REG - PageGroup plc - Final Results <Origin Href="QuoteRef">PAGE.L</Origin> - Part 2
08/03/2017 07:07
- Part 2: For the preceding part double click ID:nRSH8054Ya
Exercise of share plans 39 15,053 - - - 7,770 22,862
Reserve transfer when shares held in the employee benefit trust vest - - - 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 and 1 January 2016 3,258 90,268 932 (61,365) 10,641 178,025 221,759
Currency translation differences - - - - 22,105 - 22,105
Net income recognised directly in equity - - - - 22,105 - 22,105
Loss on hedging instruments - - - - - (2,468) (2,468)
Profit for the year ended 31 December 2016 - - - - - 72,096 72,096
Total comprehensive income for the year - - - - 22,105 69,628 91,733
Purchase of shares held in employee benefit trust - - - (15,058) - - (15,058)
Exercise of share plans 1 190 - - - 173 364
Reserve transfer when shares held in the employee benefit trust vest - - - 3,482 - (3,482) -
Credit in respect of share schemes - - - - - 4,442 4,442
Debit in respect of tax on share schemes - - - - - (368) (368)
Dividends - - - - - (56,311) (56,311)
1 190 - (11,576) - (55,546) (66,931)
Balance at 31 December 2016 3,259 90,458 932 (72,941) 32,746 192,107 246,561
Consolidated Statement of Cash Flows
For the year ended 31 December 2016
2016 2015
Note £'000 £'000
Cash generated from operations 12 121,319 101,603
Income tax paid (32,499) (19,091)
Net cash from operating activities 88,820 82,512
Cash flows from investing activities
Purchases of property, plant and equipment (14,111) (9,161)
Purchases of intangible assets (11,153) (6,015)
Proceeds from the sale of property, plant and equipment, and computer software 1,890 374
Interest received 117 1,116
Net cash used in investing activities (23,257) (13,686)
Cash flows from financing activities
Dividends paid (56,311) (85,065)
Interest paid (460) (269)
Issue of own shares for the exercise of options 364 22,619
Purchase of shares into the employee benefit trust (15,058) -
Net cash used in financing activities (71,465) (62,715)
Net (decrease)/increase in cash and cash equivalents (5,902) 6,111
Cash and cash equivalents at the beginning of the year 95,018 90,012
Exchange gain/(loss) on cash and cash equivalents 3,680 (1,105)
Cash and cash equivalents at the end of the year 13 92,796 95,018
Notes to the consolidated preliminary results
For the year ended 31 December 2016
1. Corporate information
PageGroup 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 2016 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 2016 were approved by the directors on 7 March 2017. The Annual
General Meeting of PageGroup plc will be held at the registered office, Page
House, The Bourne Business Park, 1 Dashwood Lang Road, Addlestone, Surrey,
KT15 2QW on 8 June 2017 at 9.30am.
2. 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 2016 and are presented in UK Sterling and all values
are rounded to the nearest thousand (UK £'000), except when otherwise
indicated.
Going concern
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. 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, a period of not less than 12 months from
the date of this report. 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 2016 and 12 months to 31 December 2015 do not
comprise statutory financial statements for the purpose of the Companies Act
2006, but are derived from those statements. The statutory accounts for
PageGroup plc for the 12 months to 31 December 2015 have been filed with the
Registrar of Companies and those for the 12 months to 31 December 2016 will be
filed following the Company's Annual General Meeting.
The auditors' reports on the accounts for both the 12 months to 31 December
2016 and 12 months to 31 December 2015 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
2017.
New accounting standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual consolidated financial statements for the
year ended 31 December 2015.
