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RNS Number : 4238I PageGroup plc 07 August 2023
7 August 2023
Half Year Results for the Period Ended 30 June 2023
PageGroup plc ("PageGroup"), the specialist professional recruitment company,
announces its unaudited half year results for the period ended 30 June 2023.
Financial summary 2023 2022 Change Change CC*
(6 months to 30 June 2023)
Revenue £1,033.9m £977.3m +5.8% +3.6%
Gross profit £526.8m £538.9m -2.2% -4.4%
Operating profit £63.9m £115.3m -44.6% -47.5%
Profit before tax £63.3m £114.5m -44.7%
Basic earnings per share 13.6p 25.6p -46.9%
Diluted earnings per share 13.6p 25.5p -46.7%
Interim dividend per share 5.13p 4.91p
Special dividend per share 15.87p 26.71p
H1 Summary
· Group operating profit of £63.9m (H1 2022: £115.3m)
· Conversion rate** decreased to 12.1% (H1 2022: 21.4%)
· Gross profit per fee earner down 5.8% on H1 2022 to £79.7k (H1
2022: £82.8k)
· Total headcount decreased by 448 (5.0%) to 8,572 at the end of
June
· Strong Balance Sheet, with net cash of £97.9m (H1 2022:
£136.2m)
· Interim dividend up 4.5% to 5.13 pence per share, totalling
£16.2m
· Special dividend of 15.87 pence per share, totalling £50.0m
· Outlook unchanged: Full year operating profit expected to be in
line with previous guidance
* in constant currencies
** operating profit as a percentage of gross profit
Commenting, Nicholas Kirk, Chief Executive Officer, said:
"The Group delivered a robust H1 performance against a record first half in
2022. EMEA delivered the standout result, delivering record H1 gross profit
against a particularly strong comparator across the region. However, tough
market conditions continued in Asia, the UK and the US. Overall, Group gross
profit declined 4.4% in constant currencies against H1 2022. We delivered
Group operating profit of £63.9m at a conversion rate of 12.1%, compared with
21.4% in H1 2022.
"The challenging conditions we saw towards the end of 2022 continued into H1
2023, with lower levels of both candidate and client confidence resulting in
delays in decision making and candidates being more reluctant to accept
offers. Reflecting the uncertain macro-economic conditions, temporary
recruitment outperformed permanent, as clients sought more flexible options.
In line with these conditions, we reduced our fee earner headcount by 558
(-8.0%) in the first half, with reductions in all regions. Our total headcount
of 8,572 is 448 (-5.0%) lower than at the end of 2022. Productivity, measured
as gross profit per fee earner, declined 5.8%, reflecting the reduction in
gross profit, although this was partially offset by the decrease in headcount.
"We are announcing today an interim dividend of 5.13 pence per share, an
increase of 4.5% over 2022. In addition, in line with our policy of returning
surplus capital to shareholders, we are also announcing a special dividend of
15.87 pence per share (2022: 26.71 pence per share) totalling £50.0m. Taking
these two dividend payments together, this amounts to a cash return to
shareholders of £66.2m. This is in addition to the 2022 final dividend paid
in June of £33.9m, resulting in a total return to shareholders in 2023 of
£100.1m, or 31.76 pence per share.
"Looking forward, there remains a high level of global macro-economic and
political uncertainty in the majority of our markets. However, against this
backdrop, we continue to see candidate shortages and good levels of vacancies,
as well as continued high fee rates. We are also seeing the benefits from our
investments in innovation and technology, where Customer Connect is supporting
productivity and enhancing customer experience and Page Insights is providing
real time data to inform business decisions. 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.
Given these fundamental strengths, we believe we will continue to perform well
despite the uncertainty. At this stage of the year, the Board expects 2023
operating profit to be in line with our previous guidance."
INTERIM MANAGEMENT REPORT
GROUP RESULTS
GROSS PROFIT £m Growth rates
% of Group H1 2023 H1 2022 Reported CC
EMEA 55% 288.4 266.7 +8.1% +4.3%
Americas 17% 89.1 94.2 -5.5% -8.2%
Asia Pacific 16% 83.4 102.0 -18.3% -17.3%
UK 12% 65.9 76.0 -13.2% -13.2%
Total 100% 526.8 538.9 -2.2% -4.4%
Permanent 74% 392.2 422.1 -7.1% -9.1%
Temporary 26% 134.6 116.8 +15.3% +12.5%
Revenue for the six months ended 30 June 2023 increased 5.8% to £1,033.9m
(2022: £977.3m) and gross profit decreased 2.2% to £526.8m (2022: £538.9m).
