REG - PageGroup plc - Full Year Results for the Year Ended 31 Dec 2023
07/03/2024 07:00
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RNS Number : 9061F PageGroup plc 07 March 2024
7 March 2024
Full Year Results for the Year Ended 31 December 2023
Resilient performance in challenging market conditions, restructured cost base, final dividend increased 4.5%
PageGroup plc ("PageGroup"), the specialist professional recruitment company,
announces its full year results for the year ended 31 December 2023.
Financial summary 2023 2022 Change Change
CC*
Revenue £2,010.3m £1,990.3m +1.0% +1.1%
Gross profit £1,007.1m £1,076.3m -6.4% -6.3%
Operating profit £118.8m £196.1m -39.4% -39.4%***
Profit before tax £117.4m £194.4m -39.6%
Basic earnings per share 24.4p 43.7p -44.2%
Diluted earnings per share 24.3p 43.5p -44.1%
Total dividend per share 16.37p 15.67p
(excl. special dividend)
Total dividend per share 32.24p 42.38p
(incl. special dividend)
HIGHLIGHTS*
· Group gross profit down 6.3% to £1,007.1m (2022: £1,076.3m)
· Operating profit of £118.8m (2022: £196.1m)
· Conversion rate** decreased to 11.8% (2022: 18.2%)
· Fee earner headcount decreased by 1,092 (15.7%) vs 2022, total
closing headcount of 7,859
· Gross profit per fee earner at record levels as a result of action on
fee earner headcount
· Strong cash position of £90.1m (2022: £131.5m)
· Total dividends of £100.1m paid during 2023
· Final dividend proposed of 11.24p per share (2022: 10.76p), up 4.5%
*At constant currency - all growth rates in constant currency at prior year
rates unless otherwise stated
**Operating profit as a percentage of gross profit
***Excluding impact of hyperinflation in Argentina
Commenting, Nicholas Kirk, Chief Executive Officer, said:
"We produced a resilient performance in 2023 in challenging market conditions.
Despite the year-on-year decline in gross profit and operating profit, we saw
good activity levels through most of the year, albeit the conversion of final
interviews to accepted offers and therefore gross profit became increasingly
challenging due to ongoing lower levels of candidate and client confidence. We
saw a slower end to 2023 due to macro uncertainty impacting candidate and
client sentiment, which has continued into January and February, albeit they
are two of the smallest months of the year from a trading perspective.
"In response to the tougher trading conditions, we managed our headcount down
from its peak at the end of Q3 2022. Overall for 2023, our fee earner
headcount was down 1,092 or 15.7% and we now have a total headcount of 7,859
(2022: 9,020). As a result of this action on headcount, gross profit per fee
earner, our measure of productivity, was flat on 2022 and remains at record
levels.
"Today the Board has proposed an increase in the final dividend of 4.5% to
11.24 pence per share, reflecting confidence in the continued strategic
progress of the Group, as well as the strength of our Balance Sheet. Combined
with the interim dividend of 5.13p and the special dividend of 15.87p, this
represents a total dividend of 32.24p.
"Looking ahead, macro-economic uncertainty persists. However, we have a highly
diversified and adaptable business model, a strong balance sheet, and our cost
base is under continuous review and can be adjusted rapidly to match market
conditions. We are also seeing the benefits from our investments in innovation
and technology. Customer Connect is supporting productivity and enhancing
customer experience, Page Insights is providing real time data to inform
business decisions for both Page and our customers, and we continue to work
with our partners to deploy AI and automation tools into our working
environment. We made improvements to customer engagement, with our client net
promoter score increasing to 55 in 2023 from 52 in 2022. We also continued to
develop our social impact programmes and as a business, we changed 133,575
lives in 2023. Given these fundamental strengths, we believe we will continue
to perform well in the current challenging markets, and we are confident in
our ability to implement our new strategy driving the long-term profitability
of the Group."
Enquiries:
PageGroup plc +44 (0) 19 3226 4022
Nicholas Kirk, Chief Executive Officer
Kelvin Stagg, Chief Financial Officer
FTI Consulting +44 (0) 20 3727 1340
Richard Mountain / Susanne Yule
The Company will host a conference call and presentation for analysts and
investors at 8:30am today. The live presentation can be viewed by following
the link:
https://www.investis-live.com/pagegroup/65a909599608da1200b5aeca/sdgs
(https://protect-eu.mimecast.com/s/IDJECjqo2CnxwP38FWfkYv?domain=investis-live.com)
Please use the following dial-in numbers to join the conference:
United Kingdom (Local) 020 3936 2999
All other locations +44 20 3936 2999
Please quote the access code 90 08 06 to gain access to the call
The presentation and recording to accompany the call will be available on the
Company's website later today at:
https://www.page.com/presentations/year/2024
(https://www.page.com/presentations/year/2024)
MANAGEMENT REPORT
CAUTIONARY STATEMENT
This Management Report has been prepared solely to provide additional
information to shareholders to assess the Group's strategies and the potential
for those strategies to succeed.
This Management Report contains certain forward-looking statements. These
statements are made by the Directors in good faith based on the information
available to them up to the time of their approval of this report and such
statements should be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any such forward
looking information.
GROUP STRATEGY
Having delivered on our previous vision, namely £1bn of Gross Profit and
£200m of Operating Profit in 2022, it was important to set our new strategy
and vision for the Group. We took input from our customers, people and
investors, as well as the demographic and technology trends that are shaping
our industry. The new strategy will take the Group through to 2030 and has
three key strategic goals: Operating Profit of £400m; 1 million lives
changed; and a Net Promoter Score of over 60.
Our operating profit goal is more than double our previous record year in 2022
and is based on targeting gross profit of just under £2bn at a conversion
rate in excess of 20%. We will deliver this by building on our existing
strengths and leveraging our global platforms. We will focus on what we do
best at a city and country level, growing our business in the areas where we
see the greatest potential for growth.
The first pillar of growth is our core business, which we define as Michael
Page and Page Personnel that covers all disciplines except technology. Our
focus in the core business is to build on our previous investment strategy,
strengthening our market leading positions and, in addition, no longer
pursuing more marginal business lines in certain geographies.
Technology recruitment is a scale play for Page, enabling us to build high
volume, high value business. It is a market in which we already have a high
level of experience, as it's our second largest discipline. We will build on
our existing strengths in this area whilst targeting key strategic investment
opportunities. We have collected valuable learnings through our IT
contracting business in Germany, where we are delivering at record levels, and
we will now look to take these learnings elsewhere in the Group, starting in
France and Japan. Our strategic goal is to build a £350m gross profit
business by 2030, with a 20% conversion rate.
