steve ingham chief executive officer q4 2020 and fy20 trading … · 2021. 1. 13. · q4 20...

Steve Ingham

Kelvin Stagg

Chief Executive Officer

Chief Financial Officer

LSE: PAGE.L

Website: https://www.page.com/investors

Q4 2020 and FY20 Trading Update

http://www.page.com/investors

Headline Numbers

Kelvin Stagg, Chief Financial Officer

Q4 20

Headline Numbers Financial Review Regional Review Summary

3

Group gross profit decline of 20.2%, December -18.2%

Q4 Overview

£165.5m£205.1m Q4 2019

£609.7m£855.5m FY 2019

Gross Profit

Q4

Gross Profit

FY

-20.2%-28.2% FY 2020

-19.3%-28.7% FY 2020

Constant

Currency Q4

Reported Rates

Q4

Michael

Page Q4

Page

Personnel Q4

-18.0%-30.4% Q3 2020

-25.1%-35.2% Q3 2020

Net Cash

Total

Headcount

c. £165m£152m Q3 2020

6,6946,783 Q3 2020

Financial Review

Q4 20


• Gross Profit decline in

permanent -20.0% to £121.3m

• Temporary -20.7% to £44.2m

• Perm:Temp ratio 73:27 (Q4

2019: 73:27)







Perm and Temp ratioSimilar impact in Perm and Temp

73%

27%

Perm Temp

82%

18%

Perm Temp

52%48%

Perm Temp

-20.2% -18.0% -25.1%

5

Q4 20


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Q3 2020 Q4 2020

He

ad

co

un

t

Support Staff Fee Earners

Total headcount

-1.3%• Overall strategy is to protect the platform and position the Group for

growth as conditions improve

• Gross profit down 28% for the year, fee earner headcount down 15%

• Hired approaching 400 experienced fee earners

• Overall decrease in fee earners of 78 (-1.5%) in the Quarter

• Operational support headcount reduced by 11 (-0.7%) in the Quarter

• Ratio of fee earners to operational support staff maintained at 77:23

• Continued roll out of new operating system, Customer Connect

• Roll out of our data intelligence tool, Page Insights

6

Protecting and investing in our platformSlower reduction of headcount in Q4

-0.7%

-1.5% 5,145

1,560* 1,549

5,223*

*Including furloughed staff of 65 (43 Fee Earners and 22 Support Staff)

Q4 20


0

1500

3000

4500

6000

0

50

100

150

200

250

Q1

Q2

Q3

Q4

Q1

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Q4

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Q1

Q2

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Q1

Q2

Q3

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Q3

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Q2

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Q4

Fee E

arn

ers

Gro

ss P

rofit

(£m

) as r

eport

ed

Fee Earners

7

Gross profit sharp downturnDecline in fee earner headcount much less than 2009

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Regional Review

Steve Ingham, Chief Executive Officer

Q4 20


Improving activity levels through Q4

Group growth rate improved to -20.2%

• Large, High Potential markets* (34% of Group) -17%

• Technology, Contracting, Digital and Healthcare & Life Sciences the most resilient

businesses

• Growth in a number of markets including Mainland China and Japan in December

• Group exited quarter in December -18.2%

9

Gross Profit

by GeographyQ4 2020 £m 2019 £m Reported % Constant %

EMEA 87.7 103.5 -15.2% -18.6%

Asia Pacific 34.0 37.4 -9.0% -10.2%

Americas 22.8 32.3 -29.6% -23.2%

UK 21.0 31.9 -34.2% -34.2%

Group Total 165.5 205.1 -19.3% -20.2%

*Germany, Greater China, Latin America, South East Asia and the US

Q4 20


• Michael Page -16%, Page Personnel -22%

• France, 17% of the Group, -20%

• Germany, 10% of the Group, -13%

• Southern Europe -19%; Italy -21%, Spain -20%

• Benelux -24%

10

53% of Group

Gross Profit

by Geography

EMEA -18.6%Improvement in trading conditions continued, lockdowns impacted exit rates