In constant currencies, the Group's revenue increased 3.6% and gross profit
decreased 4.4%. The Group's revenue mix between permanent and temporary
placements was 38:62 (2022: 44:56) and for gross profit was 74:26 (2022:
78:22). Revenue from temporary placements comprises the salaries of those
placed, together with the margin charged.
Fee earner productivity decreased by 5.8% vs H1 2022 due to reduced levels of
candidate and client confidence resulting in an increase in time to hire, as
well as some reluctance to accept offers, limiting the number of placements
per fee earner.
The Group's organic growth model and profit-based team bonus ensures costs
remain tightly controlled. 77% 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 9.3% in reported
rates to £462.9m (2022: £423.6m), driven largely by the higher average
headcount in H1 2023 compared to H1 2022 and inflation. In constant
currencies, administrative expenses were up 7.3% and operating profit
decreased by 47.5% to £63.9m (2022: £115.3m), a decrease of 44.6% at
reported rates. The Group's conversion rate, which represents the ratio of
operating profit to gross profit, was 12.1% (2022: 21.4%) driven by the more
challenging trading conditions in 2023, combined with higher costs.
OTHER ITEMS
Net interest expense of £0.5m was broadly consistent with H1 2022 (£0.8m).
The effective tax rate for the first half was 31.9% (H1 2022: 28.8%), with the
increase on the prior year due to the change in the UK tax rate from 19% to
25% from April 2023.
For the six months ended 30 June 2023, basic earnings per share and diluted
earnings per share were both 13.6p, representing a decrease of 47% on 2022
(2022: basic earnings per share 25.6p; diluted earnings per share 25.5p).
CASH FLOW
The Group started the year with net cash of £131.5m. In H1, £83.7m was
generated from operations due to H1 Operating Profit as well a net outflow of
working capital due to the stronger performance in temporary recruitment. Tax
paid was £27.3m and net capital expenditure was £11.3m. During the first
half, £0.8m was received from exercises of share options (2022: £0.3m),
£17.5m was spent on the purchase of shares into the Employee Benefit Trust
(2022: £14.8m) and dividends of £33.9m were paid to shareholders (2022:
£32.7m). As a result, the Group had net cash of £97.9m at 30 June 2023 (30
June 2022: £136.2m).
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 5.13 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 15.87 pence per share (2022: 26.71 pence per
share) totalling £50.0m. Taking these two dividend payments together, this
amounts to a cash return to shareholders of £66.2m. This is in addition to
the 2022 final dividend paid in June of £33.9m, meaning a total of £100.1m,
or 31.76 pence per share, returned to shareholders in 2023.
The special dividend will be paid, as in previous years, at the same time as
the interim dividend on 13 October 2023 to shareholders on the register as at
1 September 2023.
During the first half, the Group made purchases of £17.5m of shares into the
Employee Benefit Trust to hedge its exposure under the Group's share plans
(2022: £14.8m).
GEOGRAPHICAL ANALYSIS (All growth rates given below are in constant currency
vs. H1 2022 unless otherwise stated)
EUROPE, MIDDLE EAST AND AFRICA (EMEA)
EMEA £m Growth rates
(55% of Group in H1 2023) H1 2023 H1 2022 Reported CC
Revenue 580.5 523.0 +11.0% +6.9%
Gross Profit 288.4 266.7 +8.1% +4.3%
Operating Profit 47.8 65.3 -26.8% -29.8%
Conversion Rate (%) 16.6% 24.5%
EMEA is the Group's largest region, contributing 55% of Group first half gross
profit. Against 2022, in reported rates, revenue in the region increased 11.0%
to £580.5m (2022: £523.0m) and gross profit increased 8.1% to £288.4m
(2022: £266.7m). In constant currencies, revenue increased 6.9% on the first
half of 2022 and gross profit increased by 4.3%.
