REG - PageGroup plc - Half-year Report
08/08/2022 07:00
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RNS Number : 1647V PageGroup plc 08 August 2022
8 August 2022
Half Year Results for the Period Ended 30 June 2022
Record Financial and Operational Performance
PageGroup plc ("PageGroup"), the specialist professional recruitment company,
announces its unaudited half year results for the period ended 30 June 2022.
Financial summary 2022 2021 Change Change CC*
(6 months to 30 June 2022)
Revenue £977.3m £766.4m +27.5% +28.1%
Gross profit £538.9m £404.2m +33.3% +33.3%
Operating profit £115.3m £64.3m +79.3% +79.4%
Profit before tax £114.5m £63.7m +79.8%
Basic earnings per share 25.6p 12.2p >100%
Diluted earnings per share 25.5p 12.1p >100%
Interim dividend per share 4.91p 4.70p
Special dividend per share 26.71p 26.71p
H1 Summary
· Group operating profit of £115.3m (H1 2021: £64.3m)
· Conversion rate** increased to 21.4% (H1 2021: 15.9%)
· Gross profit per fee earner up 9.2% on H1 2021 to £82.8k (H1
2021: £75.8k)
· Total headcount increased by 830 (10.6%) to 8,668 at the end of
June
· Strong Balance Sheet, with net cash of £136.2m (H1 2021:
£163.8m)
· Interim dividend up 4.5% to 4.91 pence per share, totalling
£15.6m
· Special dividend of 26.71 pence per share, totalling £84.9m
· Outlook unchanged: Full year operating profit expected to be in
line with company compiled consensus of £206m
* in constant currencies
** operating profit as a percentage of gross profit
Commenting, Steve Ingham, Chief Executive Officer, said:
"We achieved a strong H1 performance across our geographies, disciplines and
brands, and delivered Group operating profit up nearly 80% and an underlying
conversion rate*** of 22.1%. This was particularly pleasing given that 2021
had been a record year for gross profit and operating profit.
"This performance was achieved despite the backdrop of macro-economic and
geo-political uncertainty as well as continued COVID-19 restrictions in
certain markets. We believe that our strategy of maintaining and investing in
our platform throughout the pandemic by investing in experienced hires and
focusing on technology and innovation, has been key to us achieving these
outstanding results.
"Gross profit per fee earner, our measure of productivity, reached a new
record level, up 9% on H1 2021. The Group continued to benefit from favourable
trading conditions, including wage inflation and increased fee rates resulting
from the high demand and short supply of candidates, in addition to a shorter
time to hire facilitated by video interviewing and investments in new systems.
*** Underlying conversion rate is an alternative performance measure,
calculated as conversion rate (as defined above) excluding the one-off expense
of certain software licenses previously capitalised of c. £4m.
"We continued to invest in headcount, adding 652 fee earners (10.7%) during
the first half of the year. The largest headcount investments were made in the
markets where we saw the strongest growth and with the highest growth
potential, including Germany, the US and India. This investment has driven
record performances in four of our five large, high potential markets and both
of our high potential disciplines. Our operational support staff headcount
increased by 178 (10.1%) and our fee earner to support staff ratio remained at
78:22. The implementation of our global operating system, Customer Connect,
was completed in H1, with the final roll outs in France and Latin America.
"We are announcing today an interim dividend of 4.91 pence per share, an
increase of 4.5% over 2021. In addition, in line with our policy of returning
surplus capital to shareholders, we are also announcing a special dividend of
26.71 pence per share (2021: 26.71 pence per share) totalling £84.9m. Taking
these two dividend payments together, this amounts to a cash return to
shareholders of £100.5m. This is in addition to the 2021 final dividend paid
in June of £32.7m, meaning a total of £133.2m, or 41.92 pence per share,
returned to shareholders in 2022.
"Looking forward, we recognise the heightened degree of global macro-economic
and geo-political uncertainty, particularly with regards to increasing
inflation around the world. In July, we noted a slight slowing in time to hire
in some of our markets, and we continue to closely monitor our forward-looking
KPIs. However, at this point, our expectations for 2022 full year operating
profit remain in line with the company compiled consensus of £206m."
INTERIM MANAGEMENT REPORT
GROUP RESULTS
GROSS PROFIT £m Growth rates
% of Group H1 2022 H1 2021 Reported CC
EMEA 50% 266.7 203.5 +31.0% +34.9%
Asia Pacific 19% 102.0 81.8 +24.8% +21.9%
Americas 17% 94.2 61.3 +53.7% +44.1%
UK 14% 76.0 57.6 +31.9% +31.9%
Total 100% 538.9 404.2 +33.3% +33.3%
Permanent 78% 422.1 311.3 +35.6% +35.0%
Temporary 22% 116.8 92.9 +25.7% +27.5%
Revenue for the six months ended 30 June 2022 increased 27.5% to £977.3m
(2021: £766.4m) and gross profit increased 33.3% to £538.9m (2021:
£404.2m). In constant currencies, the Group's revenue increased 28.1% and
gross profit increased 33.3%. The Group's revenue mix between permanent and
temporary placements was 44:56 (2021: 41:59) and for gross profit was 78:22
(2021: 77:23). Revenue from temporary placements comprises the salaries of
those placed, together with the margin charged.
Fee earner productivity increased by 9.2% vs H1 2021 due to video interviewing
reducing time to hire, wage inflation and improvements in fee rates from
candidate shortages, alongside the strategic decisions and investments made by
the Group in recent years. This contributed to the strong business
performance, with gross profit increasing 33.3%, whilst fee earner headcount
has increased 23.7% from 5,443 in H1 2021 to 6,734 in H1 2022.
