REG - PageGroup plc - Half-year Report <Origin Href="QuoteRef">PAGE.L</Origin> - Part 2
10/08/2017 07:07
- Part 2: For the preceding part double click ID:nRSJ5886Na
Balance at 30 June 2016 3,259 90,393 932 (73,348) 29,263 185,092 235,591
Currency translation differences - - - - 3,483 - 3,483
Net income recognised directly in equity - - - - 3,483 - 3,483
Loss on hedging instruments - - - - - (1,075) (1,075)
Profit for the six months ended 31 December 2016 - - - - - 38,323 38,323
Total comprehensive income for the period - - - - 3,483 37,248 40,731
Exercise of share plans - 65 - - - 132 197
Reserve transfer when shares held in the employee benefit trust vest - - - 407 - (407) -
Credit in respect of share schemes - - - - - 1,954 1,954
Debit in respect of tax on share schemes - - - - - (165) (165)
Dividends - - - - - (31,747) (31,747)
- 65 - 407 - (30,233) (29,761)
Balance at 31 December 2016 and 1 January 2017 3,259 90,458 932 (72,941) 32,746 192,107 246,561
Currency translation differences - - - - (1,935) - (1,935)
Net loss recognised directly in equity - - - - (1,935) - (1,935)
Profit on hedging instruments - - - - - 706 706
Profit for the six months ended 30 June 2017 - - - - - 40,912 40,912
Total comprehensive (loss)/income for the period - - - - (1,935) 41,618 39,683
Exercise of share plans 17 1,596 - - - 4,049 5,662
Reserve transfer when shares held in the employee benefit trust vest - - - 7,161 - (7,161) -
Credit in respect of share schemes - - - - - 4,019 4,019
Debit in respect of tax on share schemes - - - - - (337) (337)
Dividends - - - - - (25,860) (25,860)
17 1,596 - 7,161 - (25,290) (16,516)
Balance at 30 June 2017 3,276 92,054 932 (65,780) 30,811 208,435 269,728
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2017
Year ended
30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Cash generated from operations 12 52,495 41,262 121,319
Income tax paid (24,628) (14,802) (32,499)
Net cash from operating activities 27,867 26,460 88,820
Cash flows from investing activities
Purchases of property, plant and equipment (4,863) (7,269) (14,111)
Purchases of intangible assets (4,387) (4,634) (11,153)
Proceeds from the sale of property, plant and equipment, and computer software 630 994 1,890
Interest received 148 50 117
Net cash used in investing activities (8,472) (10,859) (23,257)
Cash flows from financing activities
Dividends paid (25,860) (24,564) (56,311)
Interest paid (1,579) (124) (460)
Issue of own shares for the exercise of options 5,662 167 364
Purchase of shares into the employee benefit trust - (15,058) (15,058)
Net cash used in financing activities (21,777) (39,579) (71,465)
Net decrease in cash and cash equivalents (2,382) (23,978) (5,902)
Cash and cash equivalents at the beginning of the period 92,796 95,018 95,018
Exchange (loss)/gain on cash and cash equivalents (1,468) 2,594 3,680
Cash and cash equivalents at the end of the period 13 88,946 73,634 92,796
Notes to the condensed set of interim results
For the six months ended 30 June 2017
1. General information
The information for the year ended 31 December 2016 does not constitute
statutory accounts as defined in section 435 of the Companies Act 2006. A copy
of the statutory accounts for that year has been delivered to the Registrar of
Companies. The auditors reported on those accounts: their report was
unqualified, did not draw attention to any matters by way of emphasis and did
not contain a statement under section 498(2) or (3) of the Companies Act
2006.
2. Accounting policies
Basis of preparation
The unaudited interim condensed consolidated financial statements for the six
months ended 30 June 2017 have been prepared in accordance with IAS 34
'Interim financial reporting' and with the Disclosure and Transparency Rules
of the Financial Conduct Authority.
The unaudited interim condensed consolidated financial statements do not
constitute the Group's statutory financial statements. The Group's most
recent statutory financial statements, which comprise the annual report and
audited financial statements for the year ended 31 December 2016, were
approved by the directors on 7 March 2017. The interim condensed consolidated
financial statements should be read in conjunction with the Annual Report and
Accounts for the year ended 31 December 2016, which have been prepared in
accordance with International Financial Reporting Standards ('IFRSs') as
adopted by the European Union.
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 2016.
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 interim
management report. The interim 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 half-yearly financial report.