The region was our strongest performing in H1 2023, delivering record gross
profit against a particularly tough comparator. Against 2022, gross profit in
Michael Page grew 3%, whilst our more temporary focused Page Personnel
business was up 6%. France, 14% of Group gross profit and around a quarter of
the region, delivered record gross profit against a very tough comparator, up
2% on 2022. Germany, the Group's second largest market, also delivered a
record first half, up 9%. This was driven by strong performances from both our
Page Personnel and our Technology focused Interim businesses, which grew 21%
and 22%, respectively. Southern Europe grew 3%, with Italy down 1% and Spain
up 1%. Benelux was up 4% for the first half, with the Netherlands down 1%
whilst Belgium grew 15%. The Middle East and Africa grew 20%, a record H1,
driven largely by a record performance in the UAE.
Productivity for the first half was down 4.3% on the record levels achieved in
H1 2022, with total headcount up 220 (5.8%) versus Q2 2022. H1 operating
profit was £47.8m (2022: £65.3m) with a conversion rate of 16.6% (2022:
24.5%). Profitability decreased on 2022 due the reduction in productivity,
combined with the higher cost base. Headcount across the region decreased by
50 (1.2%) in the first half, to 4,035 at the end of June 2023 (4,085 at 31
December 2022).
THE AMERICAS
Americas £m Growth rates
(17% of Group in H1 2023) H1 2023 H1 2022 Reported CC
Revenue 151.0 137.3 +10.0% +8.3%
Gross Profit 89.1 94.2 -5.5% -8.2%
Operating Profit 5.9 13.8 -57.1% -70.9%
Conversion Rate (%) 6.7% 14.7%
In the Americas, representing 17% of Group first half gross profit, revenue
increased 10.0% in reported rates against 2022, to £151.0m (2022: £137.3m),
while gross profit declined 5.5% to £89.1m (2022: £94.2m). In constant
currencies against 2022, revenue increased by 8.3% and gross profit declined
8.2%.
North America declined against 2022, a record comparator, with the US down
16%. Conditions remained tough throughout the first half, as uncertainty
around market conditions impacted candidate and client confidence, and we
experienced a higher level of candidate buybacks.
Latin America delivered growth of 4%. Mexico, our largest country in the
region, declined 6% and Brazil declined 11%. Elsewhere in Latin America, our
other five countries in the region grew 24%, collectively, with Argentina,
Colombia and Panama all delivering record first halves.
For the region overall, productivity in H1 decreased 3.6% compared with H1
2022, with North America down 9% and Latin America up 7%. Operating profit was
£5.9m (2022: £13.8m), with a conversion rate of 6.7% (2022: 14.7%). Our
conversion rate was down on H1 2022, due to the lower productivity and higher
cost base. Headcount across the region decreased by 190 (11.3%) in H1, to
1,500 at the end of June 2023 (1,690 at 31 December 2022).
ASIA PACIFIC
Asia Pacific £m Growth rates
(16% of Group in H1 2023) H1 2023 H1 2022 Reported CC
Revenue 149.8 159.3 -6.0% -4.7%
Gross Profit 83.4 102.0 -18.3% -17.3%
Operating Profit 4.5 20.9 -78.7% -75.9%
Conversion Rate (%) 5.3% 20.5%
In Asia Pacific, representing 16% of Group first half gross profit, revenue
decreased 6.0% in reported rates to £149.8m (2022: £159.3m) and gross profit
decreased 18.3% to £83.4m (2022: £102.0m), against 2022. In constant
currencies, revenue decreased 4.7% in H1 and gross profit decreased 17.3%.
Gross profit in Greater China declined 37%. In Mainland China, gross profit
was down 42% on 2022, due to the slower than anticipated recovery following
the lifting of COVID restrictions during H1. Hong Kong declined 28%. South
East Asia declined 18%, with Singapore down 22%, whilst the other five
countries in the region declined 17%, collectively. India grew 3% and
delivered a record H1, against a very strong comparator. Overall, for the
first half, Japan declined 3% and Australia declined 2%.
First half productivity was down 13.6% on 2022, due to the continued
challenging trading conditions across the region. We delivered £4.5m of
operating profit (2022: £20.9m) at a conversion rate of 5.3% (2022: 20.5%),
significantly behind the comparative period due to the much tougher trading
conditions. Headcount across the region decreased by 111 in the first half
(6.0%) to 1,731 at the end of June 2023 (1,842 at 31 December 2022).
UNITED KINGDOM
UK £m Growth rate
(12% of Group in H1 2023) H1 2023 H1 2022
Revenue 152.5 157.7 -3.2%
Gross Profit 65.9 76.0 -13.2%
Operating Profit 5.7 15.3 -62.9%
Conversion Rate (%) 8.6% 20.1%
In the UK, representing 12% of Group first half gross profit, revenue
decreased 3.2% vs. 2022 to £152.5m (2022: £157.7m) and gross profit declined
13.2% to £65.9m (2022: £76.0m).
