REG - Michael Page Intl - Final Results <Origin Href="QuoteRef">MPI.L</Origin> - Part 2
10/03/2016 07:10
- Part 2: For the preceding part double click ID:nRSJ6189Ra
Benefittrust Reserve earnings Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2014 3,208 71,739 932 (50,022) 20,415 162,215 208,487
Currency translation differences - - - - (3,949) - (3,949)
Net expense recognised directly in equity - - - - (3,949) - (3,949)
Profit for the year ended 31 December 2014 - - - - - 59,331 59,331
Total comprehensive (loss)/income for the year - - - - (3,949) 59,331 55,382
Purchase of shares held in employee benefit trust - - - (25,445) - - (25,445)
Exercise of share plans 11 3,476 - - - 467 3,954
Transfer from reserve for shares held in the employee benefit trust - - - 3,060 - (3,060) -
Credit in respect of share schemes - - - - - 7,069 7,069
Debit in respect of tax on share schemes - - - - - (518) (518)
Dividends - - - - - (32,706) (32,706)
11 3,476 - (22,385) - (28,748) (47,646)
Balance at 31 December 2014 3,219 75,215 932 (72,407) 16,466 192,798 216,223
Balance at 1 January 2015 3,219 75,215 932 (72,407) 16,466 192,798 216,223
Currency translation differences - - - - (5,825) - (5,825)
Net expense recognised directly in equity - - - - (5,825) - (5,825)
Loss on hedging instruments - - - - - (173) (173)
Profit for the year ended 31 December 2015 - - - - - 66,208 66,208
Total comprehensive (loss)/income for the year - - - - (5,825) 66,035 60,210
Exercise of share plans 39 15,053 - - - 7,770 22,862
Transfer from reserve for shares held in the employee benefit trust - - - 11,042 - (11,042) -
Credit in respect of share schemes - - - - - 6,801 6,801
Credit in respect of tax on share schemes - - - - - 728 728
Dividends - - - - - (85,065) (85,065)
39 15,053 - 11,042 - (80,808) (54,674)
Balance at 31 December 2015 3,258 90,268 932 (61,365) 10,641 178,025 221,759
Consolidated Statement of Cash Flows
For the year ended 31 December 2015
2015 2014
Note £'000 £'000
Cash generated from underlying operations 13 101,603 88,092
Exceptional items (note 4) - (1,098)
Cash generated from operations 101,603 86,994
Income tax paid (19,091) (15,357)
Net cash from operating activities 82,512 71,637
Cash flows from investing activities
Purchases of property, plant and equipment (9,161) (6,231)
Purchases of intangible assets (6,015) (6,468)
Proceeds from the sale of property, plant and equipment, and computer software 374 824
Interest received 1,116 505
Net cash used in investing activities (13,686) (11,370)
Cash flows from financing activities
Dividends paid (85,065) (32,706)
Interest paid (269) -
Issue of own shares for the exercise of options 22,619 3,954
Purchase of shares into the employee benefit trust - (25,445)
Net cash used in financing activities (62,715) (54,197)
Net increase in cash and cash equivalents 6,111 6,070
Cash and cash equivalents at the beginning of the year 90,012 85,394
Exchange loss on cash and cash equivalents (1,105) (1,452)
Cash and cash equivalents at the end of the year 14 95,018 90,012
Notes to the consolidated preliminary results
For the year ended 31 December 2015
1. Corporate information
Michael Page International plc (the "Company") is a limited liability company
incorporated in Great Britain and domiciled within the United Kingdom whose
shares are publicly traded. The consolidated preliminary results of the
Company as at and for the year ended 31 December 2015 comprise the Company and
its subsidiaries (together referred to as the "Group").
The consolidated preliminary results of the Group for the year ended 31
December 2015 were approved by the directors on 9 March 2016. The Annual
General Meeting of Michael Page International plc will be held at the
registered office, Page House, The Bourne Business Park, 1 Dashwood Lang Road,
Addlestone, Surrey, KT15 2QW on 9 June 2016 at 9.30am.
2. Basis of preparation and accounting policies
Basis of preparation
Whilst the information included in this preliminary announcement has been
prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards ("IFRSs") as adopted for use in
the European Union and as issued by the International Accounting Standards
Board, this announcement does not itself contain sufficient information to
comply with IFRSs.
