Half-year Report

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 (6 months to 30 June 2022)	2022	2021	Change	Change CC*
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 .

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

Please use the following dial-in number to join the conference:

United Kingdom (Local)	020 3936 2999
All other locations	[phone]

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

Enquiries:

PageGroup	[phone]
Steve Ingham, Chief Executive Officer Kelvin Stagg, Chief Financial Officer
FTI Consulting	[phone]
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 30 June		31 December
			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 share (2020: 0p)	32,740		-		-
Interim dividend for the period ended 30 June 2021 of 0p per ordinary share (2020: 4.70p)	-		-		14,998
Special dividend for the year ended 31 December 2021 of 0p per ordinary share (2020: 26.71p)	-		-		85,232
	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 ordinary share (2021: 4.70p)	15,607		14,957		-
Proposed special dividend for the year ended 31 December 2022 of 26.71p per ordinary share (2021: 26.71p)	84,900		85,000		-
Proposed final dividend for the year ended 31 December 2021 of 10.30p per ordinary share	-		-		32,912

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 ('000)	319,316		318,242	319,469
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 30 June		31 December
	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

 

END

 

 

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