We will build our capabilities in Page Executive, where our global offering
has been well received by clients who are keen to look beyond geographic
borders to identify the best leadership talent. Our objective is not to
compete directly with the global executive search firms, but to grow our
reputation in the market that sits just above the Michael Page brand, through
to the lower end of where the global executive search firms operate. Our goal
by 2030 is for Page Executive to be a business generating over £200m of gross
profit, with a conversion rate above the average for the Group.
Our Strategic Customer Solutions team is focused on creating business
partnerships, building out our capabilities and offering to our most
significant customers, to create long-term mutual value. Our Page Outsourcing
brand will play a significant role in this area to respond to evolving client
demand. With our global footprint, combined with our capabilities in delivery
and insights, we are best placed to develop an enhanced client solutions
business. Our goal by 2030 is to deliver a global strategic customers business
with gross profit of £500m, at a conversion rate of 20%.
Since 2020, we have been committed to the goal of changing one million lives
by 2030. By the end of 2023, we had changed just over 500,000 lives. We are
driven to have a positive impact in the communities in which we operate. We
will work to become an industry role model for ESG and we will achieve this by
consciously focusing on the area of Social Impact by capitalising on our
people expertise.
Our third goal is focused on delivering a best-in-class customer experience by
achieving a client Net Promoter Score of 60+. As a cross industry benchmark,
this would see us exceeding what is classed as 'excellent'. This is a critical
measure of how we build deeper, repeat relationships with clients to ensure
our long-term success. In 2022 our score was 52 and this increased to 55 in
2023.
Organic, scalable growth
Our strategy is to grow organically, achieved by drawing upon the skill and
experience of proven PageGroup management, ensuring we have the best and most
qualified home-grown talent in each key role. Our team-based structure and
profit share business model is highly scalable. The small size of our
specialist teams means we can increase headcount rapidly to achieve growth
when market conditions are favourable.
Conversely, when market conditions tighten, these entrepreneurial,
profit-sharing teams reduce in size, largely through natural attrition.
Consequently, our cost base contracts in downturns. Our strategy for organic
growth has served the business well over the 47 years since its inception and
we believe it will continue to do so. We have grown from a small,
single-discipline recruitment company operating in one country to a large
multidiscipline, multinational business, operating in 37 countries.
We have an organic growth structure, investing in existing and new teams,
offices, disciplines and countries, to ensure we maintain a consistent team
and meritocratic culture as we grow. Normally, we find that we gain market
share during downturns, which positions our business for market-leading rates
of growth when the economy improves. Pursuing this approach means that we
carry spare capacity during downturns, which can have a negative effect on
profitability in the short term. A strong balance sheet is, therefore,
essential to support the business at these times.
Talent and skills development
We recognise that it is our people who are at the heart of everything we do,
particularly as an organically grown business, where ensuring we have a talent
pool with experience through economic cycles and across both geographies and
disciplines is critical. Investing in our people is, therefore, a vital
element of our strategy. We seek the highest calibre staff from a diverse
range of backgrounds and then do our very best to retain them through offering
a fulfilling career and an attractive working environment.
This includes a team-based structure, a profit share business model and
continuous training and career development, often internationally. Our strong
track record of international career moves and promotion from within means
that people who join us know that they could be our future senior managers and
Main Board Directors.
Diversity and inclusion are key to our culture and the success of our
business. It is not just an item on our to-do list, it's an inherent part of
our culture and our business. We are a people business - the people who work
here, the companies we do business with, the candidates whose lives we change
for the better on a daily basis, and the communities and individuals we help
as we give back to others. Understanding the values and cultural differences
of our employees helps them reach their potential as we build a stronger, more
successful business. We are a business which reflects society and the clients
and candidates whose lives we change.
Sustainability
We continue to strengthen our approach to sustainability and embed it across
our organisation. Our purpose is to change lives and that is why our target to
change one million lives by 2030 sits at the centre of our new corporate
Strategy. We change lives by placing candidates and working with charities and
other partners to break down the barriers to employment for those from
under-represented backgrounds. In 2023, we changed a further 133,575 lives
meaning we have changed over 500,000 lives since we set the target in 2020. We
also furthered our commitment to the environment by setting long and near-term
Net Zero science-based targets. These targets are with the Science-Based
Targets initiative for formal validation. Our Scope 1 and 2 emissions
decreased by a further 15% this year and we have put the processes and
initiatives in place to ensure we reduce emissions across our full value chain
over time, including a focus on reducing our business travel and supply chain
emissions. Our sustainability business has continued its strong growth, and we
are proud to place candidates into sustainability-related and green jobs
around the world. For further information on our sustainability efforts,
please refer to https://www.page.com/sustainability
(https://www.page.com/sustainability) .
Risks
The main factors that could affect the business and the financial results are
described in the "Principal Risks and Uncertainties" section in the PageGroup
plc 2023 Annual Report and Accounts, which will be available to shareholders
in April 2024.
GROUP RESULTS
GROSS PROFIT Reported CC
% of Group 2023 (£m) 2022 (£m) % %
EMEA 55% 549.5 538.5 +2.0% +0.3%
Americas 17% 173.3 193.4 -10.4% -9.2%
Asia Pacific 16% 159.6 195.3 -18.3% -14.3%
UK 12% 124.7 149.1 -16.4% -16.4%
Total 100% 1,007.1 1,076.3 -6.4% -6.3%
Permanent 73% 733.6 826.3 -11.2% -10.9%
Temporary 27% 273.5 250.0 +9.4% +8.9%
At constant exchange rates, Group revenue increased 1.1% to £2,010.3m (2022:
£1,990.3m), but gross profit decreased 6.3% to £1,007.1m (2022: £1,076.3m)
for the year ended 31 December 2023. Gross profit per fee earner was flat in
constant currencies but decreased by 0.3% in reported rates to £159.0k (2022:
£159.4k).
The Group's revenue and gross profit mix between permanent and temporary
placements were 37:63 (2022: 42:58) and 73:27 (2022: 77:23) respectively. This
is reflective of the tougher trading conditions during the year, particularly
within permanent recruitment, whereas temporary was more resilient. Revenue
from temporary placements comprises the salaries of those placed, together
with the margin charged. This margin on temporary placements was broadly in
line with 2022 at 21.5% (2022: 21.6%). Overall, pricing remained strong, as we
continued to see candidate shortages and high levels of vacancies in the
majority of our markets.
Total Group headcount decreased by 1,161 in the year to 7,859. This comprised
a net decrease of 1,092 fee earners (15.7%) and 69 operational support staff
(3.3%). We reduced our headcount in all four quarters, with reductions in all
regions, in line with the tougher trading conditions seen throughout 2023.
