Connecting to LinkedIn...


PageGroup - Half Year Results for the Period Ended 30 June 2013

PageGroup - Half Year Results for the Period Ended 30 June 2013

Michael Page International plc the specialist professional recruitment company, announces its unaudited half year results for the period ended 30 June 2013.

Financial summary (6 months to 30 June 2013)             2013                      2012                      Change  

Revenue                                                                                               &pound503.2m                               &pound502.6m                               0.1%    

Gross profit                                                                          &pound261.9m                               &pound273.9m                               -4.4%     

Operating profit before exceptional items                   &dagger&pound32.1m                               &pound36.0m                 -10.8%   

Profit before tax before exceptional items                   &pound32.0m                 &pound36.1m                 -11.3%   

Basic earnings per share before exceptional items      7.0p                       7.9p                       -11.4%   

Diluted earnings per share before exceptional items  7.0p                       7.8p                       -10.3                                      

Operating profit                                                                  &pound32.1m                 &pound28.2m                 14.1%  

Profit before tax                                                                 &pound32.0m                 &pound28.2m                 13.4%  

Basic earnings per share                                                   7.0p                       6.1p                       14.8%  

Diluted earnings per share                                                               7.0p                       6.1p                       14.8%  


Interim dividend per share                                                               3.25p                     3.25p      -              


•      Group gross profit  -4.4% year-on-year, the business is profitable in all established markets

•      Signs of improvement in many markets as the period progressed

•      77% of gross profit generated from outside the UK

•      59% of gross profit generated from non Finance and Accounting disciplines

•      Gross profit from permanent placements reduced by 6% (-7%*)

•      Gross profit from temporary placements grew by 2% (1%*)

•     Continued focus on operational efficiency, with headcount down by 144 (-2.8%) in first half of 2013, primarily in operational support

•      Strong balance sheet with net cash at 30 June 2013 of &pound47.6m

•      Interim dividend held at 3.25p

Commenting on the results, Steve Ingham, Chief Executive Officer of PageGroup, said: "PageGroup delivered a robust performance throughout the first half, against a backdrop of challenging market conditions across most of our regions, reporting gross profit of &pound261.9m, down 4.4% year-on-year. Market conditions also showed signs of improvement during the second quarter of 2013, with a 6.6% increase in gross profit compared to the first quarter.

"We have made excellent progress on our key strategic objectives following the management changes last year:"

•      continued investment in each of our 5 high potential markets: China, South East Asia, Germany, Latin America and the USA

•      increased focus on consistency and efficiency in our operational support teams

•      the turnaround of our USA business, where we are up 27%* in gross profit this year and

•      further discipline diversification.

"During the six months to June we saw good performances in a number of regions, most notably in North America. Our offices in Japan, Mexico, Spain and the Middle East also performed particularly well, as did some smaller and newer businesses in Europe, Latin America and Asia. However, in Australia, our business experienced a difficult first half.

"As we indicated earlier in the year, we continue to manage our cost base actively, both to take account of market conditions as well as to improve the Group's operating performance. As a result, headcount has reduced by 144 since the start of the year, primarily in operational support staff.

"Our focus remains fixed on our long-term growth and profit objectives. We will continue to invest in our key, high-potential markets, to manage our fee earner headcount actively, reflecting market conditions and to seek out efficiencies to drive down the costs of operational support. Combined, these initiatives will deliver long-term profitable growth for our shareholders.

"Activity levels remained strong throughout the second quarter, but with difficult conditions likely to continue in several markets and as this is the seasonally quieter summer period in both Continental Europe and the UK, we expect Q3 will be another challenging quarter. The Group is financially strong, with net cash of &pound47.6m and remains well-placed to take advantage of any recovery in the markets in which we operate. At this time, we expect our full year operating profit from trading activities to be in line with current market estimates**."

** Reuters &pound70.9m


Articles similar to

Articles similar to