New accounting standards, interpretations and amendments adopted by the Group
We are continuing with our review and implementation of two new Accounting
Standards, "IFRS 15 - Revenue from Contacts with Customers" and "IFRS 16 -
Leases". The potential impact on our accounts of both of these Standards were
disclosed in our Annual Report and Accounts for the year ended 31 December
2016. Our expectations as to their impact remain in line with these
disclosures. A final conclusion on IFRS 15 and a further update on IFRS 16
will be provided in this year's Annual Report and Accounts. The Group doesn't
anticipate that "IFRS 9 - Financial Instruments' will have a material impact
on the Group's financial statements once it becomes effective from 1 January
2018.
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
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2017 2016 2016 2017 2016 2016
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 323,092 254,341 538,403 162,117 129,137 271,863
United Kingdom 160,675 166,655 324,548 73,020 74,743 146,313
Asia Pacific Australia and New Zealand 56,256 48,025 103,979 19,010 16,310 35,085
Asia 60,616 49,537 105,692 47,644 40,215 84,644
Total 116,872 97,562 209,671 66,654 56,525 119,729
Americas 72,507 57,333 123,503 50,196 38,746 83,129
673,146 575,891 1,196,125 351,987 299,151 621,034
Operating Profit
Six months ended Year ended
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
EMEA 31,397 23,841 51,685
United Kingdom 8,706 11,623 24,153
Asia Pacific Australia and New Zealand 2,557 1,998 4,592
Asia 8,741 7,382 16,135
Total 11,298 9,380 20,727
Americas 5,519 2,254 4,387
Operating profit 56,920 47,098 100,952
Financial income/(expense) 28 (191) (956)
Profit before tax 56,948 46,907 99,996
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
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2017 2016 2016 2017 2016 2016
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 200,716 166,280 187,257 97,687 81,624 96,270
United Kingdom 109,452 124,919 119,036 43,680 57,220 43,306
Asia Pacific Australia and New Zealand 26,528 24,415 24,869 12,141 10,661 10,526
Asia 61,587 57,686 56,182 14,708 14,798 16,462
Total 88,115 82,101 81,051 26,849 25,459 26,988
Americas 59,221 49,454 56,311 18,723 13,434 18,869
Segment assets/liabilities 457,504 422,754 443,655 186,939 177,737 185,433
Income tax 16,488 11,237 12,743 17,325 20,663 24,404
473,992 433,991 456,398 204,264 198,400 209,837
Property, Plant & Equipment Intangible Assets
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2017 2016 2016 2017 2016 2016
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 11,342 8,561 10,707 3,892 2,981 3,862
United Kingdom 6,989 7,209 7,142 32,664 32,769 33,278
Asia Pacific Australia and New Zealand 1,133 1,362 1,376 11 50 22
Asia 3,136 2,599 3,053 40 42 31
Total 4,269 3,961 4,429 51 92 53
Americas 6,941 7,103 7,183 445 617 690
29,541 26,834 29,461 37,052 36,459 37,883
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
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2017 2016 2016 2017 2016 2016
£'000 £'000 £'000 £'000 £'000 £'000
Accounting and Financial Services 278,831 248,789 511,449 129,975 115,767 238,366
Legal, Technology, HR, Secretarial and Other 163,819 142,119 294,972 79,299 66,859 138,830
Engineering, Property & Construction, Procurement & Supply Chain 138,442 105,125 227,908 76,358 58,420 125,545
Marketing, Sales and Retail 92,054 79,858 161,796 66,355 58,105 118,293
673,146 575,891 1,196,125 351,987 299,151 621,034
(d) Revenue and gross profit generated from permanent and
temporary placements
Revenue Gross Profit
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2017 2016 2016 2017 2016 2016
£'000 £'000 £'000 £'000 £'000 £'000
Permanent 270,852 232,129 476,321 267,287 228,136 469,960
Temporary 402,294 343,762 719,804 84,700 71,015 151,074
673,146 575,891 1,196,125 351,987 299,151 621,034
4. Financial income / (expenses)
Six months ended Year ended
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Financial income
Bank interest receivable 148 50 117
Financial expenses
Bank interest payable (120) (241) (465)
Interest on discounting of French construction participation tax - - (608)
(120) (241) (1,073)
5. Taxation
Taxation for the six month period is charged at 28.2% (six months ended 30
June 2016: 28.0%; year ended 31 December 2016: 27.9%), representing the best
estimate of the average annual effective tax rate expected for the full year,
applied to the pre-tax income for the six month period.