The Group's organic growth model and profit-based team bonus ensures costs
remain tightly controlled. 78% of first half costs were employee related,
including salaries, bonuses, share-based long-term incentives, and training
and relocation costs.
In total, administrative expenses in the first half increased 24.6% in
reported rates compared to 2021, to £423.6m (2021: £339.9m), driven largely
by the increase in headcount. In constant currencies, administrative expenses
were up 24.5% and operating profit increased by 79.4% to £115.3m (2021:
£64.3m), an increase of 79.3% at reported rates.
In the first half, the Group incurred costs of c. £4m relating to the one-off
expense of software licenses previously capitalised. We currently expect an
additional one-off cost of c. £3m in H2 relating to the consolidation of our
London offices.
The Group's conversion rate, which represents the ratio of operating profit to
gross profit, was 21.4% (2021: 15.9%) driven by the strong business
performance across all regions, as well as Q1 of the prior year still being
impacted by COVID-19 as well as the repayment of £3.4m of furlough monies to
HMRC. Excluding the one-off expense of software licenses previously
capitalised, as mentioned above, the Group's underlying H1 2022 conversion
rate was 22.1%.
OTHER ITEMS
Net interest expense of £0.8m was broadly consistent with H1 2021. The
effective tax rate for the first half was 28.8% (H1 2021: 39.4%), which is in
line with the 2021 full year effective tax rate of 29.0%.
For the six months ended 30 June 2022, basic earnings per share and diluted
earnings per share were 25.6p and 25.5p, respectively, representing growth of
more than 100% on 2021 (2021: basic earnings per share 12.2p; diluted earnings
per share 12.1p).
CASH FLOW
The Group started the year with net cash of £154.0m. In H1, £92.5m was
generated from operations due to strong trading conditions, offset by an
increase in debtors across both permanent and temporary recruitment. Tax paid
was £30.0m and net capital expenditure was £18.9m. During the first half,
£0.3m was received from exercises of share options (2021: £6.9m), £14.8m
was spent on the purchase of shares into the Employee Benefit Trust (2021:
£10.4m) and dividends of £32.7m were paid to shareholders. As a result, the
Group had net cash of £136.2m at 30 June 2022, compared with the prior year
of £163.8m.
CAPITAL ALLOCATION POLICY
It is the Directors' intention to continue to finance the activities and
development of the Group from retained earnings and to maintain a strong
balance sheet position.
The Group's first use of cash is to satisfy operational and investment
requirements, as well as to hedge its liabilities under the Group's share
plans. The level of cash required for this purpose will vary depending upon
the revenue mix of geographies, permanent and temporary recruitment, and point
in the economic cycle.
Our second use of cash is to make returns to shareholders by way of an
ordinary dividend. Our policy is to grow the ordinary dividend over the course
of the economic cycle in a way that we believe we can sustain the level of
ordinary dividend payment during downturns, as well as increasing it during
more prosperous times.
Cash generated in excess of these first two priorities will be returned to
shareholders through supplementary returns, using special dividends and/or
share buybacks.
The Board has announced an interim dividend of 4.91 pence per share, an
increase of 4.5% over last year. In addition, in line with our policy of
returning surplus capital to shareholders, the Group is pleased to announce
today a special dividend of 26.71 pence per share (2021: 26.71 pence per
share) totalling £84.9m. Taking these two dividend payments together, this
amounts to a cash return to shareholders of £100.5m. This is in addition to
the 2021 final dividend paid in June of £32.7m, meaning a total of £133.2m,
or 41.92 pence per share, returned to shareholders in 2022.
The special dividend will be paid, as in previous years, at the same time as
the interim dividend on 14 October 2022 to shareholders on the register as at
2 September 2022.
During the first half, the Group made purchases of £14.8m of shares into the
Employee Benefit Trust to hedge its exposure under the Group's share plans
(2021: £10.4m).
GEOGRAPHICAL ANALYSIS (All growth rates given below are in constant currency
vs. H1 2021 unless otherwise stated)
EUROPE, MIDDLE EAST AND AFRICA (EMEA)
EMEA £m Growth rates
(50% of Group in H1 2022) H1 2022 H1 2021 Reported CC
Gross Profit 266.7 203.5 +31.0% +34.9%
Operating Profit 65.3 35.9 +82.0% +87.8%
Conversion Rate (%) 24.5% 17.6%
EMEA is the Group's largest region, contributing 50% of Group first half gross
profit. Against 2021, in reported rates, revenue in the region increased 27.9%
to £523.0m (2021: £408.9m) and gross profit increased 31.0% to £266.7m
(2021: £203.5m). In constant currencies, revenue increased 31.6% on the first
half of 2021 and gross profit increased by 34.9%.
The improvement in trading conditions seen through 2021 continued in H1 2022,
and the region delivered a record first half. Against 2021, Michael Page grew
39%, whilst our more temporary focused Page Personnel business was up 28%.
France, 13% of the Group and around a quarter of the region, delivered record
gross profit, up 25% on 2021. Germany, the Group's third largest market, also
delivered a record first half, up 43%. This was driven by a standout
performance from our Technology focused Interim business, which grew 51%.
Southern Europe grew 40%, with Italy up 32% and Spain up 40%. Benelux was up
42% for the first half, with the Netherlands up 45% and Belgium up 36%. The
Middle East and Africa grew 21%.
Productivity for the first half was up 11.5% on 2021, to a new record level.
H1 operating profit was £65.3m (2021: £35.9m) with a conversion rate of
24.5% (2021: 17.6%). Profitability improved significantly on 2021 due to the
improvement in trading conditions, with Q1 2021 still being impacted by
COVID-19 restrictions. Headcount across the region increased by 368 (10.7%) in
the first half, to 3,815 at the end of June 2022 (3,447 at 31 December 2021).