In total, administrative expenses increased 0.9% to £888.3m (2022: £880.2m).
The Group's operating profit from trading activities totalled £118.8m (2022:
£196.1m).
OPERATING PROFIT AND CONVERSION RATES
The Group's organic growth model and profit-based team bonus ensures cost
control remains tight. Approximately three-quarters of costs were employee
related, including wages, bonuses, share-based long-term incentives, and
training & relocation costs. Depreciation and amortisation for the year
totalled £66.8m (2022: £60.6m).
The Group's conversion rate for the year decreased from 18.2% in 2022 to
11.8%. This was due to the more challenging trading conditions experienced
through 2023 in the majority of our markets, partially offset by the reduction
in fee earner headcount.
As part of this refined strategy and our increased focus on our conversion
rate target, we have already implemented a number of initiatives to reduce our
cost base. These initiatives mainly focused on: removing management layers;
some small office closures including our onshore presence in Sweden; and
re-sizing our operational support function to reflect the reduction in fee
earner headcount.
These initiatives have incurred a one-off restructuring cost in 2023 of
£10.6m, offset by the majority of the cost savings being realised in FY23.
The net negative impact this year was c. £2m. Going forward, we expect these
initiatives to deliver annualised savings of c. £20m per annum compared to
our FY23 cost base from FY24 onwards. However, this will be partially offset
by inflationary salary rises made in January, which will add c. £10m to our
FY24 cost base.
EMEA was the Group's most profitable region in 2023, with a conversion rate of
16.8%. This was reflective of the region experiencing more resilient trading
conditions through 2023. Conversion in Asia Pacific fell to 7.3% (2022: 18.0%)
due primarily to the continued tough conditions in Greater China, as well as
our strategic decision to hold on to our experienced headcount in this market.
The Americas' conversion rate was 10.2%, with tougher market conditions in the
US but Latin America being more resilient. While the UK trading business was
profitable despite the tougher trading conditions, the high proportion of
senior management and operational support based in the UK meant the region had
a negative conversion rate of 2.2%.
A net interest charge of £1.4m (2022: £1.7m) was primarily due to an IFRS 16
interest charge of £2.5m.
Earnings per share and dividends
In 2023, basic and diluted earnings per share decreased to 24.4p and 24.3p
respectively (2022: 43.7p basic and 43.5p diluted), as a result of the
decrease in profits due to the tougher trading conditions.
The Group's strategy is to operate a policy of financing the activities and
development of the Group from our retained earnings and to maintain a strong
balance sheet position. The first use of our cash is to satisfy our
operational and investment requirements and to hedge our liabilities under the
Group's share plans. We then review our liquidity over and above these
requirements to make returns to shareholders, firstly by way of an ordinary
dividend.
Our policy is to grow this ordinary dividend over the course of the economic
cycle, in line with our long-term growth rate. We believe this will enable us
to sustain the level of ordinary dividend payments during a downturn as well
as to increase it during more prosperous times.
A proportion of the cash generated in excess of these first two priorities
will be returned to shareholders through supplementary returns, using special
dividends or share buybacks.
Given the high levels of surplus cash, we paid an interim dividend of 5.13
pence per share, an increase of 4.5% over the 2022 interim dividend. In
addition, in line with our policy of returning surplus capital to
shareholders, we also paid a special dividend of 15.87 pence per share. Taking
both dividends together, this amounted to a cash return to shareholders of
£66.2m, paid out in October 2023.
The Board has proposed a final dividend of 11.24p (2022: 10.76p) per ordinary
share, up 4.5% on the 2022 final dividend. When taken together with the
interim dividend of 5.13p (2022: 4.91p) per ordinary share, this is an
increase in the total dividend for the year of 4.5%. The proposed final
dividend, which amounts to £35.4m, will be paid on 21 June 2024 to
shareholders on the register as at 17 May 2024, subject to shareholder
approval at the Annual General Meeting on 3 June 2024.
We will continue to monitor our cash position in 2024 and will make returns to
shareholders in line with the above policy.
Cash flow and balance sheet
Cash flow in the year was strong, with £212.0m (2022: £246.4m) generated
from operations. The closing cash balance was £90.1m at 31 December 2023
(2022: £131.5m). The decrease on 2022 is due primarily to the cash returned
to shareholders through the payment of dividends in the year, totalling
£100.1m.
On 9 December 2022, PageGroup entered into a five year £80m committed
multi-currency revolving credit facility agreement with HSBC and BBVA. In
addition, PageGroup maintains an uncommitted Confidential Invoice Facility
with HSBC whereby the Group has the option to discount receivables in order to
advance cash. The Invoice Facility is for up to £50m depending on debtor
levels. Neither of these facilities were drawn as at 31 December 2023. These
facilities are used on an ad hoc basis to fund any major Group GBP cash
outflows.
Income tax paid in the year was £59.0m (2022: £61.6m) and net capital
expenditure was £30.8m (2022: £29.6m).
Total dividends of £100.1m were paid in 2023 (2022: £133.2m). Cash receipts
from share option exercises in 2023 reflected the share price over that
period, with £1.9m in 2023, compared to £0.4m in 2022. In 2023, £17.5m
(2022: £14.8m) was also spent on the purchase of shares by the Employee
Benefit Trust to satisfy future committed obligations under our employee share
plans.
The most significant item in our balance sheet was trade receivables, which
amounted to £270.5m at 31 December 2023 (2022: £307.8m), comprising
permanent fees invoiced and salaries and fees invoiced in the temporary
placement business, but not yet paid. Day's sales in debtors decreased due to
temporary recruitment, which has a shorter collection period, being more
resilient in 2023 than permanent recruitment.
EUROPE, MIDDLE EAST AND AFRICA (EMEA)
EMEA is the Group's largest region, contributing 55% of the Group's gross
profit in the year. With operations in 17 countries, PageGroup has a strong
presence in the majority of EMEA markets and is the clear leader in specialist
permanent recruitment in the two largest, France and Germany, and many of the
others. Across the region, permanent placements accounted for 67% and
temporary placements 33% of gross profit.
EMEA £m Growth rates
(55% of Group in 2023) 2023 2022 Reported CC
Gross Profit 549.5 538.5 +2.0% +0.3%
Operating Profit 92.2 122.1 -24.5% -25.7%
Conversion Rate (%) 16.8% 22.7%
In constant currencies, revenue grew 2.5% to £1,117.2m (2022: £1,069.3m) and
gross profit grew 0.3% to £549.5m (2022: £538.5m).