The consolidated financial statements comprise the financial statements of the
Group as at 31 December 2015 and are presented in UK Sterling and all values
are rounded to the nearest thousand (UK £'000), except when otherwise
indicated.
The Group's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Management
Report. The Management Report also includes a summary of the Group's financial
position, its cash flows and its borrowing facilities.
The Directors believe the Group is well placed to manage its business risks
successfully, despite the current uncertain economic outlook. The Group's
forecasts and projections, taking account of reasonably possible changes in
trading performance, show that the Group should be able to operate within the
level of its current committed facilities.
After making enquiries, the Directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the Annual Report and Accounts.
Nature of financial information
The financial information contained within this preliminary announcement for
the 12 months to 31 December 2015 and 12 months to 31 December 2014 do not
comprise statutory financial statements for the purpose of the Companies Act
2006, but are derived from those statements. The statutory accounts for
Michael Page International plc for the 12 months to 31 December 2014 have been
filed with the Registrar of Companies and those for the 12 months to 31
December 2015 will be filed following the Company's Annual General Meeting.
The auditors' reports on the accounts for both the 12 months to 31 December
2015 and 12 months to 31 December 2014 were unqualified and did not include a
statement under Section 498 (2) or (3) of the Companies Act 2006. The Annual
Report and Accounts will be available for shareholders in April 2016.
Significant accounting policies
The accounting policies applied by the Group in these consolidated preliminary
results are the same as those followed in the preparation of the Group's
annual consolidated financial statements for the year ending 31 December
2014.
The Group has not early adopted any other standard, interpretation or
amendment that has been issued but is not yet effective.
3. Segment reporting
All revenues disclosed are derived from external customers.
The accounting policies of the reportable segments are the same as the Group's
accounting policies. Segment operating profit represents the profit earned by
each segment including allocation of central administration costs. This is the
measure reported to the Group's Chief Executive Officer, the chief operating
decision maker, for the purpose of resource allocation and assessment of
segment performance.
(a) Revenue, gross profit and operating profit by reportable segment
Revenue Gross Profit
2015 2014 2015 2014
£'000 £'000 £'000 £'000
EMEA 421,310 419,667 216,987 212,042
United Kingdom 337,673 325,708 151,581 138,361
Asia Pacific Australia and New Zealand 95,835 110,025 30,077 34,400
Asia 95,468 83,454 79,033 71,139
Total 191,303 193,479 109,110 105,539
Americas 114,659 108,033 78,427 76,875
1,064,945 1,046,887 556,105 532,817
Operating Profit
Before After
Exceptional Exceptional Exceptional
Items Items Items
2015 2014 2014 2014
£'000 £'000 £'000 £'000
EMEA 31,889 30,120 1,631 31,751
United Kingdom 29,235 24,066 - 24,066
Asia Pacific Australia and New Zealand 4,696 4,675 - 4,675
Asia 18,020 15,301 - 15,301
Total 22,716 19,976 - 19,976
Americas 6,231 4,299 - 4,299
Operating profit 90,071 78,461 1,631 80,092
Financial income/(expense) 626 (29) 298 269
Profit before tax 90,697 78,432 1,929 80,361
The above analysis by destination is not materially different to analysis by
origin.
The analysis below is of the carrying amount of reportable segment assets,
liabilities and non-current assets. Segment assets and liabilities include
items directly attributable to a segment as well as those that can be
allocated on a reasonable basis. The individual reportable segments exclude
income tax assets and liabilities. Non-current assets include property, plant
and equipment, computer software, goodwill and other intangibles.
