Interim Results

Michael Page International PLC 20 August 2007 20 August 2007 MICHAEL PAGE INTERNATIONAL PLC Half Year Results for the Period Ended 30 June 2007 Michael Page International plc ("Michael Page"), the specialist professional recruitment company, announces its half year results for the period ended 30 June 2007. Financial Highlights (6 months to 30 June ) 2007 2006 Increase Turnover £395.8m £312.0m 26.8% Gross profit £226.5m £166.6m 36.0% Operating profit £69.8m £45.1m 54.9% Profit before tax £69.2m £45.2m 53.1% Basic earnings per share 14.3p 9.1p 57.1% Interim dividend per share 2.4p 1.8p 33.3% Key Points • Record results with all regions growing operating profits organically in excess of 25% • Internationalisation of business continues; 60% of gross profits generated from outside the UK • Over 1,000 staff added in last 12 months • Group gross profit increased by 38.7% in constant currency • Conversion rate of operating profit from gross profit increased to 30.8% (2006: 27.1%) and before share based charges to 32.7% (2006: 30.2%) • £58.8m of cash generated from operations (2006: £26.7m) • 8.4m shares repurchased at a cost of £45.0m • Interim dividend increased by 33.3% Commenting on the results, Steve Ingham, Chief Executive of Michael Page, said: "The quality of our staff, strength of the brand and our unique business model and strategy have all contributed to our achievement of another record set of results in the first half of 2007 outperforming the generalist and specialist recruitment sector. The investments we have made over the past 12 months are producing strong returns and our strategy of geographic diversification is progressing well with 60% of our gross profits being generated from outside the UK. "There is a shortage of good quality candidates in virtually all the markets in which we operate and Michael Page's ability to generate candidates for our clients is a key factor in our success. There remain numerous opportunities for further expansion in both our existing and new businesses in the second half of this year and beyond." Analyst Meeting The company will be presenting to a meeting of analysts at 9.30am today. The presentation and a recording of the meeting will be available on the company's website later on today at: http://investors.michaelpage.co.uk/ir/mpi/ir.jsp?page=presentations Investor Day The Group is holding an investor day in London on 12 September 2007. If you would like to attend please register at: http://c.fw-reply.com/mail/15veMq/s6gv6l/S6gb52/view?contentpart=6gv6p Enquiries: Michael Page International plc 01932 264144 Steve Ingham, Chief Executive Stephen Puckett, Finance Director Financial Dynamics 020 7269 7121 David Yates/Susanne Yule CHAIRMAN'S STATEMENT The Group continues to perform well, with our unique operating model and strategy producing a record set of results with growth rates that exceed the generalist and specialist recruitment sector. The growth, which is all organic, is largely due to a number of key factors. The strength and retention of our management teams, with our expansion being led by experienced Michael Page managers and directors. Our drive for greater diversification of earnings from geographic and discipline expansion. The strength of our brand for attracting clients, candidates and consultants and our global candidate database to service a growing trend for global sourcing of candidates. The addition of over 1,000 people to the organisation in the past 12 months largely to capitalise on the opportunities in our existing businesses. There remain numerous opportunities for further expansion in both our existing and new businesses in the second half of this year and beyond. The Group's turnover for the six months ended 30 June 2007 increased by 26.8% to £395.8m (2006: £312.0m) and gross profit increased by 36.0% to £226.5m (2006: £166.6m). At constant exchange rates, the Group's gross profit increased by 38.7%. While continuing to invest for future top line growth, the Group's business model which has inherently high operational gearing has resulted in operating profit increasing by 54.9% to £69.8m (2006: £45.1m). The Group's conversion rate of operating profit from gross profit, increased to 30.8% (2006: 27.1%). Profit before tax increased by 53.1% to £69.2m (2006: £45.2m). At 30 June 2007 our staff numbers had increased to 4,323 (2006: 3,230) operating from 141 offices in 24 countries. During the period we started operating in Luxembourg and opened offices in Leicester, London's West