We delivered resilient results in EMEA, despite trading conditions that became
tougher as the year progressed. France, the Group's largest market, was flat,
despite tougher trading conditions in Michael Page, down 2%, whereas Page
Personnel was more resilient, up 1%, due to the higher degree of temporary
recruitment. Germany, our second largest market, grew 4% for the year against
a tough comparator in 2022, with the standout performance in our
Technology-focused Interim business, up 15%. Elsewhere in the region, Benelux
and Southern Europe both declined 1%. The Middle East and Africa grew 12%.
The region delivered operating profit of £92.2m (2022: £122.1), with a
conversion rate of 16.8% (2022: 22.7%). This was the highest conversion rate
in the Group, despite the tougher macro-economic conditions as the year
progressed. Headcount across the region decreased by 271 (6.6%) during the
year, to 3,814 at the end of 2023 (2022: 4,085).
THE AMERICAS
The Americas accounted for 17% of the Group's gross profit in 2023, with North
America representing 55% of the region and Latin America, 45%. The US, where
we have 7 offices, has a well-developed recruitment industry, but in many
disciplines, especially technical, there is limited national competition of
any scale. PageGroup's breadth of professional specialisms and geographic
reach is uncommon and provides a real competitive advantage.
Latin America is a highly under-developed region, where PageGroup enjoys the
market leading position with over 800 employees in seven countries. There are
few international competitors and none with regional scale. Across the
Americas, permanent placements accounted for 84% of gross profit and temporary
placements 16%.
Americas £m Growth rates
(17% of Group in 2023) 2023 2022 Reported CC
Gross Profit 173.3 193.4 -10.4% -9.2%
Operating Profit 17.7 17.9 -0.8% -1.4%*
Conversion Rate (%) 10.2% 9.2%
In constant currencies revenue increased 12.9% to £311.7m (2022: £282.9m)
while gross profit declined 9.2% to £173.3m (2022: £193.4m). This is
representative of current market conditions, where trading is much tougher
within permanent recruitment, whereas temporary has been more resilient.
In North America, gross profit decreased 20%, with tough market conditions
throughout the year. The US declined 20% due to tough trading conditions
impacting candidate and client confidence, particularly within Technology and
Financial Services. Over 90% of our gross profit in the US is permanent
recruitment, where conditions have been much tougher during 2023.
Latin America grew 8%, albeit this was partially due to the hyperinflationary
environment in Argentina. Excluding Argentina the region grew 3% for the year.
Brazil was up 2%, whereas Mexico was down 6% and the other four countries
increased 13%, collectively.
The Americas delivered operating profit of £17.7m (2022: £17.9m) due to the
resilience of our business in Latin America, offset by tougher trading
conditions in the US, where we have strategically held on to our headcount.
Across the region, headcount decreased by 361 (21.4%) in 2023 to 1,329 (2022:
1,690).
*Excluding the impact of hyperinflation in Argentina
ASIA PACIFIC
Asia Pacific represented 16% of the Group's gross profit in 2023, with 78% of
the region being Asia and 22% Australia. Other than in the financial centres
of Hong Kong, Singapore and Tokyo, the Asian market is generally highly
under-developed and offers attractive opportunities in both international and
domestic markets at good conversion rates. With a highly experienced
management team, more than 1,300 staff and limited competition, the size of
the opportunity in Asia is significant. Across Asia Pacific, driven by
cultural attitudes towards white collar temporary recruitment, permanent
placements accounted for 85% and temporary placements only 15% of gross
profit, well below the Group average.
Australia is a mature, well-developed and highly competitive recruitment
market. PageGroup has a meaningful presence in permanent recruitment in the
majority of the professional disciplines and major cities in Australia.
Asia Pacific £m Growth rates
(16% of Group in 2023) 2023 2022 Reported CC
Gross Profit 159.6 195.3 -18.3% -14.3%
Operating Profit 11.6 35.2 -67.0% -62.5%
Conversion Rate (%) 7.3% 18.0%
In Asia Pacific, in constant currencies, revenue declined 6.1% to £284.8m
(2022: £318.4m) and gross profit declined 14.3% to £159.6m (2022: £195.3m).
We experienced tough market conditions in Asia Pacific during 2023,
particularly within Greater China, where gross profit declined 29% with
Mainland China down 31% and Hong Kong down 23%. Whilst COVID restrictions were
eased, the recovery was slower than anticipated. This also impacted trading in
South East Asia, which was down 16%, with Singapore down 18%. India delivered
the standout result and a record year, up 6% on 2022. Japan was down 2% on
2022. Conditions were also tough in Australia which was down 10% on 2022.
The region delivered operating profit of £11.6m (2022: £35.2m), with the
conversion rate decreasing to 7.3% (2022: 18.0%). This was a result of the
tougher trading conditions across the region and our decision to strategically
hold on to our headcount in China, partially offset by the reduction in
headcount elsewhere. Headcount across the region decreased 290 (15.7%) in the
year, ending the year at 1,552 (2022: 1,842).
UNITED KINGDOM
The UK represented 12% of the Group's gross profit in 2023, operating from 22
offices covering all major cities. It is a mature, highly competitive and
sophisticated market with the majority of vacant positions being outsourced to
recruitment firms. PageGroup has a market leading presence in permanent
recruitment across the UK and a growing presence in temporary recruitment. In
the UK, permanent placements accounted for 69% and temporary placements 31% of
gross profit.
The UK business operates under all four of our brands, with representation in
13 specialist disciplines via the Michael Page brand. There remain
opportunities to increase the size and breadth of our reach under the higher
salary-level Page Executive brand and by building on our existing strengths
across Michael Page and Page Personnel.
UK £m
(12% of Group in 2023) 2023 2022 Growth rate
Gross Profit 124.7 149.1 -16.4%
Operating (Loss)/Profit (2.7) 20.9 <100%
Conversion Rate (%) -2.2% 14.0%
In the UK, revenue decreased 7.2% on 2022 to £296.7m (2022: £319.6m) and
gross profit decreased 16.4% from £149.1m in 2022 to £124.7m. Michael Page
declined 19% and Page Personnel 11%.
Operating result for the year decreased to a loss of -£2.7m (2022: profit of
£20.9m). While the UK trading business was profitable despite the tougher
trading conditions, the high proportion of senior management and operational
support based in the UK meant the region had a negative conversion rate of
2.2%. Headcount decreased 239 (17.0%) in the year to 1,164 at the end of
December 2023 (2022: 1,404).
OTHER FINANCIAL ITEMS
Taxation
The tax charge for the year was £40.4m (2022: £55.4m). This represented an
effective tax rate of 34.4% (2022: 28.5%). The rate is higher than the UK rate
for the calendar year of 23.5% (2022: 19%) principally due to the impact of
higher tax rates in overseas countries, changes to deferred tax recognition
and disallowable expenditure. There are some countries in which the tax rate
is lower than the UK, but the impact is small either because the countries are
not significant contributors to Group profit, or the tax rate difference is
not significant.