6. Dividends
Six months ended Year ended
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Amounts recognised as distributions to equity holders in the year:
Final dividend for the year ended 31 December 2016 of 8.23p per ordinary share (2015: 7.90p) 25,860 24,564 24,564
Interim dividend for the period ended 30 June 2016 of 3.75p per ordinary share (2015: 3.60p) - - 11,660
Special dividend for the year ended 31 December 2016 of 6.46p per ordinary share (2015: 16.0p) - - 20,087
25,860 24,564 56,311
Amounts proposed as distributions to equity holders in the year:
Proposed interim dividend for the period ended 30 June 2017 of 3.90p per ordinary share (2016: 3.75p) 12,253 11,617 -
Proposed special dividend for the year ended 31 December 2017 of 12.73p per ordinary share (2016: 6.46p) 40,000 20,013 -
Proposed final dividend for the year ended 31 December 2016 of 8.23p per ordinary share - - 25,599
The proposed interim and special dividends have not been approved by the Board
at 30 June 2017 and therefore have not been included as a liability. The
comparative dividend at 30 June 2016 was also not recognised as a liability in
the prior period.
The proposed interim dividend of 3.90p (2016: 3.75p) per ordinary share and
special dividend of 12.73p (2016: 6.46p) per ordinary share will be paid on 11
October 2017 to shareholders on the register at the close of business on 8
September 2017.
7. Share-based payments
In accordance with IFRS 2 "Share-based Payment", a charge of £4.3m has been
recognised for share options and other share-based payment arrangements
(including social charges) (30 June 2016: £2.0m, 31 December 2016: £4.2m).
8. Earnings per ordinary share
The calculation of the basic and diluted earnings per share is based on the
following data:
Six months ended Year ended
30 June 30 June 31 December
Earnings 2017 2016 2016
Earnings for basic and diluted earnings per share (£'000) 40,912 33,773 72,096
Number of shares
Weighted average number of shares used for basic earnings per share ('000) 312,072 312,249 311,534
Dilution effect of share plans ('000) 1,222 974 802
Diluted weighted average number of shares used for diluted earnings per share ('000) 313,294 313,223 312,336
Basic earnings per share (pence) 13.1 10.8 23.1
Diluted earnings per share (pence) 13.1 10.8 23.1
The above results all relate to continuing operations.
9. Property, plant and equipment
Acquisitions
During the period ended 30 June 2017 the Group acquired property, plant and
equipment with a cost of £4.9m (30 June 2016: £7.3m, 31 December 2016:
£14.1m).
10. Trade and other receivables
Six months ended Year ended
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Current
Trade receivables 225,853 198,152 210,145
Less provision for impairment of receivables (6,497) (6,715) (5,070)
Net trade receivables 219,356 191,437 205,075
Other receivables 5,235 12,084 9,612
Accrued income 42,861 43,901 37,623
Prepayments 10,787 11,021 7,018
278,239 258,443 259,328
Non-current
Other Receivables 9,110 4,254 7,640
11. Trade and other payables
Six months ended Year ended
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Current
Trade payables 1,331 8,738 7,515
Other tax and social security 52,416 47,052 46,813
Other payables 21,113 12,292 21,407
Accruals 97,374 89,729 98,084
Deferred income 1,290 1,705 1,240
173,524 159,516 175,059
Non-current
Deferred income 11,943 7,432 9,702
Other tax and social security 391 299 242
12,334 7,731 9,944
12. Cash flows from operating activities
Six months ended Year ended
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Profit before tax 56,948 46,907 99,996
Depreciation and amortisation charges 9,083 8,221 17,065
(Income)/loss on sale of property, plant and equipment, and computer software (34) (9) 186
Share scheme charges 4,019 2,414 4,235
Net finance (income)/cost (28) 191 956
Operating cash flow before changes in working capital 69,988 57,724 122,438
Increase in receivables (18,660) (22,599) (21,061)
Increase in payables 1,167 6,137 19,942
Cash generated from operations 52,495 41,262 121,319
13. Cash and cash equivalents
Six months ended Year ended
30 June 30 June 31 December
2017 2016 2016
£'000 £'000 £'000
Cash at bank and in hand 83,316 74,773 78,022
Short-term deposits 5,630 7,449 14,774
Cash and cash equivalents 88,946 82,222 92,796
Bank overdrafts - (8,588) -
Cash and cash equivalents in the statement of cash flows 88,946 73,634 92,796
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. The structure facilitates interest and balance compensation
of cash and bank overdrafts.
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.
RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:-
a) the condensed set of interim financial statements has been prepared in
accordance with IAS 34 "Interim Financial Reporting"
b) the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first six
months and description of principal risks and uncertainties for the remaining
six months of the year); and
c) the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and
changes therein).
On behalf of the Board
S Ingham K Stagg
Chief Executive Officer Chief Financial Officer
9 August 2017
Copies of the condensed interim financial statements are now available and can
be downloaded from the Company's website
http://www.page.com/investors/investor-library/2017.aspx
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