(b) Segment assets, liabilities and non-current assets by reportable
segment
Total Assets Total Liabilities
2015 2014 2015 2014
£'000 £'000 £'000 £'000
EMEA 143,621 135,374 74,687 68,947
United Kingdom 128,699 118,042 40,499 40,608
Asia Pacific Australia and New Zealand 21,953 27,265 8,008 9,079
Asia 48,213 43,457 12,616 11,301
Total 70,166 70,722 20,624 20,380
Americas 41,689 42,756 12,682 13,305
Segment assets/liabilities 384,175 366,894 148,492 143,240
Income tax 8,814 7,479 22,738 14,910
392,989 374,373 171,230 158,150
Property, Plant & Equipment Intangible Assets
2015 2014 2015 2014
£'000 £'000 £'000 £'000
EMEA 6,479 6,142 2,449 457
United Kingdom 7,204 7,175 33,187 37,134
Asia Pacific Australia and New Zealand 1,255 1,643 73 134
Asia 1,364 1,643 43 60
Total 2,619 3,286 116 194
Americas 5,109 5,205 514 761
21,411 21,808 36,266 38,546
(c) Revenue and gross profit by discipline
Revenue Gross Profit
2015 2014 2015 2014
£'000 £'000 £'000 £'000
Finance and Accounting 468,364 465,250 220,082 211,366
Legal, Technology, HR, Secretarial and Other 253,456 240,105 119,842 107,210
Engineering, Property & Construction, Procurement & Supply Chain 190,547 193,922 106,321 107,729
Marketing, Sales and Retail 152,578 147,610 109,860 106,512
1,064,945 1,046,887 556,105 532,817
(d) Revenue and gross profit generated from permanent and temporary
placements
Revenue Gross Profit
2015 2014 2015 2014
£'000 £'000 £'000 £'000
Permanent 431,292 417,401 424,015 406,414
Temporary 633,653 629,486 132,090 126,403
1,064,945 1,046,887 556,105 532,817
4. Exceptional items - Prior Year
In October 2013, Page Personnel France (PPF) received notice from the
Competent Authorities of the UK and France of their decision regarding a
transfer pricing case that had arisen as a result of a tax audit in March
2008. The decision, which was unexpected, increased the profit generated by
PPF, which, as per the mandatory profit share or "participation aux résultats
de l'entreprise" that is particular to France, drove a requirement to pay
increased employee profit share, both to employees of PPF and also to the
temporary workers placed by that company. As a result, the Group took in 2013
an exceptional charge of £2.5m relating to prior periods, and £0.6m that was
included within operating profits from trading activities.
In December 2014, PPF received notice from the French tax authorities that
they would not be seeking to make any further transfer pricing adjustments as
a result of their audit of the tax years 2011 and 2012. In addition, as no
assessment was raised within the statutory timeframe, there would be no
adjustment for the 2010 tax year. Accordingly, in 2014, the Group recorded
£1.6m relating to the reversal of amounts that were previously provided as an
exceptional charge and a further £0.6m that was included within operating
profit. There was also a release of £0.3m of exceptional interest and £0.8m of
income tax relating to this exceptional item.
There are no exceptional items in the current year.
5. Financial income / (expenses)
2015 2014
£'000 £'000
Financial income
Bank interest receivable 1,116 488
1,116 488
Financial expenses
Bank interest payable (490) (517)
Exceptional interest - 298
(490) (219)
6. Taxation
The tax charge for the year was £24.5m (2014: £21.0m). There being no
exceptional items in 2015, this represented an effective tax rate of 27.0%
both before and after exceptional items (2014: 26.2% after exceptional items
and 27.9% before exceptional items). The rate is higher than the effective UK
Corporation Tax rate for the year of 20.25% (2014: 21.5%) principally due to
the impact of disallowable expenditure and higher tax rates in overseas
countries which was partially offset by the recognition of tax losses.
7. Dividends
2015 2014
£'000 £'000
Amounts recognised as distributions to equity holders in the year:
Final dividend - 31 December 2014 of 7.58p per ordinary share (2013: 7.25p) 23,702 22,220
Interim dividend - 31 December 2015 of 3.60p per ordinary share (2014: 3.42p) 11,271 10,486
Special dividend - 31 December 2015 of 16.0p per ordinary share (2014: nil) 50,092 -
85,065 32,706
Amounts proposed as distributions to equity holders in the year:
Proposed final dividend for the year ended 31 December 2015 of 7.90p per ordinary share (2014: 7.58p) 24,747 23,232
The proposed final dividend had not been approved by the Board at 31 December
2015 and therefore has not been included as a liability. The comparative final
dividend at 31 December 2014 was also not recognised as a liability in the
prior year.
The proposed final dividend of 7.90p (2014: 7.58p) per ordinary share will be
paid on 20 June 2016 to shareholders on the register at the close of business
on 20 May 2016 subject to approval by shareholders.
8. Share-based payments
In accordance with IFRS 2 "Share-based Payment", a charge of £7.6m has been
recognised for share options and other share-based payment arrangements
(including social charges), (2014: £5.8m).