ASIA PACIFIC
Asia Pacific £m Growth rates
(19% of Group in H1 2022) H1 2022 H1 2021 Reported CC
Gross Profit 102.0 81.8 +24.8% +21.9%
Operating Profit 20.9 15.3 +36.5% +33.6%
Conversion Rate (%) 20.5% 18.8%
In Asia Pacific, representing 19% of Group first half gross profit, revenue
increased 23.3% in reported rates to £159.3m (2021: £129.2m) and gross
profit increased 24.8% to £102.0m (2021: £81.8m), against 2021. In constant
currencies, revenue increased 21.1% in the first half and gross profit
increased by 21.9%.
Greater China overall grew 4%. In Mainland China, gross profit was flat on
2021, with the country being heavily impacted in H1 2022 by COVID-19 lockdowns
and restrictions, particularly in Q2. Hong Kong, which was also impacted by
COVID restrictions, grew 11% in H1. South East Asia, one of our Large High
Potential markets, delivered a record performance, up 42%. Singapore was up
24%, whilst the other five countries in the region grew 54%, collectively.
India delivered a record first half, up 61%, with strong growth across all
offices. Japan also delivered a record, growing 29%, with particularly strong
performances from both our contracting business and the Technology discipline.
Overall, for the first half, Australia grew 23%.
First half productivity was down slightly, by 1.1% on 2021, due to the tougher
trading conditions in Greater China. Operating profit increased to £20.9m
(2021: £15.3m) and our conversion rate increased to 20.5% (2021: 18.8%).
Despite the impact of COVID-19 lockdowns on Greater China in H1 2022, the
business performance remained strong and the conversion rate was only
marginally behind full year 2021 of 21.8%. Headcount across the region
increased by 133 in the first half (7.8%) to 1,842 at the end of June 2022
(1,709 at 31 December 2021).
THE AMERICAS
Americas £m Growth rates
(17% of Group in H1 2022) H1 2022 H1 2021 Reported CC
Gross Profit 94.2 61.3 +53.7% +44.1%
Operating Profit 13.8 8.8 +57.2% +39.9%
Conversion Rate (%) 14.7% 14.3%
In the Americas, representing 17% of Group first half gross profit, revenue
increased 33.8% in reported rates against 2021, to £137.3m (2021: £102.6m),
while gross profit increased 53.7% to £94.2m (2021: £61.3m). In constant
currencies against 2021, revenue increased by 26.3% and gross profit increased
by 44.1%.
North America delivered a record first half, with the US up 43%. Property and
Construction, our largest discipline in the US, delivered growth of 53%,
albeit against a weak comparator as H1 2021 was still recovering from
pre-pandemic levels. The US also saw strong growth in Technology and
Healthcare & Life Sciences.
For the first half, Latin America delivered a record performance, up 45%.
Mexico, our largest country in the region, grew 47% and Brazil grew 38%.
Elsewhere in Latin America, our other five countries in the region together
grew 49%.
Productivity in H1 increased 10.6% compared with H1 2021, with increases
across both North America and Latin America. Operating profit was £13.8m
(2021: £8.8m), with a conversion rate of 14.7% (2021: 14.3%). Trading
conditions were strong in the first half throughout the region, due primarily
to the increase in productivity. Our conversion rate was up marginally on H1
2021, with the productivity improvements largely offset by a significant
investment in headcount, up 252 (18.3%) in H1, to 1,633 at the end of June
2022 (1,381 at 31 December 2021).
UNITED KINGDOM
UK £m Growth rate
(14% of Group in H1 2022) H1 2022 H1 2021
Gross Profit 76.0 57.6 +31.9%
Operating Profit 15.3 4.3 >100%
Conversion Rate (%) 20.1% 7.5%
In the UK, representing 14% of Group first half gross profit, revenue
increased 25.4% vs. 2021 to £157.7m (2021: £125.7m) and gross profit
increased 31.9% to £76.0m (2021: £57.6m).
Our Michael Page business was up 24% in the first half. Page Personnel, which
operates at lower salary levels and had been slower to recover from the
pandemic, was up 62% and delivered a record month in June.
First half productivity increased significantly, up 16.8% on 2021. Operating
profit was £15.3m (2021: £4.3m) and our conversion rate was 20.1% (2021:
7.5%). This significant improvement was partially due to the one-off furlough
repayment of £3.4m to HMRC made in H1 2021. Excluding this one-off item, the
prior year conversion rate was 13.3%. The remaining increase was due to the
improved trading conditions. Headcount was up by 77 (5.9%) during the first
half to 1,378 at the end of June 2022 (1,301 at 31 December 2021).
KEY PERFORMANCE INDICATORS ("KPIs")
We measure our progress against our strategic objectives using the following
key performance indicators:
KPI Definition, method of calculation and analysis
Gross profit growth How measured: Gross profit represents revenue less cost of sales and consists
of the total placement fees of permanent candidates, the margin earned on the
placement of temporary candidates and the margin on advertising income, i.e.
it represents net fee income. The measure used is the increase or decrease in
gross profit as a percentage of the prior year gross profit.
Why it's important: The growth of gross profit relative to the previous year
is an indicator of the growth in net fees of the business as a whole. It
demonstrates whether we are in line with our strategy to grow the business.
How we performed in H1 2022: Trading conditions continued to be strong
throughout the first half of 2022 which resulted in record gross profit,
increasing +33.3% vs. H1 2021 in both reported rates and constant currencies.
Relevant strategic objective: Organic growth
Gross profit diversification How measured: Total gross profit from a) geographic regions outside the UK;
and b) disciplines outside of Accounting and Financial Services, each
expressed as a percentage of total gross profit.
Why it's important: These percentages give an indication of how the business
has diversified its revenue streams away from its historic concentrations in
the UK and from the Accounting and Financial Services discipline.