The Group has not early adopted any 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 Board, 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
2016 2015 2016 2015
£'000 £'000 £'000 £'000
EMEA 538,403 421,310 271,863 216,987
United Kingdom 324,548 337,673 146,313 151,581
Asia Pacific Australia and New Zealand 103,979 95,835 35,085 30,077
Asia 105,692 95,468 84,644 79,033
Total 209,671 191,303 119,729 109,110
Americas 123,503 114,659 83,129 78,427
1,196,125 1,064,945 621,034 556,105
Operating Profit
2016 2015
£'000 £'000
EMEA 51,685 31,889
United Kingdom 24,153 29,235
Asia Pacific Australia and New Zealand 4,592 4,696
Asia 16,135 18,020
Total 20,727 22,716
Americas 4,387 6,231
Operating profit 100,952 90,071
Financial (expense)/income (956) 626
Profit before tax 99,996 90,697
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
current 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
2016 2015 2016 2015
£'000 £'000 £'000 £'000
EMEA 187,257 143,621 96,270 74,687
United Kingdom 119,036 128,699 43,306 40,499
Asia Pacific Australia and New Zealand 24,869 21,953 10,526 8,008
Asia 56,182 48,213 16,462 12,616
Total 81,051 70,166 26,988 20,624
Americas 56,311 41,689 18,869 12,682
Segment assets/liabilities 443,655 384,175 185,433 148,492
Income tax 12,743 8,814 24,404 22,738
456,398 392,989 209,837 171,230
Property, Plant & Equipment Intangible Assets
2016 2015 2016 2015
£'000 £'000 £'000 £'000
EMEA 10,707 6,479 3,862 2,449
United Kingdom 7,142 7,204 33,278 33,187
Asia Pacific Australia and New Zealand 1,376 1,255 22 73
Asia 3,053 1,364 31 43
Total 4,429 2,619 53 116
Americas 7,183 5,109 690 514
29,461 21,411 37,883 36,266
The below analyses in notes (c) revenue and gross profit by discipline (being
the professions of candidates placed) and (d) revenue and gross profit
generated from permanent and temporary placements have been included as
additional disclosure over and above the requirements of IFRS 8 "Operating
Segments".
(c) Revenue and gross profit by discipline
Revenue Gross Profit
2016 2015 2016 2015
£'000 £'000 £'000 £'000
Accounting and Financial Services 511,449 468,364 238,366 220,082
Legal, Technology, HR, Secretarial and Other 294,972 253,456 138,830 119,842
Engineering, Property & Construction, Procurement & Supply Chain 227,908 190,547 125,545 106,321
Marketing, Sales and Retail 161,796 152,578 118,293 109,860
1,196,125 1,064,945 621,034 556,105
(d) Revenue and gross profit generated from permanent and temporary
placements
Revenue Gross Profit
2016 2015 2016 2015
£'000 £'000 £'000 £'000
Permanent 476,321 431,292 469,960 424,015
Temporary 719,804 633,653 151,074 132,090
1,196,125 1,064,945 621,034 556,105
4. Financial income / (expenses)
2016 2015
£'000 £'000
Financial income
Interest receivable 117 1,116
Financial expenses
Interest payable (465) (490)
Interest on discounting of French construction participation tax (608) -
(1,073) (490)
5. Taxation
Tax on profit was £27.9m (2015: £24.5m). This represented an effective tax
rate of 27.9% (2015: 27.0%). The rate is higher than the effective UK
Corporation Tax rate for the year of 20.0% (2015: 20.25%) due to profits and
disallowable items of expenditure being generated in countries where
corporation tax rates are higher than in the UK.
6. Dividends
2016 2015
£'000 £'000
Amounts recognised as distributions to equity holders in the year:
Final dividend - 31 December 2015 of 7.90p per ordinary share (2014: 7.58p) 24,564 23,702
Interim dividend - 31 December 2016 of 3.75p per ordinary share (2015: 3.60p) 11,660 11,271
Special dividend - 31 December 2016 of 6.46p per ordinary share (2015: 16.0p) 20,087 50,092
56,311 85,065
Amounts proposed as distributions to equity holders in the year:
Proposed final dividend - 31 December 2016 of 8.23p per ordinary share (2015: 7.90p) 25,599 24,747
The proposed final dividend had not been approved by the Board at 31 December
2016 and therefore has not been included as a liability. The comparative final
dividend at 31 December 2015 was also not recognised as a liability in the
prior year.
The proposed final dividend of 8.23p (2015: 7.90p) per ordinary share will be
paid on 19 June 2017 to shareholders on the register at the close of business
on 19 May 2017.
7. Share-based payments
In accordance with IFRS 2 "Share-based Payment", a charge of £4.2m has been
recognised for share options and other share-based payment arrangements
(including social charges) (2015: £7.6m).
8. Earnings per ordinary share
The calculation of the basic and diluted earnings per share is based on the
following data:
Earnings 2016 2015
Earnings for basic and diluted earnings per share (£'000) 72,096 66,208
Number of shares
Weighted average number of shares used for basic earnings per share ('000) 311,534 311,436
Dilution effect of share plans ('000) 802 2,368
Diluted weighted average number of shares used for diluted earnings per share ('000) 312,336 313,804
Basic earnings per share (pence) 23.1 21.3
Diluted earnings per share (pence) 23.1 21.1
The above results all relate to continuing operations.
9. Property, plant and equipment
Acquisitions and disposals
During the year ended 31 December 2016 the Group acquired property, plant and
equipment with a cost of £14.1m (2015: £9.2m). This expenditure related to
fit-out costs in our new European Shared Service Centre, and office moves in
New York, Paris and Tokyo.
Property, plant and equipment with a carrying amount of £1.4m were disposed of
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