 182.4 +15.8% +15.4%
Professional Services disciplines delivered strongest growth
Q4 18
Headline Numbers Financial Review Regional Review Summary
1,660 1,656
6,058 6,116
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Q3 2018 Q4 2018
He
ad
co
un
t
Support Staff Fee Earners
+58
• Increase in fee earners of 58 (+1.0%)
• Fee earner headcount added in our Large, High
Potential markets, as well as where we saw
strongest growth, such as India
• Fee earner headcount additions in all regions
• Marginal reduction in support staff of 4
7
Total headcount
+0.7%
A new record headcountRatio of fee earners to support staff at a new record of 79:21
-4
Q4 18
Headline Numbers Financial Review Regional Review Summary
8
49
.5
51
.4
47
.8
43
.9
42
.8
45
.0
45
.0
45
.7
48
.1
52
.3
53
.5
56
.7
59
.9 68
.3
69
.2
70
.2 79
.2 87
.4
89
.1
93
.1 10
5.5 12
1.0
12
3.4
12
8.2
14
0.3
15
2.4
14
1.3
11
8.7
95
.0
83
.8
82
.3 90
.6 97
.9 11
1.7
11
2.8
11
9.9
12
7.3 1
47
.8
14
2.6
13
6.1
13
5.9
13
8.0
12
6.5
12
6.5
12
6.8
13
5.1
12
6.9
12
5.1
12
6.6
13
7.1
13
2.9
13
6.2
13
5.7
14
5.3
13
9.1
13
5.8
14
2.2 15
6.9
15
8.6
16
3.3
17
0.2
18
1.8
17
7.2
18
2.4
18
7.7 2
08
.2
20
7.7
21
1.1
21
0.4
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Fee E
arn
ers
Gro
ss P
rofit
(£m
) as r
eport
ed
Fee Earners
Record Quarter and YearInvestment reflects confidence in growth markets
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 2016 20172014 2018
Q4 18 Constant currency
Regional Review
Steve Ingham, Chief Executive Officer
Q4 18
Headline Numbers Financial Review Regional Review Summary
49%
20%
16%
15%
25%25%25%25%EMEA Asia Pacific UK Americas
Q4 growth rate of 15.4%
Gross Profit
by Geography
Q4 2018 £m 2017 £m Reported % Constant %
EMEA 104.4 90.9 +14.9% +13.9%
Asia Pacific 41.2 33.5 +23.1% +22.0%
UK 33.5 32.8 +2.1% +2.1%
Americas 32.0 25.2 +27.0% +29.2%
Group Total 211.1 182.4 +15.8% +15.4%
Large, High Potential markets* +25%
10
• 20 countries achieved YoY growth of over 20%
• Growth in all four regions
• Americas fastest growing region, record quarter in Latin America
*Germany, Greater China, Latin America, South East Asia and the US
Q4 18
Headline Numbers Financial Review Regional Review Summary
France34%
S. Europe20%
Germany16%
Benelux15%
Other15%
• Michael Page (55% of EMEA) +13%, Page Personnel (45%) +15%
• France, now the largest country in the Group, +10%, despite tough
comparator in Q4 2017 of +28%
• Impact of disruption from ‘gilet jaunes’ protests
• Germany +28%; Michael Page Interim +44%
• Benelux +13%; Netherlands +15%
• Southern Europe +16%; Italy +23%; Spain +10%
• Middle East & Africa +19%
11
49% of Group
Gross Profit
by Geography
EMEA delivered a record quarterStrong growth across all brands
£m Period 2018 2017Reported
%
Constant
%
Gross Profit
Q4 104.4 90.9 +14.9% +13.9%
FY 394.2 332.3 +18.6% +17.9%
Headcount 3,299 2,996 +10.1%
Q4 18
Headline Numbers Financial Review Regional Review Summary
Greater China40%
Australasia25%
SE Asia & India21%
Japan14%
• Greater China, our fourth largest market and 8% of the Group, +12%
• Mainland China experienced slowing activity due to uncertainty
around trade tariffs
• South East Asia +30%; strong growth in Singapore +37%
• Japan +28%, both Gaishikei and Nikkei markets strong
• India +79%
• Australia +25%, strong growth in all offices
20% of Group
Gross Profit
by Geography
Asia Pacific continues strong growthGreater China growth impacted by market uncertainty
12
£m Period 2018 2017Reported
%
Constant
%
Gross Profit
Q4 41.2 33.5 +23.1% +22.0%
FY 161.3 137.2 +17.5% +20.7%
Headcount 1,709 1,532 +11.6%
Q4 18
Headline Numbers Financial Review Regional Review Summary
London36%
North22%
South24%
Midlands18%
• Brexit continued to weigh on market sentiment, particularly
with more senior candidates
• Page Personnel +12%
• Michael Page -1%
16% of Group
Gross Profit
by Geography
UK second consecutive quarter of growthStrongest growth in Page Personnel
13
£m Period 2018 2017Reported
%
Gross Profit
Q4 33.5 32.8 +2.1%
FY 138.4 140.8 -1.7%