Gross profit in our Michael Page business was down 17% in the first half. Page
Personnel, which operates at lower salary levels with a higher degree of
temporary recruitment, was down 5%.
First half productivity was down 8.5% on the prior year, with H1 2022 being at
record levels. Operating profit was £5.7m (2022: £15.3m) and our conversion
rate was 8.6% (2022: 20.1%). This weaker conversion rate was due primarily to
the more challenging trading conditions, combined with a higher cost base than
in the prior year. Headcount was down 97 (6.9%) during the first half to 1,307
at the end of June 2023 (1,404 at 31 December 2022).
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 2023: Trading conditions continued to be challenging
through the first half of 2023 which resulted in a decline in gross profit of
-2.2% vs. H1 2022 in reported rates and -4.4% in 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 2023: Geographies: the percentage outside the UK
increased to 87.5% (H1 2022: 85.9%), due to the strong H1 gross profit growth
in EMEA, whilst all other regions were in decline.
Disciplines: the percentage outside of Accounting and Financial Services was
broadly in line with H1 2022 at 68.2% (H1 2022: 68.8%).
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 2023: 74% of our gross profit was generated from
permanent placements, below the 78% in 2022. Permanent recruitment declined
9.1% in constant currencies against 2022, whilst temporary recruitment, grew
12.5%. This reflects the current economic climate, with clients looking for
more flexibility in their hiring decisions.
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 2023: Gross profit per fee earner of £79.7k was down
5.8% vs. 2022 in constant currencies. Although we continued to see the
benefits of video interviewing reducing time to hire, combined with the data
and technology investments made by the Group in recent years, trading
conditions were significantly more challenging than in H1 2022.
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 2023: Operating profit as a percentage of gross profit
decreased to 12.1% compared to the prior year (H1 2022: 21.4%), driven by the
reduced productivity and higher cost base.
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 2023: Earnings per share (EPS) in H1 2023 was 13.6p, a
decrease of 46.9% on the 2022 EPS of 25.6p. The decline is due to the lower
profit for the period, driven by the more adverse trading conditions.
Relevant strategic objective: Build for the long-term, organic 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 2023: Net fee earner headcount decreased by 558 (8.0%)
in H1 2023, resulting in 6,385 fee earners at the end of June. We have reduced
our fee earner headcount in all regions, in response to the more challenging
trading conditions.
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 2023: Net cash at 30 June 2023 was £97.9m (H1 2022:
£136.2m). The 2023 balance is after the payment of the 2022 final dividend of
£33.9m and the purchase of shares into the Employee Benefit Trust of £17.5m
(H1 2022: £14.8m).
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 2022 on pages 56 to 64.
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 December
2027, with a total drawable amount of £80m. Neither of these facilities were
in use as at 30 June 2023. 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 continue to evolve
alongside our business. In April 2023, we published our third sustainability
report, highlighting the progress we've made on our four Sustainability goals
over the course of 2022. This includes:
· Changing 135,000 lives in 2022
· Increasing our proportion of women in leadership roles to 43%
· Decreasing our scope 1 & 2 emissions by 30% vs 2021
· Increasing net fees from our sustainability business by 120% vs 2021
H1 2023 has delivered continued and strong progress against all key targets.
We have also committed to set a Science-based Target and are working on our
submission to the Science-based Target Initiative.
We are now well on our way to reaching our sustainability goals, as we strive
to support the transition to a more equitable and greener society. 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 2024 (review period).
The Group had £97.9m of cash as at 30 June 2023, with no debt except for IFRS
16 lease liabilities of £103.6m. 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. None of these facilities
were in use as at 30 June 2023.
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. Having considered the Group's forecasts, the level of cash
resources available to the business and the Group's borrowing facilities, the
Group's geographical and discipline diversification, limited concentration
risk, as well as the ability to manage the cost base, the Board has concluded
that the Group and therefore the Company has adequate resource to continue in
operation existence for the period through to August 2024.
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,
Nicholas Kirk Kelvin Stagg
Chief Executive Officer Chief Financial Officer
4 August 2023 4 August 2023
PageGroup will host a conference call, with on-line slide presentation, for
analysts and investors at 8.30am on 7 August 2023, the details of which are
below.