In 2023, the tax rate was impacted primarily by higher tax in overseas
countries (5.6%), derecognition of losses and other tax attributes of (2.3%),
prior year adjustments of (0.3%) and other permanent differences (2.4%),
principally employee related expenditure and entertainment expenses.
The tax charge for the year reflects the Group's tax strategy, which is
aligned to business goals. It is PageGroup's policy to pay its fair share of
taxes in the countries in which it operates and deal with its tax affairs in a
straightforward, open and honest manner. The Group's tax strategy is set out
in detail on our website in the Investor section under "Responsibilities".
Share options and share repurchases
At the beginning of 2023 the Group had 9.8m share options outstanding, of
which 5.7m had vested, but had not been exercised. During the year, options
were granted over 2.6m shares under the Group's share option plans. Options
were exercised over 0.6m shares, generating £1.9m in cash, and options lapsed
over 0.4m shares. At the end of 2023, options remained outstanding over 11.4m
shares, of which 6.1m had vested, but had not been exercised. During 2023,
3.9m shares were purchased by the Group's Employee Benefit Trust, and no
shares were cancelled (2022: 2.9m shares were purchased and no shares were
cancelled).
KEY PERFORMANCE INDICATORS (KPIs)
KPI Definition, method of calculation and analysis
Financial
Gross profit growth How measured: Gross profit growth represents revenue less cost of sales
expressed as the percentage change over the prior year. It consists
principally of placement fees for permanent candidates and the margin earned
on the placement of temporary candidates.
Why it's important: This metric indicates the degree of income growth in the
business. It can be impacted significantly by foreign exchange movements in
our international markets. Consequently, we look at both reported and constant
currency metrics.
How we performed in 2023: Gross profit decreased 6.3% in constant currencies
and 6.4% in reported rates against 2022. This was due to the tough trading
conditions in 2023, which impacted client and candidate confidence.
Relevant strategic objective: Organic growth
Ratio of gross profit generated from permanent and temporary placements How measured: Gross profit from each type of placement expressed as a
percentage of total gross profit.
Why it's important: This ratio reflects both the current stage of the
economic cycle and our geographic spread, as a number of countries culturally
have minimal white collar temporary roles. It gives a guide as to the
operational gearing potential in the business, which is significantly greater
for permanent recruitment.
How we performed in 2023: The ratio decreased from 2022 to 73:27 (2022:
77:23). Market conditions were tougher within permanent recruitment, whereas
temporary recruitment was more resilient to the uncertainty, as is normally
the case in tougher economic conditions.
Relevant strategic objective: Diversification
Basic earnings per share (EPS) How measured: Profit for the year attributable to the Group's equity
shareholders, divided by the weighted average number of shares in issue during
the year.
Why it's important: This measures the underlying profitability of the Group
and the progress made against the prior year.
How we performed in 2023: The Group saw a 44.2% decrease in Basic EPS to
24.4p, due to the decline in operating profit from our record year in 2022.
Relevant strategic objective: Sustainable growth
Cash How measured: Cash and short-term deposits
Why it's important: The level of cash reflects our cash generation and
conversion capabilities and our success in managing our working capital. It
determines our ability to reinvest in the business, to return cash to
shareholders and to ensure we remain financially robust through cycles.
How we performed in 2023: Cash decreased to £90.1m (2022: £131.5m). The
decline was as a result of the tougher trading conditions impacting results,
as well as having paid out £100.1m in dividends during 2023.
Relevant strategic objective: Sustainable growth
Strategic
Fee earner headcount growth How measured: Number of fee earners and directors involved in
revenue-generating activities at the year-end, expressed as the percentage
change compared to the prior year.
Why it's important: Growth in fee earners is a guide to our confidence in the
business and macro-economic outlook, as it reflects our expectations as to the
level of future demand for our services above the existing capacity currently
within the business.
How we performed in 2023: Net fee earner headcount decreased by 1,092, or
15.7% in the year, resulting in 5,851 fee earners at the end of the year. As
trading conditions became more challenging from the end of 2022 into 2023, we
reduced our headcount accordingly, with reductions in all regions.
Relevant strategic objective: Sustainable growth
Gross profit per fee earner How measured: Gross profit divided by the average number of fee-generating
staff, calculated on a rolling monthly average basis.
Why it's important: This is our indicator of productivity, which is affected
by levels of activity in the market, capacity within the business and the
number of recently hired fee earners who are not yet at full productivity.
Currency movements can also impact this figure.
How we performed in 2023: Productivity was flat in constant currencies on
2022, but declined 0.3% in reported rates to £159.0k (2022: £159.4k). Whilst
we experienced tough trading conditions in 2023, our action on fee earner
headcount through the year meant productivity stayed flat on 2022 and at
record levels for the Group.
Relevant strategic objective: Organic growth
Conversion rate How measured: Operating profit (EBIT) expressed as a percentage of gross
profit.
Why it's important: This reflects the level of fee-earner productivity and
the Group's effectiveness at controlling costs in the business, together with
the degree of investment being made for future growth.
How we performed in 2023: The Group's conversion rate for the year decreased
to 11.8% (2022: 18.2%). This was reflective of the tougher trading conditions
during the year, partly offset by the reduction in fee earner headcount.
Relevant strategic objective: Sustainable growth
People
Employee engagement index How measured: A key output of the employee surveys undertaken periodically
within the business.
Why it's important: A positive working environment and motivated team helps
productivity and encourages retention of key talent within the business.
How we performed in 2023: We recorded an 85% positive score for employee
engagement in the latest Employee Engagement Survey in 2023. This compares
with 87% in the last equivalent survey performed in 2022, which was a record
year in terms of financial performance. The 2023 survey was a combination of
questions, including: how valued our people felt; how proud they were to work
for PageGroup; and how they can see their work relates to PageGroup's purpose
of changing lives.
Relevant strategic objective: Sustainable growth
To become Net Zero across our full value chain by 2050 How measured: Direct and Indirect GHG emissions calculated in line with the
GHG Protocol.
Why it's important: The CO2e impact of our operations and value chain is
examined in absolute terms in the emissions estimates.
How we performed in 2023: Total GHG emissions (Scope 1, 2 and 3) decreased by
-1% to 64,518 tCO2e. Operational emissions (Scope 1 and 2 emissions) reduced
by -15% to 2,534 tCO2e due to the continued transition of our offices to
renewable energy. Value chain emissions (Scope 3) decreased by -1% to 61,984
tCO2e. A reduction in emissions from our supply chain and waste was offset by
increased commuting and travel in our first full year without disruption from
COVID-19.