No. 2020 Q4 2019 Q4 % 2020 Q3 %

Fee Earners 2,321 2,610 -11.1% 2,360 -1.7%

£m Period 2020 2019Reported

%

Constant

%

Gross Profit

Q4 87.7 103.5 -15.2% -18.6%

FY 318.8 418.3 -23.8% -24.5%

Q4 20


• Asia, 17% of the Group, -4%

• Greater China, 8% of the Group, -10%; Mainland China flat; Hong

Kong -28%

• Japan +18% and India -3%

• South East Asia -13%; Singapore -14%

• Australia -26%

20% of Group

Gross Profit

by Geography

Asia Pacific -10.2%Mainland China and Japan standout results

No. 2020 Q4 2019 Q4 % 2020 Q3 %

Fee Earners 1,089 1,352 -19.5% 1,120 -2.8%

11


%

Constant

%

Gross Profit

Q4 34.0 37.4 -9.0% -10.2%

FY 121.1 163.3 -25.8% -25.1%

Q4 20


USA55%

Mexico13%

Brazil12%

Rest of Latam16%

• US -31%

• Latin America -13%

• Brazil -6%

• Mexico -30%

14% of Group

Gross Profit

by Geography

Americas -23.2%Significant disruption from COVID-19

No. 2020 Q4 2019 Q4 % 2020 Q3 %

Fee Earners 922 1,147 -19.6% 937 -1.6%

Canada

4%

12


%

Constant

%

Gross Profit

Q4 22.8 32.3 -29.6% -23.2%

FY 88.8 138.8 -36.0% -31.4%

Q4 20


London32%

North25%

South24%

Midlands19%

• Exited December at -30%

• Michael Page -31%, Page Personnel -43%

• Permanent -33%, Temporary -37%

13% of Group

Gross Profit

by Geography

UK -34.2%Trading conditions remain challenging

No. 2020 Q4 2019 Q4 % 2020 Q3 %

Fee Earners 813 918 -11.4% 806* +0.9%

*Including 43 furloughed employees 13


%

Gross Profit

Q4 21.0 31.9 -34.2%

FY 81.0 135.1 -40.1%

Summary

Q4 20


15

SummaryActivity levels improved further in Q4

Maintain focus on long-term Vision

Continue to protect and invest to take advantage of the recovery

High degree of uncertainty for 2021

Technology, Digital, Healthcare & Life Sciences most robust businesses

Priority remains to protect our employees, candidates and clients

December exit rate -18.2%, impacted by local lockdowns in some markets

Improving activity levels continued through Q4

Appendix

Q4 20


17

Our business model

Q4 20


18

Delivering on our global diversification strategy

A growing international business

FY 2007 FY 2013 FY 2020

Gross Profit

InternationalUK

Q4 20


19

67%

85% 83%

68%

33%

15% 17%

32%

EMEA Asia Pacific Americas UK

Temp Perm

82%

52%

18%

48%

Michael Page Page Personnel

Geography Brands

Significant variations in recruitment mix

Q4 20


EMEA

AMERICAS

ASIA

PACIFIC

20

Portugal

(2000)

Switzerland

(2001)

Belgium

(2002)

Sweden

(2002)

Poland S Africa

Ireland

UAE

Austria

Turkey

Luxembourg

Morocco

Thailand

Indonesia

Taiwan

India

MalaysiaNew

Zealand

Japan

(2001)

China

(2003)

Australia

(1985)

USA (1998) Brazil (2000) Canada Mexico Chile Colombia Peru

INT

ER

NA

TIO

NA

L G

RO

WT

H

France

(1986)

Netherlands

(1987)

Germany

(1993)

Spain

(1997)

Italy

(1997)

Hong Kong

(1995)

Singapore

(1996)

Argentina

UKASIA

PACIFICEMEA AMERICAS

Long term fee earner and international growth

Vietnam

1985-1990 1990-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

922813

2,321

1,089

Philippines

Q4 20


21

Fee earner investment and support staff

Q4 20


22

Year-on-Year Gross Profit Rates

2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

EMEA +18.2% +18.6% +20.9% +13.9% +11.4% +9.0% +5.6% +2.3% -11.1% -42.9% -24.5% -18.6%

Asia Pacific +13.8% +18.4% +27.7% +22.0% +14.9% +4.7% -8.1% -7.9% -16.6% -41.7% -28.2% -10.2%

– Asia +17.8% +21.2% +32.2% +21.2% +15.6% +5.8% -10.6% -7.6% -17.1% -38.1% -23.4% -4.3%

– Australasia +4.3% +10.6% +15.7% +25.0% +13.0% +0.9% +1.1% -9.6% -16.6% -53.7% -43.6% -28.4%

Americas +20.4% +29.2% +30.1% +29.2% +21.4% +17.4% +13.0% +5.0% -3.0% -55.0% -41.9% -23.2%

– North America +16.4% +27.0% +27.2% +30.3% +20.9% +18.9% +10.3% +4.6% +2.5% -49.4% -38.7% -30.0%

– Latin America +25.7% +32.2% +33.9% +27.7% +21.6% +15.3% +16.9% +5.5% -10.8% -63.5% -46.5% -12.7%

UK -7.1% -1.9% +0.8% +2.1% +1.7% -2.4% -4.1% -4.8% -16.0% -61.5% -47.9% -34.2%

Group Total +12.3% +16.0% +19.7% +15.4% +11.7% +7.4% +2.1% -0.4% -11.7% -47.6% -31.9% -20.2%

Q4 20


23

Contacts

Jeremy Tatham – Group Financial Controller

Tel: +44 (0) 1932 264 143

Email: [email protected]

Web: https://www.page.com/investors

Date Event

3 March 2021 FY 2020 Trading Update

Contacts and Calendar

Q4 20


24

This presentation contains certain statements that are neither reported financial results nor other historical information.

The information contained in this presentation is not audited, is for personal use and informational purposes only and is

not intended for distribution to, or use by, any person or entity in any jurisdiction in any country where such distribution or

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accuracy, fairness or completeness of the information or opinions made in this presentation.

Certain statements included or incorporated by reference within this presentation may constitute “forward-looking

statements” that are based on current expectations or beliefs, as well as assumptions about future events. There are risk

factors that can cause actual results to differ materially from those expressed in or implied by such statements.

Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on

any forward-looking statement.

PageGroup plc disclaims any intention or obligation to revise or update any forward-looking statements that may be made

in this presentation, regardless of whether those statements are affected as a result of new information, future events or

otherwise. Nothing in this presentation should be construed as a profit forecast.

This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to

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performance. Liability arising from anything in this presentation shall be governed by English Law. Nothing in this

presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

Disclaimer

steve ingham chief executive officer q4 2020 and fy20 trading … · 2021. 1. 13. · q4 20...

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