Link:
https://www.investis-live.com/pagegroup/64b938709b8a600d00c5206e/paau
(https://protect-eu.mimecast.com/s/pm5iCzKLmhM10Zxvi4L8bj?domain=investis-live.com)
Please use the following dial-in number to join the conference:
United Kingdom (Local) 020 4587 0498
All other locations +44 20 4587 0498
Please quote participant access code 51 80 95 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 7 August 2023 at:
https://www.page.com/presentations/year/2023
(https://www.page.com/presentations/year/2023)
Enquiries:
PageGroup +44 (0)20 3077 8425 (tel:+44%20(0)20%203077%208425)
Nicholas Kirk, Chief Executive Officer
Kelvin Stagg, Chief Financial Officer
FTI Consulting +44 (0)20 3727 1340 (tel:+44%20(0)20%203727%201340)
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 2023 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 2023 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" (ISRE) 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
4th August 2023
Condensed Consolidated Income Statement
For the six months ended 30 June 2023
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Revenue 3 1,033,886 977,257 1,990,287
Cost of sales (507,095) (438,354) (913,993)
Gross profit 3 526,791 538,903 1,076,294
Administrative expenses (462,934) (423,586) (880,215)
Operating profit 3 63,857 115,317 196,079
Financial income 4 829 392 1,104
Financial expenses 4 (1,378) (1,212) (2,817)
Profit before tax 3 63,308 114,497 194,366
Income tax expense 5 (20,176) (33,000) (55,354)
Profit for the period 43,132 81,497 139,012
Attributable to:
Owners of the parent 43,132 81,497 139,012
Earnings per share
Basic earnings per share (pence) 8 13.6 25.6 43.7
Diluted earnings per share (pence) 8 13.6 25.5 43.5
The above results all relate to continuing operations
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2023
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit for the period 43,132 81,497 139,012
Other comprehensive (loss)/income for the period
Items that may subsequently be reclassified to profit and loss:
Currency translation differences (13,997) 10,968 15,441
Total comprehensive income for the period 29,135 92,465 154,453
Attributable to:
Owners of the parent 29,135 92,465 154,453
Condensed Consolidated Balance Sheet
As at 30 June 2023
30 June 31 December
30 June
2023 2022 2022
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Non-current assets
Property, plant and equipment 9 37,665 33,251 36,123
Right-of-use assets 93,395 93,188 100,996
Intangible assets - Goodwill and other intangible 1,859 2,036 1,955
- Computer software 33,880 42,740 38,045
Deferred tax assets 20,421 19,941 18,641
Other receivables 10 12,890 12,989 13,224
200,110 204,145 208,984
Current assets
Trade and other receivables 10 411,725 441,274 437,247
Current tax receivable 21,095 22,048 17,233
Cash and cash equivalents 13 97,939 136,227 131,480
530,759 599,549 585,960
Total assets 3 730,869 803,694 794,944
Current liabilities
Trade and other payables 11 (258,308) (256,958) (289,108)
Provisions 12 (3,737) (2,236) (2,772)
Lease liabilities (32,984) (29,746) (31,268)
Current tax payable (15,457) (32,785) (18,050)
(310,486) (321,725) (341,198)
Net current assets 220,273 277,824 244,762
Non-current liabilities
Other payables 11 (8,455) (13,883) (14,951)
Lease liabilities (70,643) (71,878) (78,564)
Deferred tax liabilities (2,619) (1,475) (1,345)
Provisions 12 (4,812) (7,443) (6,683)
(86,529) (94,679) (101,543)
Total liabilities 3 (397,015) (416,404) (442,741)
Net assets 333,854 387,290 352,203
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 (73,123) (56,875) (56,626)
Currency translation reserve 18,341 27,865 32,338
Retained earnings 284,854 312,518 272,709
Total equity 333,854 387,290 352,203
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2023
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 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 the 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
Currency translation differences - - - - 4,473 - 4,473
Net income recognised directly in equity - - - - 4,473 - 4,473
Profit for the six months ended 31 December 2022 - - - - - 57,515 57,515
Total comprehensive income for the period - - - - 4,473 57,515 61,988
Purchase of shares held in the employee benefit trust - - - (1) - - (1)
Exercise of share plans - - - - - 171 171
Reserve transfer when shares held in the employee benefit trust vest - - - 250 - (250) -
Credit in respect of share schemes - - - - - 3,067 3,067
Credit in respect of tax on share schemes - - - - - 195 195
Dividends - - - - - (100,507) (100,507)
- - - 249 - (97,324) (97,075)