Relevant strategic objective: Sustainable growth.
Intensity values of GHG emissions How measured: Intensity values for GHG emissions are based on property and
vehicle emissions per 1,000 headcount. Headcount is viewed as being the most
representative metric for PageGroup's activity levels and is unaffected by
issues such as business mix or foreign exchange variations.
Why it's important: Intensity values help to normalise the GHG metrics and
place them in the context of the Group's changing business profile,
particularly in terms of increases in headcount. It helps to identify where
progress has been made on emissions reduction.
How we performed in 2023: Tonnes of CO2e per employee increased by 10% to 7.9
Tonnes of CO2e per employee. The percentage reduction in headcount was greater
than the reduction in overall emissions. Therefore, intensity values have
increased.
Relevant strategic objective: Sustainable growth.
The source of data and calculation methods year-on-year are on a consistent
basis, including changes resulting from the use of 2023 DEFRA conversion
factors. The movements in KPIs are in line with expectations.
Nicholas Kirk Kelvin Stagg
Chief Executive Officer Chief Financial Officer
6 March 2024 6 March 2024
Consolidated Income Statement
For the year ended 31 December 2023
2023 2022
Note £'000 £'000
Revenue 3 2,010,303 1,990,287
Cost of sales (1,003,171) (913,993)
Gross profit 3 1,007,132 1,076,294
Administrative expenses (888,317) (880,215)
Operating profit 3 118,815 196,079
Financial income 4 2,236 1,104
Financial expenses 4 (3,615) (2,817)
Profit before tax 3 117,436 194,366
Income tax expense 5 (40,368) (55,354)
Profit for the year 77,068 139,012
Attributable to:
Owners of the parent 77,068 139,012
Earnings per share
Basic earnings per share (pence) 8 24.4 43.7
Diluted earnings per share (pence) 8 24.3 43.5
The above results all relate to continuing operations
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2023
2023 2022
£'000 £'000
Profit for the year 77,068 139,012
Other comprehensive income for the year
Items that may subsequently be reclassified to profit and loss:
Currency translation differences (12,353) 15,441
Actuarial loss on retirement benefits (1,735) -
Deferred tax from actuarial loss on retirement benefits 435 -
Total comprehensive income for the year 63,415 154,453
Attributable to:
Owners of the parent 63,415 154,453
Consolidated Balance Sheet
As at 31 December 2023
2023 2022
Note £'000 £'000
Non-current assets
Property, plant and equipment 9 47,452 36,123
Right-of-use assets 98,386 100,996
Intangible assets - Goodwill and other intangible 1,859 1,955
Computer software 30,239 38,045
Deferred tax assets 19,856 18,641
Other receivables 10 13,017 13,224
210,809 208,984
Current assets
Trade and other receivables 10 380,243 437,247
Current tax receivable 23,384 17,233
Cash and cash equivalents 12 90,138 131,480
493,765 585,960
Total assets 3 704,574 794,944
Current liabilities
Trade and other payables 11 (259,856) (289,108)
Provisions (4,298) (2,772)
Lease liabilities (31,746) (31,268)
Current tax payable (5,958) (18,050)
(301,858) (341,198)
Net current assets 191,907 244,762
Non-current liabilities
Other payables 11 (10,156) (14,951)
Lease liabilities (79,187) (78,564)
Deferred tax liabilities (2,342) (1,345)
Provisions (4,543) (6,683)
(96,228) (101,543)
Total liabilities 3 (398,086) (442,741)
Net assets 306,488 352,203
Capital and reserves
Called-up share capital 3,286 3,286
Share premium 99,564 99,564
Capital redemption reserve 932 932
Reserve for shares held in the employee benefit trust (66,813) (56,626)
Currency translation reserve 19,985 32,338
Retained earnings 249,534 272,709
Total equity 306,488 352,203
Consolidated Statement of Changes in Equity
For the year ended 31 December 2023
Reserve
for shares
held in the
employee
benefit trust
Called-up Capital Currency
share redemption translation
capital reserve reserve
Share Retained Total
premium earnings equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2022 3,286 99,564 932 (47,338) 16,897 266,764 340,105
Currency translation differences - - - - 15,441 - 15,441
Net income recognised directly in equity - - - - 15,441 - 15,441
Profit for the year ended 31 December 2022 - - - - - 139,012 139,012
Total comprehensive income for the year - - - - 15,441 139,012 154,453
Purchase of shares held in employee benefit trust - - - (14,838) - - (14,838)
Exercise of share plans - - - - - 447 447
Reserve transfer when shares held in the employee benefit trust vest - - - 5,550 - (5,550) -
Credit in respect of share schemes - - - - - 5,989 5,989
Debit in respect of tax on share schemes - - - - - (706) (706)
Dividends - - - - - (133,247) (133,247)
- - - 9,288 - (133,067) (142,355)
Balance at 31 December 2022 and 1 January 2023 3,286 99,564 932 (56,626) 32,338 272,709 352,203
Currency translation differences - - - - (12,353) - (12,353)
Actuarial loss on retirement benefits net of tax - - - - - (1,300) (1,300)
Net expense recognised directly in equity - - - - (12,353) (1,300) (13,653)
Profit for the year ended 31 December 2023 - - - - - 77,068 77,068
Total comprehensive (expense)/income for the year - - - - (12,353) 75,768 63,415
Purchase of shares held in employee benefit trust - - - (17,529) - - (17,529)
Exercise of share plans - - - - - 1,946 1,946
Reserve transfer when shares held in the employee benefit trust vest - - - 7,342 - (7,342) -
Credit in respect of share schemes - - - - - 5,501 5,501
Credit in respect of tax on share schemes - - - - - 1,016 1,016
Dividends - - - - - (100,064) (100,064)
- - - (10,187) - (98,943) (109,130)
Balance at 31 December 2023 3,286 99,564 932 (66,813) 19,985 249,534 306,488
Condensed Consolidated Statement of Cash Flows
For the year ended 31 December 2023
2023 2022
Note £'000 £'000
Profit before tax 117,436 194,366
Depreciation and amortisation charges 66,781 60,592
Loss on sale of property, plant and equipment, and computer software 819 4,398
Share scheme charges 5,501 5,989
Net finance costs 1,379 1,713
Operating cash flow before changes in working capital 191,916 267,058
Decrease/(Increase) in receivables 46,057 (61,509)
(Decrease)/Increase in payables (26,002) 40,821
Cash generated from operations 211,971 246,370
Income tax paid (58,963) (61,598)
Net cash from operating activities 153,008 184,772
Cash flows from investing activities
Purchases of property, plant and equipment (27,348) (21,982)
Purchases of intangible assets (4,033) (9,693)
Proceeds from the sale of property, plant and equipment, and computer software 587 2,080
Interest received 2,236 1,104
Net cash used in investing activities (28,558) (28,491)
Cash flows from financing activities
Dividends paid (100,064) (133,247)
Interest paid (1,070) (1,213)
Lease liability principal repayment (40,045) (35,896)
Issue of own shares for the exercise of options 1,946 447
Purchase of shares into the employee benefit trust (17,529) (14,838)
Net cash used in financing activities (156,762) (184,747)
Net decrease in cash and cash equivalents (32,312) (28,466)
Cash and cash equivalents at the beginning of the year 131,480 153,983
Exchange (loss)/gain on cash and cash equivalents (9,030) 5,963
Cash and cash equivalents at the end of the year 12 90,138 131,480
Notes to the consolidated preliminary results
For the year ended 31 December 2023
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 2023 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 2023 were approved by the Directors on 6 March 2024. The Annual
General Meeting of PageGroup plc will be held at the registered office, 200
Dashwood Lang Road, Addlestone, Surrey, KT15 2NX on 3 June 2024 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 Accounting Standards in conformity with the requirements of
Section 408 of the Companies Act 2006 and UK-adopted International Accounting
Standards (IFRSs), 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 2023 and are presented in UK Sterling and all values
are rounded to the nearest thousand (UK £'000), except when otherwise
indicated.