End, Hamburg, Valencia, Bordeaux, Atlanta and Hartford. We estimate that we will increase our headcount by a further 500 in the second half and that our full year pre bonus cost base will be in the region of £275m. We generated significantly higher growth in gross profit from permanent placements (+41.0%) than from temporary placements (+20.9%). In the first half of 2007 the mix of the Group's turnover and gross profit between permanent and temporary placements was 47:53 (2006: 42:58) and 78:22 (2006: 75:25) respectively. The gross margin on temporary placements increased to 24.1% (2006: 23.2%). UNITED KINGDOM Turnover of UK operations increased by 15.3% to £176.6m (2006: £153.1m), gross profit increased by 21.0% to £92.0m (2006: £76.0m) and operating profit increased by 46.2% to £28.6m (2006: £19.6m). Excluding our Scottish operations, which are managed separately from the rest of the UK, gross profit from Finance and Accounting increased by 14%, Marketing, Sales and Retail increased by 21% and the other disciplines increased by 35%. In Scotland we had a very successful first half with gross profit up by 49%. During the first half, staff numbers increased by 78 to 1,615 at the end of June. EUROPE, MIDDLE EAST AND AFRICA (EMEA) Turnover of Europe, Middle East and Africa (EMEA) operations increased by 43.0% to £149.2m (2006: £104.4m), gross profit increased by 52.5% to £90.4m (2006: £59.3m) and operating profit increased by 76.5% to £28.5m (2006: £16.1m). In constant currency, turnover grew by 46.0%, gross profit by 55.9% and operating profit by 81.8%. Our largest business in this region is France, which currently contributes 33% of the region's gross profit. Gross profit in France increased by 26% (29% in constant currency) in the first half of 2007. Elsewhere in the region our businesses all performed well and together grew gross profits by 70%. We continue to invest in all our businesses in the region as we expand existing teams and offices and roll-out new disciplines. Since the beginning of the year we have added 347 staff making the region's headcount 1,785 at the end of June 2007. ASIA PACIFIC Turnover of Asia Pacific operations increased by 14.4% to £46.9m (2006: £41.0m), gross profit increased by 25.2% to £27.0m (2006: £21.6m) and operating profit increased by 26.4% to £9.8m (2006: £7.8m). In constant currency, turnover grew by 18.5%, gross profit by 31.5% and operating profit by 30.0%. At the end of June we had 501 staff in the region, an increase of 60 since the start of the year. Our largest business in the region, Australia, continued its progress with first half gross profits increasing by 19% (20% in constant currency). Our offices in Hong Kong, Shanghai, Tokyo and Singapore have had a strong first half growing gross profits collectively by 35% (49% in constant currency). THE AMERICAS In the Americas, turnover increased by 70.8% to £23.1m (2006: £13.5m), gross profit increased by 76.1% to £17.1m (2006: £9.7m), and operating profit increased by 83.4% to £2.9m (2006: £1.6m). In constant currency, turnover grew by 83.5%, gross profit by 87.9% and operating profit by 99.6%. In the USA, in addition to opening our first office in Atlanta in the South East Region, we have added a further office into the East Coast Region in Hartford. We have also invested heavily in new staff into the existing offices. In Brazil we achieved strong growth benefiting from further investment in new staff. In the region we now have 422 staff, an increase of 80 since the start of the year. TAXATION AND EARNINGS PER SHARE The charge for taxation is based on the expected effective annual tax rate of 31.5% (2006: 32.5%) on profit before taxation. Basic earnings per share for the six months ended 30 June 2007 was 14.3p (2006: 9.1p) and diluted earnings per share was 14.0p (2006: 8.8p). CASH FLOW The Group started the year with net debt of £3.6m. In the first half, we generated £58.8m from operations after funding a £17.6m increase in working capital reflecting the increased activity. Tax paid was £13.2m and net capital expenditure was £5.4m. During the first half £45.0m was spent repurchasing 8.36m shares at an average price of 534.5p and dividends of £14.0m were paid. 5.0m share options were exercised during the first half generating £7.7m. The Group had net debt of £15.5m at 30 June 2007. DIVIDENDS As previously stated, it is the Board's intention to pay dividends at a level which it believes is sustainable throughout economic cycles and to continue to use share repurchases to return surplus cash to shareholders. The