Confidential

Funding your Business Growth

12 June 2013Nick Littleford

1 | Funding your business growth | 12 June 2013

Confidential

Agenda• Overview of the UK Recruitment Sector

• Issues & Opportunities

• Sector Trends

• Barclays involvement within the Recruitment Sector

• Role of Receivables Funding in the Sector

• Key receivables products available to a growing business

2 | Funding your business growth | 12 June 2013

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The UK Recruitment Sector

Market dominated by temporary staff

Temporary employment has grown during the past decade as companies seek to satisfy customer demand without making long-term commitments to worker salary and benefits

The recruitment sector grew marginally during 2011-12 by 0.4% and is likely to witness moderate growth in the coming years.

Source: REC website; REC/KPMG report on jobs; Web search.

Staff volumesMarket value (2011-12)

The recruitment industry grew by 4.3% in 2011-12 to £25.7bn and is estimated to surpass its pre-recession peak of £27.0bn by the end of 2013-14

.

Size of the UK recruitment sector (£bn)

0

10

20

30

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-120

800

1,600

2,400Market value (£bn) Staffing volume ('000), RHS Permanent

9%

Temporary91%

Permanent33%

Temporary67%

3 | Funding your business growth | 12 June 2013

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New government rules implemented in 2013 are likely to impact hiring and growth.

Source: REC jobs outlook 2012; REC/KPMG report on jobs Web search.

• Continued growth in recruitment activity

• High growth in IT & Computing Sector

• Increasing Unemployment

• Slow growth in job vacancies

• Regulatory impact

Issues and opportunities

4 | Funding your business growth | 12 June 2013

Confidential

New government rules implemented in 2013 are likely to impact hiring and growth.

Source: REC jobs outlook 2012; REC/KPMG report on jobs Web search.

35

50

65

80

Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep'12 Mar'13

Permanent Staff Vacancy Index Temporary Staff Vacancy Index

50 = no change over previous month

 Permanent staff demand index, by sector

Key sectors  Nov’12 Dec’12 Jan’13 Feb’13 Mar’13

Nursing/Medical/ 57.2 58.9 59.3 57.4 56.6

Engineer’g/Construction 60.3 59.8 60.8 57.9 57.8

IT & Computing 57.5 57.8 60.7 60.6 58.4

Accounting/Financial 56.0 54.3 55.6 56.7 54.3

Executive/Professional 54.3 57.1 56.7 56.8 54.9

Secretarial/Clerical 58.2 57.4 56.0 53.9 51.4

Blue Collar 55.1 54.3 52.5 52.6 51.4

Hotel & Catering 49.3 51.5 50.5 53.6 50.9

Issues and opportunities

5 | Funding your business growth | 12 June 2013

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Increased perception of job insecurity coupled with changing employer attitude has led to falling demand for recruitment agencies, thereby impacting their margins.

Key trends in

the recruitment sector Rise in hours

worked

Reduced reliance on recruitment

agencies

Margin squeeze

Changing employer attitude

Increased perception of job insecurity

Source: REC jobs outlook 2012; REC/KPMG report on jobs Web search.

Key sector trends

6 | Funding your business growth | 12 June 2013

Confidential

• First bank to specialise in the Recruitment and Executive Search sector.

• Affiliated with APSCo (Association of Professional Staffing Companies)

• Barclays sponsors a recruitment MBA at Henley Management College

• Relationships with 8 of the top 10 recruitment companies in the UK and 800 relationships nationally

• Funding provided by utilising key asset of the business – the receivables.

• Funding for Lending Scheme

Barclays and the recruitment sector

7 | Funding your business growth | 12 June 2013

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Funding for Lending Q1 2013 results

8 | Funding your business growth | 12 June 2013

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• Timesheet based invoicing perfect fit for a receivables based product

• Release of monies available to the business at an early stage

• Increased cash availability to support your on-going business growth

• Greater visibility over cashflow

Role of Receivables Funding in the sector

9 | Funding your business growth | 12 June 2013

Confidential

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

220,000

240,000

260,000

Domestic Factoring

CAGR of 1.6%

7% of SF volumes

Import/Export ID & Factoring

CAGR of +12%

7% of SF volumes

Invoice Discounting

CAGR of +12%

86% of SF volumes

2000 – 2012 Sales Finance in the UK by product type

(Client Sales Volumes)

Clien

t S

ale

s V

olu

mes £

m

Source: ABFA * China overtook the UK in 2011

• The UK market has undergone significant expansion over the past 12 years with the market growing at a compound annual growth rate of 11%

• The UK market is the second largest SF market globally

• By product Invoice Discounting dominates and accounts for 86% of the total Sales Finance volumes in the UK

• Following the contraction in volumes of 8% in 2009, the market has now seen three years of good growth +11% in 2010, + 12% in 2011 and +6% in 2012

• Turnover from companies using invoice finance at £254bn, is now 22% above the pre-financial crisis level of £208bn seen in 2008

Total Market CAGR of +11% between 2000 -

2012

UK SF Market overview: growth in 2012

10 | Funding your business growth | 12 June 2013

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Client numbers by Sector – Market

29.5%

29.2%

24.2%

6.8%

0.8% 4.6%4.8%

ABFA Client Numbers by Sector

Manufacturing ServicesDistribution TransportRetail ConstructionOther

Source: ABFA and Barclays Returns, December 2012

Total ABFA Clients: 42,965

11 | Funding your business growth | 12 June 2013

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Receivable Products• Confidential Invoice Discounting

• Factoring with Recourse

• Factoring without Recourse

12 | Funding your business growth | 12 June 2013

Confidential

DisclaimerBarclays offers corporate banking products and services to its clients through Barclays Bank PLC.  This presentation has been prepared by Barclays Bank PLC ("Barclays").  This presentation is for discussion purposes only, and shall not constitute any offer to sell or the solicitation of any offer to buy any security, provide any underwriting commitment, or make any offer of financing on the part of Barclays, nor is it intended to give rise to any legal relationship between Barclays and you or any other person, nor is it a recommendation to buy any securities or enter into any transaction or financing. Customers must consult their own regulatory, legal, tax, accounting and other advisers prior to making a determination as to whether to purchase any product, enter into any transaction of financing or invest in any securities to which this presentation relates. Any pricing in this presentation is indicative. Although the statements of fact in this presentation have been obtained from and are based upon sources that Barclays believes to be reliable, Barclays does not guarantee their accuracy or completeness. All opinions and estimates included in this presentation constitute the Barclays’ judgment as of the date of this presentation and are subject to change without notice. Any modelling or back testing data contained in this presentation is not intended to be a statement as to future performance. Past performance is no guarantee of future returns. No representation is made by Barclays as to the reasonableness of the assumptions made within or the accuracy or completeness of any models contained herein.Neither Barclays, nor any officer or employee thereof, accepts any liability whatsoever for any direct or consequential losses arising from any use of this presentation or the information contained herein, or out of the use of or reliance on any information or data set out herein.Barclays and its respective officers, directors, partners and employees, including persons involved in the preparation or issuance of this presentation, may from time to time act as manager, co-manager or underwriter of a public offering or otherwise deal in, hold or act as market-makers or advisers, brokers or commercial and/or investment bankers in relation to any securities or related derivatives which are identical or similar to any securities or derivatives referred to in this presentation.

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13 | Funding your business growth | 12 June 2013