9. Earnings per share
The calculation of the basic and diluted earnings per share is based on the
following data:
Earnings 2015 2014
Earnings for basic and diluted earnings per share (£'000) 66,208 59,331
Exceptional items (£'000) (note 4) - (2,762)
Earnings for basic and diluted earnings per share before exceptional items (£'000) 66,208 56,569
Number of shares
Weighted average number of shares for basic earnings per share ('000) 311,436 308,020
Dilution effect of share plans ('000) 2,368 2,303
Diluted weighted average number of shares for diluted earnings per share ('000) 313,804 310,323
Basic earnings per share (pence) 21.3 19.3
Diluted earnings per share (pence) 21.1 19.1
Basic earnings per share before exceptional items (pence) 21.3 18.4
Diluted earnings per share before exceptional items (pence) 21.1 18.2
The above results all relate to continuing operations.
10. Property, plant and equipment
Acquisitions and disposals
During the year ended 31 December 2015 the Group acquired property, plant and
equipment with a cost of £9.2m (2014: £6.2m).
Property, plant and equipment with a carrying amount of £1.1m were disposed of
during the year ended 31 December 2015 (2014: £1.1m), resulting in a loss on
disposal of £0.7m (2014: loss of £0.3m).
11. Trade and other receivables
2015 2014
£'000 £'000
Current
Trade receivables 169,012 161,878
Less provision for impairment of receivables (5,635) (5,818)
Trade receivables 163,377 156,060
Other receivables 9,041 6,572
Prepayments and accrued income 42,314 40,410
214,732 203,042
Non-current
Prepayments 2,693 1,842
12. Trade and other payables
2015 2014
£'000 £'000
Current
Trade payables 15,659 10,007
Other tax and social security 44,181 42,183
Other payables 10,813 9,341
Accruals 70,543 73,666
Deferred income 739 691
141,935 135,888
Non-current
Deferred income 5,092 4,456
Other tax and social security 298 287
5,390 4,743
13. Cash flows from operating activities
2015 2014
£'000 £'000
Profit before tax 90,697 80,361
Exceptional items (note 4) - (1,929)
Profit before tax and exceptional items 90,697 78,432
Depreciation and amortisation charges 15,417 17,896
Loss on sale of property, plant and equipment, and computer software 690 294
Share scheme charges 6,869 7,120
Net finance costs (626) (269)
Operating cash flow before changes in working capital and exceptional items 113,047 103,473
Increase in receivables (20,248) (22,212)
Increase in payables 8,804 6,831
Cash generated from underlying operations 101,603 88,092
14. Cash and cash equivalents
2015 2014
£'000 £'000
Cash at bank and in hand 76,957 84,941
Short-term deposits 18,061 5,071
Cash and cash equivalents in the statement of cash flows 95,018 90,012
The Group operates a multi-currency notional cash pool. Currently the main
Eurozone subsidiaries and the UK-based Group Treasury subsidiary participate
in this cash pool, although it is the Group's intention to extend the scope of
the participation to other Group companies going forward. The structure
facilitates interest and balance compensation of cash and bank overdrafts.
15. Publication of Annual Report and Accounts
This preliminary statement is not being posted to shareholders. The Annual
Report and Accounts will be posted to shareholders in due course and will be
delivered to the Registrar of Companies following the Annual General Meeting
of the Company.
Copies of the Annual Report and Accounts can be downloaded from the Company's
website
ttp://www.pagegroup.co.uk/investors/reports-and-presentations/annual-and-interim-reports/2015.aspx
16. Annual General Meeting
The Annual General Meeting of Michael Page International plc will be held at
Page House, The Bourne Business Park, 1 Dashwood Lang Road, Addlestone,
Surrey, KT15 2QW on 9 June 2016 at 9.30am.
Responsibility statement of the directors on the annual report
The responsibility statement below has been prepared in connection with the
company's full annual report for the year ending 31 December 2015. Certain
parts of the annual report are not included within this announcement.
We confirm that, to the best of our knowledge:-
a) the financial statements, prepared in accordance with IFRSs as adopted by
the European Union, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the company and the undertakings
included in the consolidation taken as a whole; and
b) the management report, which is incorporated into the directors' report,
includes a fair review of the development and performance of the business and
the position of the company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal risks and
uncertainties they face.
On behalf of the Board
S Ingham K Stagg
Chief Executive Officer Chief Financial Officer
9 March 2016 9 March 2016
This information is provided by RNS
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