Balance at 31 December 2022 3,286 99,564 932 (56,626) 32,338 272,709 352,203
Balance at 1 January 2023 3,286 99,564 932 (56,626) 32,338 272,709 352,203
Currency translation differences - - - - (13,997) - (13,997)
Net expense recognised directly in equity - - - - (13,997) - (13,997)
Profit for the six months ended 30 June 2023 - - - - - 43,132 43,132
Total comprehensive (expense)/income for the period - - - - (13,997) 43,132 29,135
Purchase of shares held in employee benefit trust - - - (17,529) - - (17,529)
Exercise of share plans - - - - - 759 759
Reserve transfer when shares held in the employee benefit trust vest - - - 1,032 - (1,032) -
Credit in respect of share schemes - - - - - 2,462 2,462
Credit in respect of tax on share schemes - - - - - 713 713
Dividends - - - - - (33,889) (33,889)
- - - (16,497) - (30,987) (47,484)
Balance at 30 June 2023 3,286 99,564 932 (73,123) 18,341 284,854 333,854
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2023
30 June 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
£'000 £'000 £'000
Note
Profit before tax 63,308 114,497 194,366
Depreciation, amortisation charges and expense of computer software 31,913 33,519 60,592
Loss on sale of property, plant and equipment 144 43 4,398
Share scheme charges 2,468 2,923 5,989
Net finance costs 549 820 1,713
Operating cash flow before changes in working capital 98,382 151,802 267,058
Decrease/(increase) in receivables 13,375 (71,612) (61,509)
(Decrease)/increase in payables (28,045) 12,309 40,821
Cash generated from operations 83,712 92,499 246,370
Income tax paid (27,337) (30,023) (61,598)
Net cash from operating activities 56,375 62,476 184,772
Cash flows from investing activities
Purchases of property, plant and equipment (9,530) (12,723) (21,982)
Purchases and capitalisation of intangible assets (1,848) (6,558) (9,693)
Proceeds from the sale of property, plant and equipment, and computer software 85 336 2,080
Interest received 829 392 1,104
Net cash used in investing activities (10,464) (18,553) (28,491)
Cash flows from financing activities
Dividends paid (33,889) (32,740) (133,247)
Interest paid (266) (527) (1,213)
Lease liability repayment (18,779) (17,047) (35,896)
Issue of own shares for the exercise of options 759 276 447
Purchase of shares into the employee benefit trust (17,529) (14,837) (14,838)
Net cash used in financing activities (69,704) (64,875) (184,747)
Net decrease in cash and cash equivalents (23,793) (20,952) (28,466)
Cash and cash equivalents at the beginning of the period 131,480 153,983 153,983
Exchange (loss)/gain on cash and cash equivalents (9,748) 3,196 5,963
Cash and cash equivalents at the end of the period 13 97,939 136,227 131,480
Notes to the condensed set of interim results
For the six months ended 30 June 2023
1. General information
The information for the year ended 31 December 2022 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 2023 were authorised for issue in accordance with a resolution of the
directors on 4 August 2023.
2. Accounting policies
Basis of preparation
The unaudited interim condensed consolidated financial statements for the six
months ended 30 June 2023 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 2022, were
approved by the directors on 9 March 2023. The interim condensed
consolidated financial statements should be read in conjunction with the
Annual Report and Accounts for the year ended 31 December 2022, which have
been prepared in accordance with UK-adopted international accounting standards
("IFRSs").
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 2024 (review period).
The Group had £97.9m of cash as at 30 June 2023, with no debt except for IFRS
16 lease liabilities of £103.6m. 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. None of these facilities
were in use as at 30 June 2023.
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. Having considered the Group's forecasts, the level of cash
resources available to the business and the Group's borrowing facilities, the
Group's geographical and discipline diversification, limited concentration
risk, as well as the ability to manage the cost base, the Board has concluded
that the Group and therefore the Company has adequate resource to continue in
operation existence for the period through to August 2024.
New accounting standards, interpretations and amendments adopted by the Group
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual consolidated financial statements for the
year ended 31 December 2022. The Group has not early adopted any standard,
interpretation or amendment that has been issued but is not yet effective.