How we performed in H1 2022: Geographies: the percentage outside the UK was
broadly in line with 2021 at 85.9% (H1 2021: 85.7%).
Disciplines: the percentage outside of Accounting and Financial Services
increased to 68.8% (H1 2021: 67.8%), due to stronger growth in our other
disciplines such as Technology, Healthcare & Life Sciences and Digital.
Relevant strategic objective: Diversification
Ratio of gross profits 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 helps us to understand where we are in the
economic cycle, since the temporary market tends to be more resilient when the
economy is weak. However, in several of our core strategic markets, working in
a temporary role or as a contractor or interim employee is not currently
normal practice, for example in Mainland China.
How we performed in H1 2022: 78% of our gross profit was generated from
permanent placements, above the 77% in 2021. Double-digit growth was delivered
across both permanent and temporary recruitment, although permanent
recruitment growth was stronger, up 35.0%, compared with temporary
recruitment, up 27.5%, in constant currencies against 2021.
Relevant strategic objective: Organic growth
Gross profit per fee earner How measured: Gross profit for the year divided by the average number of fee
earners in the year.
Why it's important: This is a key indicator of productivity.
How we performed in H1 2022: Gross profit per fee earner of £82.8k was up
9.2% vs. 2021 in constant currencies. The improvement was driven by the strong
trading conditions, combined with video interviewing reducing time to hire,
wage inflation and improvements in fee rates from candidate shortages,
alongside the strategic decisions and investments made by the Group in recent
years.
Relevant strategic objective: Organic growth
Conversion rate How measured: Operating profit (EBIT) as a percentage of gross profit.
Why it's important: This demonstrates the Group's effectiveness at controlling
the costs and expenses associated with its normal business operations. It will
be impacted by the level of productivity and the level of investment for
future growth.
How we performed in H1 2022: Operating profit as a percentage of gross profit
increased to 21.4% compared to the prior year (H1 2021: 15.9%), driven by the
increased productivity, demonstrating the operational gearing in the business.
The comparative was also affected by weaker trading results in Q1, due to
COVID-19 continuing to impact many of the Group's markets and the repayment of
£3.4m of furlough to HMRC.
Relevant strategic objective: Sustainable growth
Basic earnings per share 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 overall profitability of the Group.
How we performed in H1 2022: Earnings per share (EPS) in H1 2022 was 25.6p, a
significant increase of over 100% on the 2021 EPS of 12.2p. The increase is
driven by the improved trading conditions.
Relevant strategic objective: Build for the long-term, organic growth
Fee-earner: operational support staff headcount ratio How measured: The percentage of fee-earners compared to operational support
staff at the period-end, expressed as a ratio.
Why it's important: This reflects the operational efficiency in the business
in terms of our ability to grow the revenue-generating platform at a faster
rate than the staff needed to support this growth.
How we performed in H1 2022: The ratio was 78:22 (H1 2021: 77:23). In line
with our strategy of maintaining and investing in our platform, we have added
a total of 652 fee earners in the first half of 2022. Our operational support
headcount rose by 178 in H1, and, as such, our ratio of fee earners to
operational support staff was maintained at the year-end ratio of 78:22.
Relevant strategic objective: Sustainable growth
Fee-earner headcount growth How measured: Number of fee-earners and directors involved in
revenue-generating activities at the period 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 expectations as to the
level of future demand above the existing capacity within the business.
How we performed in H1 2022: Net fee earner headcount increased by 652 in H1
2022, resulting in 6,734 fee earners at the end of June. We have continued to
invest in those markets and disciplines where we have seen the strongest
growth, including the markets of Germany, the USA and India, and the
disciplines of Technology, Healthcare & Life Sciences and Digital.
Relevant strategic objective: Sustainable growth
Net cash How measured: Cash and short-term deposits less bank overdrafts and loans.
Why it's important: The level of net cash is a key measure of our success in
managing our working capital and determines our ability to reinvest in the
business and to return cash to shareholders.
How we performed in H1 2022: Net cash at 30 June 2022 was £136.2m (H1 2021:
£163.8m). The 2022 balance is after the payment of the 2021 final dividend of
£32.7m. £0.3m was received from exercises of share options (H1 2021: £6.9m)
and £14.8m was spent on the purchase of shares into the Employee Benefit
Trust (H1 2021: £10.4m).
Relevant strategic objective: Build for the long-term
The source of data and calculation methods year-on-year are on a consistent
basis. The movements in KPIs are in line with expectations. Disclosure for GHG
emissions and People KPIs is provided annually.
PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the Group's strategy are
subject to a number of risks.
The main risks that PageGroup believes could potentially impact the Group's
operating and financial performance for the remainder of the financial year
remain those as set out in the Annual Report and Accounts for the year ending
31 December 2021 on pages 51 to 60.
TREASURY MANAGEMENT, BANK FACILITIES AND CURRENCY RISK
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 and UK business utilise the
notional cash pool and the Asia Pacific subsidiaries operate the interest
enhancement facility. The structures facilitate interest compensation for cash
whilst supporting working capital requirements.
The Group maintains a Confidential Invoice Facility with HSBC whereby the
Group has the option to discount receivables in order to advance cash. The
Group also has a Revolving Credit Facility with BBVA, expiring in May 2024,
with a total drawable amount of £30m. Neither of these facilities were in use
as at 30 June 2022. These facilities are used on an ad hoc basis to fund any
major Group sterling cash outflows.
The main functional currencies of the Group are Sterling, Euro, Chinese
Renminbi, US Dollar, Singapore Dollar, Hong Kong Dollar and Australian Dollar.
The Group does not have material transactional currency exposures. The Group
is exposed to foreign currency translation differences in accounting for its
overseas operations. The Group's policy is not to hedge translation exposures.
