First Quarter 2016 Interim Management Statement · Trading Performance Reported (£m) Constant 2016...
Transcript of First Quarter 2016 Interim Management Statement · Trading Performance Reported (£m) Constant 2016...
First Quarter 2016 Interim Management Statement
Agenda
Financial Review
Regional Review
Outlook
Financial Review
Trading Performance
Reported (£m) Constant
2016 2015 % %
Q1 2016 vs Q1 2015 142.4 135.7 +4.9% +3.6%
• Gross profit growth of 3.6% in constant currencies
• Favourable foreign exchange movements in some currencies, mainly the Euro, led to higher growth in
reported rates of 4.9%
• Proposed final dividend of 7.9 pence per share, making total 2015 ordinary of 11.5p, plus special of 16p
• Financial position: c. £89m of net cash
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Permanent vs Temporary – Year-on-Year Gross Profit
Reported (£m) Constant
Q1 2016 2015 % %
Permanent 107.9 105.1 +2.7% +1.6%
Temporary 34.5 30.6 +12.8% +10.6%
Ratio (Perm : Temp) 76:24 77:23
• Perm : Temp ratio now 76:24
• Slower growth in permanent reflects current economic conditions in the majority of our regions
• Michael Page (Perm : Temp of 83:17) +2%
• Page Personnel (Perm : Temp of 59:41) +9%
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Discipline Overview – Year-on-Year Gross Profit
Reported (£m) Constant
Q1 % of
Group 2016 2015 % %
Finance & Accounting 40% 56.7 53.9 +5.2% +4.0%
Legal, Technology, HR, Secretarial
and Healthcare 22% 31.3 27.8 +12.6% +10.9%
Engineering, Property &
Construction, Procurement &
Supply Chain
19% 26.9 26.5 +1.2% -0.2%
Marketing, Sales and Retail 19% 27.5 27.5 +0.2% -0.8%
Group Total 100% 142.4 135.7 +4.9% +3.6%
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Headcount
Q1 2016 Q4 2015 Movement %
Fee earners 4,496 4,484 12 0.3%
Support staff 1,381 1,351 30 2.2%
Total headcount 5,877 5,835 42 0.7%
Ratio 77:23 77:23
• Fee earner headcount responds to trading conditions, +60 in EMEA, -49 in the UK
• Support staff increase temporary as we transition into our new European Shared Service Centre
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Headcount and Reported Gross Profit
Total headcount increased 0.7% vs. Q4 2015 to 5,877 (Q4 2015: 5,835)
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Regional Review
Q1 Regional Overview - Year-on-Year Gross Profit
Reported (£m) Constant
Q1 % of
Group 2016 2015 % %
EMEA 43% 61.7 54.1 +14.1% +10.3%
UK 26% 36.5 36.5 +0.0% +0.0%
Asia Pacific 18% 25.9 25.8 +0.5% -2.0%
Americas 13% 18.3 19.3 -5.3% -0.6%
Group Total 100% 142.4 135.7 +4.9% +3.6%
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EMEA (43% of the Group) - Year-on-Year Gross Profit
Reported (£m) Constant
2016 2015 % %
Q1 2016 vs Q1 2015 61.7 54.1 +14.1% +10.3%
Headcount at 31 March 2016: 2,380 (31 December 2015: 2,295)
• Michael Page (57% of EMEA) +8%, Page Personnel (43% of EMEA) +13%
• France (13% of Group) +2%
- Michael Page (37% of France) -2%
- Page Personnel (63% of France) +5%
• Germany (6% of Group) +6%
- Michael Page (66% of Germany) +2%
- Page Personnel (34% of Germany) +17%
• Strong growth in Benelux (+32%) and a record quarter for Southern Europe (+20%)
• Record performances from Belgium, Poland, Sweden and Turkey
• Middle East and Africa combined, declined 15%, Middle East (-28%), Africa (+18%)
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United Kingdom (26% of the Group) - Year-on-Year Gross Profit
• Michael Page (78% of the UK) -3%
• Page Personnel (22% of the UK) +9%
• Temporary recruitment (+6%) more robust than permanent (-3%)
• Continued excellent result in our Legal discipline (+23%)
• Private sector (87% of the UK) flat
• Public sector (13% of the UK) -2%
Reported (£m)
2016 2015 %
Q1 2016 vs Q1 2015 36.5 36.5 +0.0%
Headcount at 31 March 2016: 1,472 (31 December 2015: 1,516)
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Asia Pacific (18% of the Group) - Year-on-Year Gross Profit
• Asia (13% of Group and 72% of Asia Pacific) -1%
• Greater China (57% of Asia) -5%
• Improved performance as the quarter progressed
• Strong performances from Indonesia and Malaysia, combined up 17%
• Australasia (5% of Group and 28% of Asia Pacific) -3%
• Sequential improvement on Q4 2015 of 5%
• Australia -4%
• Leadership and management changes starting to have a positive impact
Reported (£m) Constant
2016 2015 % %
Q1 2016 vs Q1 2015 25.9 25.8 +0.5% -2.0%
Headcount at 31 March 2016: 1,200 (31 December 2015: 1,180)
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Americas (13% of the Group) - Year-on-Year Gross Profit
• North America (8% of the Group and 59% of Americas) +9%
• US +12%, stock market uncertainty at the start of the year impacted New York Financial Services
business
• Strong performances from Procurement & Supply Chain, Property & Construction and Technology
• Latin America (5% of the Group and 41% of Americas) -10%
• Brazil (35% of Latin America) -31%, continues to be impacted by adverse macro-economic factors
• Latin America ex-Brazil (65% of Latin America) +11%
Reported (£m) Constant
2016 2015 % %
Q1 2016 vs Q1 2015 18.3 19.3 -5.3% -0.6%
Headcount at 31 March 2016: 825 (31 December 2015: 844)
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Outlook
Outlook
Summary
• Trading conditions anticipated to remain challenging in the short term
- Uncertainty in the UK due to EU Referendum, but job indicators remain strong
- Brazil and the Middle East expected to remain challenging
- Asia will continue to be impacted by confidence levels in Greater China
- Europe and the US look positive
• Ongoing focus is on conversion rates and productivity
- Will continue to add fee earners where growth opportunities exist
• Continue to focus on driving profitable growth, whilst remaining able to
respond quickly to any changes in market conditions
Outlook
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Cautionary Statement
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 Michael Page International 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.
Michael Page International 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 Michael Page International 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 Michael Page International 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.
Year-on-Year Gross Profit Growth Rates
2014 2015 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
EMEA +5.7% +5.1% +11.2% +12.5% +12.1% +11.4% +13.0% +10.6% +10.3%
UK +8.1% +11.1% +13.7% +11.0% +11.3% +12.8% +12.5% +2.4% +0.0%
Asia Pacific +1.3% +14.2% +11.1% +10.8% +10.8% +5.6% +5.3% -1.3% -2.0%
-Asia +8.0% +25.0% +16.5% +15.0% +14.1% +8.8% +9.2% +2.4% -1.5%
- Australasia -9.5% -2.9% +1.7% +2.7% +3.9% -1.8% -2.3% -9.3% -3.0%
Americas +16.2% +8.5% +9.6% +20.2% +7.1% +11.5% +5.3% +5.7% -0.6%
- North America +30.5% +15.5% +22.3% +20.3% +10.6% +21.1% +18.0% +23.5% +9.2%
-Latin America +7.4% +4.2% +1.5% +19.9% +4.2% +3.8% -4.8% -8.9% -9.8%
Group Total +6.8% +8.9% +11.6% +12.9% +10.9% +10.6% +10.0% +5.5% +3.6%