The IASB published on 23 May 2023 International Tax Reform - Pillar Two Model
Rules (Amendments to IAS 12) which was adopted by the UKEB on 19th July
2023. Page Group has applied the mandatory temporary exception to the
accounting for deferred taxes arising from the jurisdictional implementation
of the Pillar Two model rules to our FY23 Interim reporting.
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
2023 2022 2022 2023 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 580,539 522,981 1,069,346 288,400 266,683 538,488
Asia Pacific 149,842 159,329 318,359 83,416 102,046 195,276
Americas 150,971 137,302 282,942 89,047 94,188 193,397
United Kingdom 152,534 157,645 319,640 65,928 75,986 149,133
1,033,886 977,257 1,990,287 526,791 538,903 1,076,294
Operating Profit
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
£'000 £'000 £'000
EMEA 47,818 65,283 122,079
Asia Pacific 4,458 20,952 35,244
Americas 5,927 13,822 17,885
United Kingdom 5,654 15,260 20,871
Operating profit 63,857 115,317 196,079
Financial expense (549) (820) (1,713)
Profit before tax 63,308 114,497 194,366
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. 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
2023 2022 2022 2023 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 320,385 315,833 338,251 249,084 210,853 248,585
Asia Pacific 108,769 142,008 128,299 62,871 64,930 69,995
Americas 109,488 115,299 116,647 51,310 47,642 60,635
United Kingdom 171,132 208,506 194,514 18,293 60,194 45,476
Segment assets/liabilities 709,774 781,646 777,711 381,558 383,619 424,691
Income tax 21,095 22,048 17,233 15,457 32,785 18,050
730,869 803,694 794,944 397,015 416,404 442,741
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
2023 2022 2022 2023 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 15,092 12,730 14,072 2,122 2,197 2,296
Asia Pacific 5,041 6,383 6,194 58 172 110
Americas 6,899 7,542 7,378 4 6 5
United Kingdom 10,633 6,596 8,479 33,555 42,401 37,589
37,665 33,251 36,123 35,739 44,776 40,000
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
2023 2022 2022 2023 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 60,292 52,621 61,760 66,967 56,130 65,136
Asia Pacific 15,110 16,493 17,415 15,715 17,509 20,042
Americas 10,026 10,072 11,950 12,676 12,943 14,434
United Kingdom 7,967 14,002 9,871 8,269 15,042 10,220
93,395 93,188 100,996 103,627 101,624 109,832
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
2023 2022 2022 2023 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000
Permanent 395,569 426,975 832,014 392,202 422,133 826,321
Temporary 638,317 550,282 1,158,273 134,589 116,770 249,973
1,033,886 977,257 1,990,287 526,791 538,903 1,076,294
(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
2023 2022 2022 2023 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000
EMEA 199,879 192,132 380,002 380,660 330,849 689,344
Asia Pacific 70,690 89,854 170,029 79,152 69,475 148,330
Americas 78,073 84,974 170,970 72,898 52,328 111,972
United Kingdom 46,927 60,015 111,013 105,607 97,630 208,627
395,569 426,975 832,014 638,317 550,282 1,158,273
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
2023 2022 2022 2023 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000
Accounting and Financial Services 367,273 354,229 720,783 167,433 168,391 343,659
Legal, Technology, HR, Secretarial and Other 352,448 321,332 667,543 162,281 167,871 334,772
Engineering, Property & Construction, Procurement & Supply Chain 217,835 199,154 400,959 127,689 126,735 251,686
Marketing, Sales and Retail 96,330 102,542 201,002 69,388 75,906 146,177
1,033,886 977,257 1,990,287 526,791 538,903 1,076,294
(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
2023 2022 2022 2023 2022 2022
£'000 £'000 £'000 £'000 £'000 £'000
Large, Proven markets 524,692 505,917 1,015,599 241,961 245,429 483,627
Large, High Potential markets 359,314 334,214 688,925 194,274 208,007 417,296
Small and Medium, High Margin markets 149,880 137,126 285,763 90,556 85,467 175,371
1,033,886 977,257 1,990,287 526,791 538,903 1,076,294
4. Financial income / (expenses)
Six months ended Year ended
30 June 30 June 31 December
2023 2022 2022
£'000 £'000 £'000
Financial income
Bank interest receivable 829 392 1,104
Financial expenses
Bank interest payable (266) (527) (1,213)