In certain cases, where the Group gives or receives short-term loans to and
from other Group companies that differ from the Group's reporting currency, it
may use short-dated foreign exchange swap derivative financial instruments to
manage the currency and interest rate exposure that arises on these loans.
ESG
Our ESG strategy drives purposeful impact today and will expand as our
businesses grow in the future. In April 2022, we published our second
sustainability report outlining progress towards our ten-year sustainability
vision, which includes ambitious targets. H1 2022 has delivered continued and
strong progress against all key targets.
From a social perspective, we continue to make progress towards our target of
changing over a million lives within ten years. The number of lives changed
each year continues to increase, through growing candidate placements along
with the expansion of PageGroup's social impact programmes such as webinars,
CV and interview writing workshops with charities.
From an environmental perspective, carbon emissions are likely to increase
year-on-year as our regular business activities, including travel, return
following the impacts of COVID-19. However, we remain focused on reducing our
emissions compared to pre-COVID levels and reaching operational net zero by
2026. We are retaining the lessons learnt during the pandemic, such as
conducting meetings and interviews virtually where appropriate. We continue to
transition our offices to renewable energy, provide electric options for
company cars and reduce waste.
For further information on our sustainability efforts, please refer to
https://www.page.com/sustainability (https://www.page.com/sustainability) .
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
interim financial statements to August 2023 (review period).
The Group had £136.2m of cash as at 30 June 2022, with no debt except for
IFRS 16 lease liabilities of £101.6m. Debt facilities relevant to the review
period comprise a committed £30m BBVA RCF (May 2024 maturity), an uncommitted
UK trade debtor discounting facility (up to £50m depending on debtor levels)
and an uncommitted £20m UK bank overdraft facility.
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 significant uncertainty over going concern. As a result, given the strength
of performance in H1, the level of cash in the business and Group's borrowing
facilities, the geographical and discipline diversification, limited
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 operational
existence for the period through to August 2023.
CAUTIONARY STATEMENT
This Interim Management Report ("IMR") has been prepared solely to provide
additional information to shareholders to assess the Group's strategies and
the potential for those strategies to succeed. The IMR should not be relied on
by any other party or for any other purpose. This IMR 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.
This IMR has been prepared for the Group as a whole and therefore gives
greater emphasis to those matters that are significant to PageGroup plc and
its subsidiary undertakings when viewed as a whole.
Page House
Bourne Business Park
200 Dashwood Lang Road
Addlestone
Weybridge
Surrey
KT15 2NX
By order of the Board,
Steve Ingham Kelvin Stagg
Chief Executive Officer Chief Financial Officer
5 August 2022 5 August 2022
PageGroup will host a conference call, with on-line slide presentation, for
analysts and investors at 9.00am on 8 August 2022, the details of which are
below.
Link:
https://www.investis-live.com/pagegroup/62d6a3b8299ad30e00dd0fe1/pgir
(https://protect-eu.mimecast.com/s/eGXmCOyA7Up6AnNGtEeMDb?domain=investis-live.com)
Please use the following dial-in number to join the conference:
United Kingdom (Local) 020 3936 2999
All other locations +44 20 3936 2999
Please quote participant access code 50 35 42 to gain access to the call.
A presentation and recording to accompany the call will be posted on the
PageGroup website during the course of the morning of 8 August 2022 at:
https://www.page.com/presentations/year/2022
(https://www.page.com/presentations/year/2022)
Enquiries:
PageGroup +44 (0)20 3077 8425
Steve Ingham, Chief Executive Officer
Kelvin Stagg, Chief Financial Officer
FTI Consulting +44 (0)20 3727 1340
Richard Mountain / Susanne Yule
INDEPENDENT REVIEW REPORT TO PAGEGROUP PLC
Conclusion
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2022 which comprises the Condensed Consolidated Income Statement, the
Condensed Consolidated Statement of Comprehensive Income, the Condensed
Consolidated Balance Sheet, the Condensed Consolidated Statement of Changes in
Equity, the Condensed Consolidated Statement of Cash Flows and the related
notes 1 to 13. We have read the other information contained in the half yearly
financial report and considered whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed set of
financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2022 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis of Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
London
5 August 2022
Condensed Consolidated Income Statement
For the six months ended 30 June 2022
Six months ended Year ended
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Revenue 3 977,257 766,412 1,643,740
Cost of sales (438,354) (362,228) (766,020)
Gross profit 3 538,903 404,184 877,720
Administrative expenses (423,586) (339,855) (709,210)
Operating profit 3 115,317 64,329 168,510
Financial income 4 392 194 290
Financial expenses 4 (1,212) (850) (2,155)
Profit before tax 3 114,497 63,673 166,645
Income tax expense 5 (33,000) (25,062) (48,289)
Profit for the period 81,497 38,611 118,356
Attributable to:
Owners of the parent 81,497 38,611 118,356
Earnings per share
Basic earnings per share (pence) 8 25.6 12.2 37.2
Diluted earnings per share (pence) 8 25.5 12.1 37.0
The above results all relate to continuing operations
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2022
Six months ended Year ended
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit for the period 81,497 38,611 118,356
Other comprehensive income/(loss) for the period
Items that may subsequently be reclassified to profit and loss:
Currency translation differences 10,968 (7,221) (8,423)
Total comprehensive income for the period 92,465 31,390 109,933
Attributable to:
Owners of the parent 92,465 31,390 109,933
Condensed Consolidated Balance Sheet