Going concern
The Board has undertaken a review of the Group's forecasts and associated
risks and sensitivities, in the period from the date of approval of the
financial statements to March 2025 (review period).
The Board considered a variety of downsides that the Group might experience,
such as a global downturn, a cyber-attack resulting in significant
reputational damage and loss of clients and candidates, and the Group's
business model becoming ineffective due to new innovations such as recruitment
via social media. All modelled scenarios would be expected to impact gross
profit and headcount, impacting conversion.
The Group had £90.1m of cash as at 31 December 2023, with no debt except for
IFRS 16 lease liabilities of £110.9m. Debt facilities relevant to the review
period comprise a committed £80m RCF maturing December 2027, an uncommitted
UK trade debtor discounting facility (up to £50m depending on debtor levels)
and an uncommitted £20m UK bank overdraft facility. Under these latest
forecasts, the Group is able to operate without the need to draw on its
available facilities. The forecast cash flows indicate that the Group will
comply with all relevant banking covenants during the review period.
Despite the macroeconomic and political uncertainty that currently exists, and
its inherent risk and impact on the business, based on the analysis performed
there are no plausible downside scenarios that the Board believes would cause
a liquidity issue.
Given the Group's resilient performance in 2023, the level of cash in the
business and the Group's borrowing facilities, the geographical and discipline
diversification, limited customer concentration risk, as well as the ability
to manage the cost base, the Board has concluded that the Group has adequate
resources to continue in operation, meet its liabilities as they fall due,
retain sufficient available cash and not breach the covenants under the RCF
for the foreseeable future, being a period of at least 12 months from the date
of the approval of the financial statements. The Board therefore considers it
appropriate for the Group to adopt the going concern basis in preparing its
financial statements.
Nature of financial information
The financial information contained within this preliminary announcement for
the 12 months to 31 December 2023 and 12 months to 31 December 2022 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 2022 have been filed with the
Registrar of Companies and those for the 12 months to 31 December 2023 will be
filed following the Company's Annual General Meeting.
The auditors' reports on the accounts for both the 12 months to 31 December
2023 and 12 months to 31 December 2022 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
2024.
New accounting standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the condensed
consolidated preliminary results are consistent with those followed in the
preparation of the Group's annual consolidated financial statements for the
year ended 31 December 2023.
The Group has not early adopted any standard, interpretation or amendment that
has been issued but is not yet effective, that has had a material impact on
the financial statements.
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
2023 2022 2023 2022
£'000 £'000 £'000 £'000
EMEA 1,117,150 1,069,346 549,511 538,488
Asia Pacific 284,821 318,359 159,636 195,276
Americas 311,653 282,942 173,312 193,397
United Kingdom 296,679 319,640 124,673 149,133
2,010,303 1,990,287 1,007,132 1,076,294
Operating Profit
2023 2022
£'000 £'000
EMEA 92,176 122,079
Asia Pacific 11,613 35,244
Americas 17,749 17,885
United Kingdom (2,723) 20,871
Operating profit 118,815 196,079
Financial expense (1,379) (1,713)
Profit before tax 117,436 194,366
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
intangible assets.
(b) Segment assets, liabilities and non-current assets by
reportable segment
Total Assets Total Liabilities
2023 2022 2023 2022
£'000 £'000 £'000 £'000
EMEA 322,635 338,251 250,651 248,585
Asia Pacific 99,919 128,299 58,548 69,995
Americas 98,697 116,647 50,333 60,635
United Kingdom 159,939 194,514 32,596 45,476
Segment assets/liabilities 681,190 777,711 392,128 424,691
Income tax 23,384 17,233 5,958 18,050
704,574 794,944 398,086 442,741
Property, Plant & Equipment Intangible Assets
2023 2022 2023 2022
£'000 £'000 £'000 £'000
EMEA 16,101 14,072 2,044 2,296
Asia Pacific 5,269 6,194 37 110
Americas 5,947 7,378 3 5
United Kingdom 20,135 8,479 30,014 37,589
47,452 36,123 32,098 40,000
Right-of-use assets Lease liabilities
2023 2022 2023 2022
£'000 £'000 £'000 £'000
EMEA 70,907 61,760 76,867 65,136
Asia Pacific 12,486 17,415 16,854 20,042
Americas 7,989 11,950 10,257 14,434
United Kingdom 7,004 9,871 6,955 10,220
98,386 100,996 110,933 109,832
The below analyses in notes (c) and (d) relates to the requirement of IFRS 15
to disclose disaggregated revenue by streams and region.
(c) Revenue and gross profit generated from permanent and
temporary placements
Revenue Gross Profit
2023 2022 2023 2022
£'000 £'000 £'000 £'000
Permanent 738,563 832,014 733,657 826,321
Temporary 1,271,740 1,158,273 273,475 249,973
2,010,303 1,990,287 1,007,132 1,076,294
(d) Revenue generated from permanent and temporary placements by
reportable segment
Permanent Temporary
2023 2022 2023 2022
£'000 £'000 £'000 £'000
EMEA 369,582 380,002 747,568 689,344
Asia Pacific 135,462 170,029 149,359 148,330
Americas 146,916 170,970 164,737 111,972
United Kingdom 86,603 111,013 210,076 208,627
738,563 832,014 1,271,740 1,158,273
The below analysis in note (e) revenue and gross profit by discipline (being
the professions of candidates placed) has been included as additional
disclosure over and above the requirements of IFRS 8 "Operating Segments".