Headcount 1,436 1,407 +2.1%
Q4 18
Headline Numbers Financial Review Regional Review Summary
• US +32%, Canada +20%
• Boston, Houston and Los Angeles standout performances
• Latin America +28%: Brazil +25%; Mexico +30%
• All other countries in Latin America grew in excess of 20%
14
Americas was our fastest growing regionRecord quarter for Latin America
£m Period 2018 2017Reported
%
Constant
%
Gross Profit
Q4 32.0 25.2 +27.0% +29.2%
FY 121.1 101.3 +19.5% +27.3%
Headcount 1,328 1,094 +21.4%
USA53%
Brazil13%
Mexico13%
Canada6%
Rest of Latam15%
15% of Group
Gross Profit
by Geography
Summary
Q4 18
Headline Numbers Financial Review Regional Review Summary
16
A record Quarter and Year for the GroupAll four regions delivered growth
2019 Outlook
Expect 2018 Operating Profit to be in line with Consensus
Strong net cash position of c. £96m
Record fee earner and total headcount
Continued investment in Large, High Potential markets
20 countries delivered YoY growth of over 20%
Group Gross Profit growth rate of +15.4%
Appendix
Q4 18
Headline Numbers Financial Review Regional Review Summary
18
Our business model
Q4 18
Headline Numbers Financial Review Regional Review Summary
19
Delivering on our global diversification strategy
A growing international business
61%
39%
76%
24%
84%
16%
FY 2007 FY 2013 Q4 2018
Gross Profit
InternationalUK
Q4 18
Headline Numbers Financial Review Regional Review Summary
20
70%
88%
67%
88%
30%
12%
33%
12%
EMEA Asia Pacific UK Americas
Temp Perm
84%
58%
16%
42%
Michael Page Page Personnel
Geography Brands
Significant variations in recruitment mix
Q4 18
Headline Numbers Financial Review Regional Review Summary
1,174
1,657 1,657 1,466 1,444
1,708 2,075
2,763
3,837 3,654
2,515
3,273
3,797 3,624 3,810
4,278 4,484
4,711
5,497
6,116
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1990-99 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Fe
e E
arn
er
He
ad
co
un
t
AMERICAS
ASIA
PACIFIC
EMEA
21
1985-1990 1990-19992000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Portugal
(2000)
Switzerland
(2001)
Belgium
(2002)
Sweden
(2002)
Poland S Africa
Ireland
UAE
Austria
Turkey
Luxembourg
Morocco
ThailandIndonesiaTaiwanIndia
Malaysia
New
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)
EMEA
APAC
UK
Americas
Argentina
UKASIA
PACIFICEMEA AMERICAS
Notable fee earner and international growth
2018
Vietnam
Q4 18
Headline Numbers Financial Review Regional Review Summary
22
0
1000
2000
3000
4000
5000
6000
7000
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
He
ad
cou
nt
Fee Earner Support Staff
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Fee earner investment and support staff
Q4 18
Headline Numbers Financial Review Regional Review Summary
23
2016 2017 2018
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
EMEA +10.3% +13.6% +10.4% +12.4% +14.8% +13.2% +12.6% +19.3% +18.2% +18.6% +20.9% +13.9%
Asia Pacific -2.0% -3.3% -4.7% +1.7% +3.9% +6.8% +13.9% +14.9% +13.8% +18.4% +27.7% +22.0%
– Asia -1.5% -6.9% -7.9% -0.5% +3.6% +10.2% +21.9% +20.8% +17.8% +21.2% +32.2% +21.2%
– Australasia -3.0% +6.6% +3.9% +8.1% +4.7% -1.5% -4.4% +0.7% +4.3% +10.6% +15.7% +25.0%
UK +0.0% -2.3% -4.7% -6.7% -0.1% -4.5% -7.6% -2.8% -7.1% -1.9% +0.8% +2.1%
Americas -0.6% -1.1% -2.0% +0.9% +15.2% +13.8% +18.4% +18.8% +20.4% +29.2% +30.1% +29.2%
– North America +9.2% -1.9% -10.8% -8.4% +12.5% +14.6% +26.5% +18.7% +16.4% +27.0% +27.2% +30.3%
– Latin America -9.8% -0.1% +9.6% +14.3% +19.2% +12.8% +9.1% +19.0% +25.7% +32.2% +33.9% +27.7%
Group Total +3.6% +3.7% +1.3% +3.8% +9.1% +7.7% +8.8% +13.8% +12.3% +16.0% +19.7% +15.4%
Year-on-Year Gross Profit Rates
Q4 18
Headline Numbers Financial Review Regional Review Summary
24
Contacts
Jeremy Tatham – Group Financial Controller
Tel: +44 (0) 1932 264 143
Email: [email protected]
Web: https://www.page.com/investors
Date Event
6 March 2019 FY 2018 Results
10 April 2019 Q1 2019 Trading Update
Contacts and Calendar
Q4 18
Headline Numbers Financial Review Regional Review Summary
25
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