As at 30 June 2022
30 June Re-presented 31 December
30 June
2022 2021 2021
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Non-current assets
Property, plant and equipment 9 33,251 23,294 24,836
Right-of-use assets 93,188 83,795 94,956
Intangible assets - Goodwill and other intangible 2,036 2,082 2,065
- Computer software 42,740 43,522 47,100
Deferred tax assets 19,941 17,927 19,659
Other receivables 10 12,989 11,374 12,849
204,145 181,994 201,465
Current assets
Trade and other receivables 10 441,274 305,700 355,797
Current tax receivable 22,048 23,761 13,214
Cash and cash equivalents 13 136,227 163,758 153,983
599,549 493,219 522,994
Total assets 3 803,694 675,213 724,459
Current liabilities
Trade and other payables 11 (256,958) (197,704) (230,382)
Provisions 12 (2,236) (2,412) (6,755)
Lease liabilities (29,746) (30,157) (30,125)
Current tax payable (32,785) (18,724) (22,241)
(321,725) (248,997) (289,503)
Net current assets 277,824 244,222 233,491
Non-current liabilities
Other payables 11 (13,883) (6,332) (18,332)
Lease liabilities (71,878) (60,875) (72,215)
Deferred tax liabilities (1,475) (5,953) (354)
Provisions 12 (7,443) (6,881) (3,950)
(94,679) (80,041) (94,851)
Total liabilities 3 (416,404) (329,038) (384,354)
Net assets 387,290 346,175 340,105
Capital and reserves
Called-up share capital 3,286 3,286 3,286
Share premium 99,564 99,564 99,564
Capital redemption reserve 932 932 932
Reserve for shares held in the employee benefit trust (56,875) (52,683) (47,338)
Currency translation reserve 27,865 18,099 16,897
Retained earnings 312,518 276,977 266,764
Total equity 387,290 346,175 340,105
The Balance Sheet has been re-presented to provide separate disclosure for
provisions within current and non-current liabilities which were previously
disclosed within accruals. Further information is disclosed in Note 2.
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2022
Reserve
for shares
Called-up Capital held in the Currency
share Share redemption employee translation Retained Total
capital premium reserve benefit trust reserve earnings equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2021 3,286 99,564 932 (55,498) 25,320 242,297 315,901
Currency translation differences - - - - (7,221) - (7,221)
Net expense recognised directly in equity - - - - (7,221) - (7,221)
Profit for the six months ended 30 June 2021 - - - - - 38,611 38,611
Total comprehensive (expense)/income for the period - - - - (7,221) 38,611 31,390
Purchase of shares held in the employee benefit trust - - - (10,369) - - (10,369)
Exercise of share plans - - - - - 6,938 6,938
Reserve transfer when shares held in the employee benefit trust vest - - - 13,184 - (13,184) -
Credit in respect of share schemes - - - - - 2,447 2,447
Debit in respect of tax on share schemes - - - - - (132) (132)
- - - 2,815 - (3,931) (1,116)
Balance at 30 June 2021 3,286 99,564 932 (52,683) 18,099 276,977 346,175
Currency translation differences - - - - (1,202) - (1,202)
Net expense recognised directly in equity - - - - (1,202) - (1,202)
Profit for the six months ended 31 December 2021 - - - - - 79,745 79,745
Total comprehensive (expense)/income for the period - - - - (1,202) 79,745 78,543
Exercise of share plans - - - - - 9,493 9,493
Reserve transfer when shares held in the employee benefit trust vest - - - 5,345 - (5,345) -
Credit in respect of share schemes - - - - - 4,605 4,605
Credit in respect of tax on share schemes - - - - - 1,519 1,519
Dividends - - - - - (100,230) (100,230)
- - - 5,345 - (89,958) (84,613)
Balance at 31 December 2021 3,286 99,564 932 (47,338) 16,897 266,764 340,105
Balance at 1 January 2022 3,286 99,564 932 (47,338) 16,897 266,764 340,105
Currency translation differences - - - - 10,968 - 10,968
Net income recognised directly in equity - - - - 10,968 - 10,968
Profit for the six months ended 30 June 2022 - - - - - 81,497 81,497
Total comprehensive income for the period - - - - 10,968 81,497 92,465
Purchase of shares held in employee benefit trust - - - (14,837) - - (14,837)
Exercise of share plans - - - - - 276 276
Reserve transfer when shares held in the employee benefit trust vest - - - 5,300 - (5,300) -
Credit in respect of share schemes - - - - - 2,922 2,922
Debit in respect of tax on share schemes - - - - - (901) (901)
Dividends - - - - - (32,740) (32,740)
- - - (9,537) - (35,743) (45,280)
Balance at 30 June 2022 3,286 99,564 932 (56,875) 27,865 312,518 387,290
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2022
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Note
Profit before tax 114,497 63,673 166,645
Depreciation, amortisation charges and expense of computer software 33,519 26,238 53,728
Loss/(profit) on sale of property, plant and equipment 43 21 (59)
Share scheme charges 2,923 2,447 7,052
Net finance costs 820 656 1,864
Operating cash flow before changes in working capital 151,802 93,035 229,230
Increase in receivables (71,612) (59,840) (115,318)
Increase in payables 12,309 23,519 72,372
Cash generated from operations 92,499 56,714 186,284
Income tax paid (30,023) (21,830) (37,046)
Net cash from operating activities 62,476 34,884 149,238
Cash flows from investing activities
Purchases of property, plant and equipment (12,723) (2,688) (10,233)
Purchases and capitalisation of intangible assets (6,558) (8,923) (18,130)
Proceeds from the sale of property, plant and equipment, and computer software 336 906 2,629
Interest received 392 194 290
Net cash used in investing activities (18,553) (10,511) (25,444)
Cash flows from financing activities
Dividends paid (32,740) - (100,230)
Interest paid (527) (183) (841)
Lease liability repayment (17,047) (18,719) (37,026)
Issue of own shares for the exercise of options 276 6,938 16,431
Purchase of shares into the employee benefit trust (14,837) (10,369) (10,369)
Net cash used in financing activities (64,875) (22,333) (132,035)
Net (decrease)/increase in cash and cash equivalents (20,952) 2,040 (8,241)
Cash and cash equivalents at the beginning of the period 153,983 165,987 165,987
Exchange gain/(loss) on cash and cash equivalents 3,196 (4,269) (3,763)
Cash and cash equivalents at the end of the period 13 136,227 163,758 153,983
Notes to the condensed set of interim results
For the six months ended 30 June 2022
1. General information
The information for the year ended 31 December 2021 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.