(e) Revenue and gross profit by discipline
Revenue Gross Profit
2023 2022 2023 2022
£'000 £'000 £'000 £'000
Accounting and Financial Services 720,927 720,783 332,282 343,659
Technology 360,392 328,286 138,069 149,634
Legal, HR, Secretarial and Other 315,811 339,257 163,308 185,138
Engineering, Property & Construction, Procurement & Supply Chain 427,850 400,959 242,897 251,686
Marketing, Sales and Retail 185,323 201,002 130,576 146,177
2,010,303 1,990,287 1,007,132 1,076,294
4. Financial income / (expenses)
2023 2022
£'000 £'000
Financial income
Interest receivable 2,236 1,104
Financial expenses
Interest payable (1,072) (1,213)
Interest on lease liabilities (2,543) (1,604)
(3,615) (2,817)
5. Taxation
The tax charge for the year was £40.4m (2022: £55.4m). This represented an
effective tax rate of 34.4% (2022: 28.5%). The rate is higher than the
effective UK rate for the calendar year of 23.5% (2022: 19%) principally due
to the impact of higher tax rates in overseas countries and to a lesser
extent, disallowable expenditure. There are some countries in which the tax
rate is lower than the UK, but the impact is small either because the
countries are not significant contributors to Group profit, or the tax rate
difference is not significant. This is slightly lower than the prior year
mainly due to the profit mix in the year and a small reduction in tax
provisions.
In 2023, the tax rate was impacted primarily by higher tax in overseas
countries (5.6%), derecognition of losses and other tax attributes of (2.3%),
prior year adjustments of (0.3%), and other permanent differences (2.4%),
principally employee related expenditure and entertainment expenses.
The tax charge for the year reflects the Group's tax strategy, which is
aligned to business goals. It is PageGroup's policy to pay its fair share of
taxes in the countries in which it operates and deal with its tax affairs in a
straightforward, open and honest manner. The Group's tax strategy is set out
in detail on our website in the Investor section under "Responsibilities".
6. Dividends
2023 2022
£'000 £'000
Amounts recognised as distributions to equity holders in the year:
Final dividend for the year ended 31 December 2022 of 10.76p per ordinary 33,889 32,740
share (2021: 10.30p)
Interim dividend for the year ended 31 December 2023 of 5.13p per ordinary 16,166 15,607
share (2022: 4.91p)
Special dividend for the year ended 31 December 2023 of 15.87p per ordinary 50,009 84,900
share (2022: 26.71p)
100,064 133,247
Amounts proposed as distributions to equity holders in the year:
Proposed final dividend for the year ended 31 December 2023 of 11.24p per 35,449 34,207
ordinary share (2022: 10.76p)
The proposed final dividend had not been approved by the Board at 31 December
and therefore has not been included as a liability.
The proposed final dividend of 11.24p (2022: 10.76p) per ordinary share will
be paid on 21 June 2024 to shareholders on the register at the close of
business on 17 May 2024.
7. Share-based payments
In accordance with IFRS 2 "Share-based Payment", a charge of £5.5m has been
recognised for share options and other share-based payment arrangements
(excluding social charges) (31 December 2022: £6.0m).
8. Earnings per ordinary share
The calculation of the basic and diluted earnings per share is based on the
following data:
Earnings 2023 2022
Earnings for basic and diluted earnings per share (£'000) 77,068 139,012
Number of shares
Weighted average number of shares used for basic earnings per share ('000) 315,784 318,166
Dilution effect of share plans ('000) 1,311 1,204
Diluted weighted average number of shares used for diluted earnings per share 317,095 319,370
('000)
Basic earnings per share (pence) 24.4 43.7
Diluted earnings per share (pence) 24.3 43.5
The above results all relate to continuing operations.
9. Property, plant and equipment
Acquisitions and Disposals
During the year ended 31 December 2023 the Group acquired property, plant and
equipment with a cost of £27.3m (2022: £22.0m).
10. Trade and other receivables
2023 2022
£'000 £'000
Current
Trade receivables 281,652 320,794
Less allowance for expected credit losses (11,144) (12,960)
Net trade receivables 270,508 307,834
Other receivables 10,187 21,535
Accrued income 83,426 88,951
Prepayments 16,122 18,927
380,243 437,247
Non-current
Other Receivables 13,017 13,224
11. Trade and other payables
2023 2022
£'000 £'000
Current
Trade payables 8,383 11,101
Other tax and social security 61,557 61,079
Other payables 33,595 36,629
Accruals 156,321 180,299
259,856 289,108
Non-current
Other tax and social security 1,045 422
Accruals 9,111 14,529
10,156 14,951
12. Cash and cash equivalents
2023 2022
£'000 £'000
Cash at bank and in hand 90,138 131,480
Short-term deposits - -
Cash and cash equivalents 90,138 131,480
Cash and cash equivalents in the statement of cash flows 90,138 131,480
The Group operates multi-currency cash concentration and notional cash pools,
and an interest enhancement facility. The Eurozone subsidiaries and the
UK-based Group Treasury subsidiary participate in the cash concentration
arrangement, the Group Treasury subsidiary retains the notional cash pool and
the Asia Pacific subsidiaries operate the interest enhancement facility. The
structures facilitate interest compensation of cash whilst supporting working
capital requirements.
PageGroup maintains a Confidential Invoice Facility with HSBC whereby the
Group has the option to discount facilities in order to advance cash on its
receivables. The facility is used only ad hoc in case the Group needs to fund
any major GBP cash outflow.
13. Annual General Meeting
The Annual General Meeting of PageGroup plc will be held at 200 Dashwood Lang
Road, Addlestone, Surrey, KT15 2NX on 3 June 2024 at 9.30am.
14. 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:
https://www.page.com/presentations/year/2024
(https://www.page.com/presentations/year/2024%0d)
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 2023. Certain
parts of the annual report are not included within this announcement.
We confirm that, to the best of our knowledge:-
a) that the consolidated financial statements, prepared in accordance with
UK-adopted international accounting standards, give a true and fair view of
the assets, liabilities, financial position and profit of the Parent Company
and 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
N Kirk K Stagg
Chief Executive Officer Chief Financial Officer
6 March 2024 6 March 2024
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. END FR UNUARSUUORURRecent news on Pagegroup
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