Interest on lease liabilities (1,112) (685) (1,604)
(1,378) (1,212) (2,817)
5. Income tax expense
Taxation for the six month period is charged at 31.9% (six months ended 30
June 2022: 28.8%; year ended 31 December 2022: 28.5%), 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
2023 2022 2022
£'000 £'000 £'000
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended 31 December 2022 of 10.76p per ordinary 33,889 32,740 32,740
share (2021: 10.30p)
Interim dividend for the period ended 30 June 2022 of 4.91p per ordinary share - - 15,607
(2021: 4.70p)
Special dividend for the year ended 31 December 2022 of 26.71p per ordinary - - 84,900
share (2021: 0p)
33,889 32,740 133,247
Amounts proposed as distributions to equity holders in the period:
Proposed interim dividend for the period ended 30 June 2023 of 5.13p per 16,161 15,607
ordinary share (2022: 4.91p)
Proposed special dividend for the year ended 31 December 2023 of 15.87p per 50,000 84,900
ordinary share (2022: 26.71p)
Proposed final dividend for the year ended 31 December 2022 of 10.76p per - - 34,207
ordinary share
The proposed interim and special dividends have not been approved by the Board
at 30 June 2023 and therefore have not been included as a liability. The
comparative interim and special dividends at 30 June 2022 were also not
recognised as a liability in the prior period.
The proposed interim dividend of 5.13p (2022: 4.91p) per ordinary share and
special dividend of 15.87p (2022: 26.71p) per ordinary share will be paid on
13 October 2023 to shareholders on the register at the close of business on 1
September 2023.
7. Share-based payments
In accordance with IFRS 2 "Share-based Payment", a charge of £2.6m has been
recognised for share options and other share-based payment arrangements
(including social charges) (30 June 2022: £2.1m, 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:
Six months ended Year ended
30 June 30 June 31 December
Earnings 2023 2022 2022
Earnings for basic and diluted earnings per share (£'000) 43,132 81,497 139,012
Number of shares
Weighted average number of shares used for basic earnings per share ('000) 316,436 318,473 318,166
Dilution effect of share plans ('000) 1,494 843 1,204
Diluted weighted average number of shares used for diluted earnings per share 317,930 319,316 319,370
('000)
Basic earnings per share (pence) 13.6 25.6 43.7
Diluted earnings per share (pence) 13.6 25.5 43.5
The above results all relate to continuing operations.
9. Property, plant and equipment
Acquisitions
During the period ended 30 June 2023 the Group acquired property, plant and
equipment with a cost of £9.5m (30 June 2022: £12.7m).
10. Trade and other receivables
30 June 30 June 31 December
2023 2022 2022
£'000 £'000 £'000
Current
Trade receivables 272,047 306,557 320,794
Less allowance for expected credit losses (12,429) (12,361) (12,960)
Net trade receivables 259,618 294,196 307,834
Other receivables 7,149 4,658 21,535
Accrued income (net of revenue reversals) 112,278 112,994 88,951
Prepayments 32,680 29,426 18,927
411,725 441,274 437,247
Non-current
Other receivables 12,890 12,989 13,224
11. Trade and other payables
30 June 30 June 31 December
2023 2022 2022
£'000 £'000 £'000
Current
Trade payables 3,192 5,023 11,101
Other tax and social security 50,593 45,368 61,079
Other payables 17,676 35,847 36,629
Accruals 186,847 170,720 180,299
258,308 256,958 289,108
Non-current
Accruals 8,455 13,883 14,529
Other tax and social security - - 422
8,455 13,883 14,951
12. Provisions
30 June 30 June 31 December
2023 2022 2022
£'000 £'000 £'000
Dilapidations 6,528 7,212 7,128
NI on share schemes 694 954 844
Other 1,327 1,513 1,483
8,549 9,679 9,455
Current 3,737 2,236 2,772
Non-Current 4,812 7,443 6,683
8,549 9,679 9,455
13. Cash and cash equivalents
30 June 30 June 31 December
2023 2022 2022
£'000 £'000 £'000
Cash at bank and in hand 97,939 136,227 131,480
Short-term deposits - - -
Cash and cash equivalents 97,939 136,227 131,480
Cash and cash equivalents in the statement of cash flows 97,939 136,227 131,480
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.
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
N Kirk K Stagg
Chief Executive Officer Chief Financial Officer
4 August 2023
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/2023
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