The unaudited interim condensed consolidated financial statements of PageGroup
plc and its subsidiaries (collectively, the Group) for the six months ended 30
June 2022 were authorised for issue in accordance with a resolution of the
directors on 5 August 2022.
2. Accounting policies
Basis of preparation
The unaudited interim condensed consolidated financial statements for the six
months ended 30 June 2022 have been prepared in accordance with UK adopted IAS
34 'Interim financial reporting' and with the Disclosure Guidance 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 2021, were
approved by the directors on 3 March 2022. The interim condensed
consolidated financial statements should be read in conjunction with the
Annual Report and Accounts for the year ended 31 December 2021, which have
been prepared in accordance with UK-adopted international accounting standards
("IFRSs").
It is the Directors' view that provisions are sufficiently material to be
separately disclosed within the balance sheet, where in previous years these
were disclosed within accruals. Accordingly, comparatives have been
represented on a consistent basis. No third balance sheet is presented
because the representation at the beginning of the comparative period is not
considered material. There is no impact on the income statement, cashflow or
net assets in the balance sheet as a result of this representation.
As a result, the balance sheet for June 2021 includes provisions of £9.3m and
an associated reduction in accruals.
Refer to Note 12 for disclosures in accordance with IAS 37.
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
interim financial statements to August 2023 (review period).
The Group had £136.2m of cash as at 30 June 2022, with no debt except for
IFRS 16 lease liabilities of £101.6m. Debt facilities relevant to the review
period comprise a committed £30m BBVA RCF (May 2024 maturity), an uncommitted
UK trade debtor discounting facility (up to £50m depending on debtor levels)
and an uncommitted £20m UK bank overdraft facility.
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 would cause an issue. As a
result, given the strength of performance in H1, the level of cash in the
business and Group's borrowing facilities, the geographical and discipline
diversification, limited 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 operational existence for the period through to August 2023.
New accounting standards, interpretations and amendments adopted by the Group
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
2022 2021 2021 2022 2021 2021
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 522,981 408,874 869,574 266,683 203,531 431,960
Asia Pacific 159,329 129,170 282,008 102,046 81,762 179,296
Americas 137,302 102,647 220,671 94,188 61,285 138,520
United Kingdom 157,645 125,721 271,487 75,986 57,606 127,944
977,257 766,412 1,643,740 538,903 404,184 877,720
Operating Profit
Six months ended Year ended
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
EMEA 65,283 35,862 93,435
Asia Pacific 20,952 15,347 39,004
Americas 13,822 8,793 19,163
United Kingdom 15,260 4,327 16,908
Operating profit 115,317 64,329 168,510
Financial expense (820) (656) (1,865)
Profit before tax 114,497 63,673 166,645
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. Intangible Assets include 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
2022 2021 2021 2022 2021 2021
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 315,833 231,607 285,573 210,853 159,076 201,748
Asia Pacific 142,008 113,690 132,995 64,930 50,776 64,405
Americas 115,299 78,928 94,581 47,642 39,615 43,789
United Kingdom 208,506 227,227 198,096 60,194 60,847 52,171
Segment assets/liabilities 781,646 651,452 711,245 383,619 310,314 362,113
Income tax 22,048 23,761 13,214 32,785 18,724 22,241
803,694 675,213 724,459 416,404 329,038 384,354
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
2022 2021 2021 2022 2021 2021
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 12,730 9,186 10,571 2,197 2,399 2,247
Asia Pacific 6,383 3,954 4,318 172 274 279
Americas 7,542 5,504 5,325 6 2 -
United Kingdom 6,596 4,650 4,622 42,401 42,929 46,639
33,251 23,294 24,836 44,776 45,604 49,165
Right-of-use Assets Lease Liabilities
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2022 2021 2021 2022 2021 2021
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 52,621 42,211 54,413 56,130 44,841 57,143
Asia Pacific 16,493 12,904 16,132 17,509 13,583 17,154
Americas 10,072 12,637 10,692 12,943 15,369 13,432
United Kingdom 14,002 16,043 13,719 15,042 17,239 14,611
93,188 83,795 94,956 101,624 91,032 102,340
The below analyses in notes (c) and (d) relates to the requirement of IFRS 15
to disclose disaggregated revenue streams.
(c) 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
2022 2021 2021 2022 2021 2021
£'000 £'000 £'000 £'000 £'000 £'000
Permanent 426,975 315,079 682,233 422,133 311,320 676,099
Temporary 550,282 451,333 961,507 116,770 92,864 201,621
977,257 766,412 1,643,740 538,903 404,184 877,720
(d) Revenue generated from permanent and temporary placements by
reportable segment
Permanent Temporary
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2022 2021 2021 2022 2021 2021
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 192,132 144,845 303,762 330,849 264,029 565,812
Asia Pacific 89,854 71,891 158,329 69,475 57,279 123,679
Americas 84,974 54,912 123,545 52,328 47,735 97,126
United Kingdom 60,015 43,431 96,597 97,630 82,290 174,890
426,975 315,079 682,233 550,282 451,333 961,507
The below analyses in notes (e) revenue and gross profit by discipline (being
the professions of candidates placed) and (f) revenue and gross profit by
strategic market have 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
Six months ended Year ended Six months ended Year ended
30 June 30 June 31 December 30 June 30 June 31 December
2022 2021 2021 2022 2021 2021
£'000 £'000 £'000 £'000 £'000 £'000
Accounting and Financial Services 354,229 289,822 609,012 168,391 130,208 281,549
Legal, Technology, HR, Secretarial and Other 321,332 230,847 511,466 167,871 117,411 260,819
Engineering, Property & Construction, Procurement & Supply Chain 199,154 165,156 349,770 126,735 96,869 207,200
Marketing, Sales and Retail 102,542 80,587 173,492 75,906 59,696 128,152
977,257 766,412 1,643,740 538,903 404,184 877,720
(f) Revenue and gross profit by strategic market
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
2022 2021 2021 2022 2021 2021
£'000 £'000 £'000 £'000 £'000 £'000
Large, Proven markets 505,917 411,453 867,634 245,429 190,996 406,618
Large, High Potential markets 334,214 251,418 551,547 208,007 149,387 332,539
Small and Medium, High Margin markets 137,126 103,541 224,559 85,467 63,801 138,563
977,257 766,412 1,643,740 538,903 404,184 877,720
4. Financial income / (expenses)
Six months ended Year ended
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Financial income
Bank interest receivable 392 194 290
Financial expenses
Bank interest payable (527) (183) (841)
Interest on lease liabilities (685) (667) (1,314)
(1,212) (850) (2,155)
5. Income tax expense
Taxation for the six month period is charged at 28.8% (six months ended 30
June 2021: 39.4%; year ended 31 December 2021: 29.0%), representing the best
estimate of the average annual effective tax rate expected for the full year
together with known prior year adjustments applied to the pre-tax income for
the six month period.
6. Dividends
Six months ended Year ended
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended 31 December 2021 of 10.30p per ordinary 32,740 - -
share (2020: 0p)
Interim dividend for the period ended 30 June 2021 of 0p per ordinary share - - 14,998
(2020: 4.70p)
Special dividend for the year ended 31 December 2021 of 0p per ordinary share - - 85,232
(2020: 26.71p)
32,740 - 100,230
Amounts proposed as distributions to equity holders in the period:
Proposed interim dividend for the period ended 30 June 2022 of 4.91p per 15,607 14,957 -
ordinary share (2021: 4.70p)
Proposed special dividend for the year ended 31 December 2022 of 26.71p per 84,900 85,000 -
ordinary share (2021: 26.71p)
Proposed final dividend for the year ended 31 December 2021 of 10.30p per - - 32,912
ordinary share
The proposed interim and special dividends have not been approved by the Board
at 30 June 2022 and therefore have not been included as a liability. The
comparative interim and special dividends at 30 June 2021 were also not
recognised as a liability in the prior period.
The proposed interim dividend of 4.91p (2021: 4.70p) per ordinary share and
special dividend of 26.71p (2021: 26.71p) per ordinary share will be paid on
14 October 2022 to shareholders on the register at the close of business on 2
September 2022.
7. Share-based payments
In accordance with IFRS 2 "Share-based Payment", a charge of £2.1m has been
recognised for share options and other share-based payment arrangements
(including social charges) (30 June 2021: £3.4m, 31 December 2021: £7.8m).
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 2022 2021 2021
Earnings for basic and diluted earnings per share (£'000) 81,497 38,611 118,356
Number of shares
Weighted average number of shares used for basic earnings per share ('000) 318,473 317,383 318,237
Dilution effect of share plans ('000) 843 859 1,232
Diluted weighted average number of shares used for diluted earnings per share 319,316 318,242 319,469
('000)
Basic earnings per share (pence) 25.6 12.2 37.2
Diluted earnings per share (pence) 25.5 12.1 37.0
The above results all relate to continuing operations.
9. Property, plant and equipment
Acquisitions
During the period ended 30 June 2022 the Group acquired property, plant and
equipment with a cost of £12.7m (30 June 2021: £2.7m).
10. Trade and other receivables
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Current
Trade receivables 306,557 217,500 265,727
Less allowance for expected credit losses and revenue reversals (12,361) (9,930) (11,086)
Net trade receivables 294,196 207,570 254,641
Other receivables 4,658 3,720 7,018
Accrued income 112,994 77,449 81,186
Prepayments 29,426 16,961 12,952
441,274 305,700 355,797
Non-current
Other receivables 12,989 11,374 12,849
11. Trade and other payables
30 June Re-presented 31 December
30 June
2022 2021 2021
£'000 £'000 £'000
Current
Trade payables 5,023 3,949 5,908
Other tax and social security 45,368 29,406 46,946
Other payables 35,847 44,357 34,698
Accruals 170,720 119,992 142,830
256,958 197,704 230,382
Non-current
Accruals 13,883 6,332 16,310
Other tax and social security - - 2,022
13,883 6,332 18,332
12. Provisions
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Dilapidations 7,212 6,206 6,967
NI on share schemes 954 2,059 2,343
Other 1,513 1,028 1,395
9,679 9,293 10,705
Current 2,236 2,412 6,755
Non-Current 7,443 6,881 3,950
9,679 9,293 10,705
13. Cash and cash equivalents
30 June 30 June 31 December
2022 2021 2021
£'000 £'000 £'000
Cash at bank and in hand 136,227 79,550 153,983
Short-term deposits - 84,208 -
Cash and cash equivalents 136,227 163,758 153,983
Cash and cash equivalents in the statement of cash flows 136,227 163,758 153,983
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.
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 UK adopted 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
5 August 2022
Copies of the condensed interim financial statements are now available and can
be downloaded from the Company's website:
https://www.page.com/presentations/year/2022
(https://www.page.com/presentations/year/2022)
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