Board has decided to increase the interim dividend by 33% to 2.4p (2006: 1.8p) per share. The interim dividend will be paid on 12 October 2007 to shareholders on the register at 14 September 2007. CURRENT TRADING AND FUTURE PROSPECTS The first half of the year produced record results for the Group with a number of excellent performances around the world. We have invested significantly in new staff during the first half of the year and there remain tremendous opportunities for continuing our growth as we expand existing and open new offices. We believe we are well placed to make further good progress and will issue our third quarter trading update on 5 October 2007. Sir Adrian Montague CBE Chairman 20 August 2007 Unaudited Consolidated Interim Income Statement for the six months ended 30 June 2007 Six months ended Year ended 30 June 30 June 31 December 2007 2006 2006 Note £'000 £'000 £'000 Turnover 3 395,782 312,017 649,060 Cost of sales (169,238) (145,429) (300,243) Gross profit 3 226,544 166,588 348,817 Administrative expenses (156,713) (121,511) (251,450) Operating profit 3 69,831 45,077 97,367 Financial income 466 376 821 Financial expenses (1,108) (255) (1,229) Profit before tax 69,189 45,198 96,959 Income tax expense 4 (21,795) (14,690) (31,512) Profit for the period 47,394 30,508 65,447 Attributable to: Equity holders of the parent 47,394 30,508 65,447 Earnings per share Basic earnings per share (pence) 7 14.3 9.1 19.6 Diluted earnings per share (pence) 7 14.0 8.8 19.0 The above results relate to continuing operations. Unaudited Consolidated Interim Statement of Changes in Equity at 30 June 2007 Called-up Capital Reserve Currency share Share redemption for own translation Retained Total capital premium reserve shares reserve earnings equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 January 2006 3,326 - 424 (9,871) 304 74,713 68,896 Currency translation - - - - (811) - (811) differences Net expense recognised - - - - (811) - (811) directly in equity Profit for the six months - - - - - 30,508 30,508 ended 30 June 2006 Total recognised (expense)/ - - - - (811) 30,508 29,697 income for the period Purchase of own shares for (113) - 113 - - (39,656) (39,656) cancellation Issue of share capital 205 33,001 - - - - 33,206 Transfer to reserve for own - - - 970 - (970) - shares Credit in respect of share - - - - - 7,856 7,856 schemes Dividends - - - - - (12,100) (12,100) 92 33,001 113 970 - (44,870) (10,694) Balance at 30 June 2006 3,418 33,001 537 (8,901) (507) 60,351 87,899 Balance at 1 July 2006 3,418 33,001 537 (8,901) (507) 60,351 87,899 Currency translation - - - - (2,305) - (2,305) differences Net expense recognised - - - - (2,305) - (2,305) directly in equity Profit for the six months - - - - - 34,939 34,939 ended 31 December 2006 Total recognised (expense)/ - - - - (2,305) 34,939 32,634 income for the period Purchase of own shares for (119) - 119 - - (43,707) (43,707) cancellation Issue of share capital 33 4,951 - - - - 4,984 Credit in respect of share - - - - - 4,569 4,569 scheme Dividends - - - - - (5,988) (5,988) (86) 4,951 119 - - (45,126) (40,142) Balance at 31 December 2006 3,332 37,952 656 (8,901) (2,812) 50,164 80,391 Balance at 1 January 2007 3,332 37,952 656 (8,901) (2,812) 50,164 80,391 Currency translation - - - - 13 - 13 differences Net income recognised - - - - 13 - 13 directly in equity Profit for the six months - - - - - 47,394 47,394 ended 30 June 2007 Total recognised income for - - - - 13 47,394 47,407 the period Purchase of own shares for (84) - 84 - - (44,985) (44,985) cancellation Issue of share capital 50 7,611 - - - - 7,661 Transfer to reserve for own - - - 1,048 - (1,048) - shares Credit in respect of share - - - - - 5,557 5,557 schemes Dividends - - - - - (13,979) (13,979) (34) 7,611 84 1,048 - (54,455) (45,746) Balance at 30 June 2007 3,298 45,563 740 (7,853) (2,799) 43,103 82,052 Unaudited Consolidated Interim Balance Sheet at 30 June 2007 30 June 30 June 31 December 2007 2006 2006 Note £'000 £'000 £'000 Non-current assets Property, plant and equipment 23,597 19,649 21,550 Intangible assets - Goodwill 1,539 1,539 1,539 - Computer software 1,983 2,082 2,059 Deferred tax assets 10,306 7,289 9,447 Other receivables 1,931 1,907 1,927 39,356 32,466 36,522 Current assets Trade and other receivables 174,581 131,758 143,813 Current tax receivable - 27 213 Cash and cash equivalents 10 47,111 25,846 35,587 221,692 157,631 179,613 Total assets 3 261,048 190,097 216,135 Non-current liabilities Other payables (1,397) (599) (1,130) Provisions for liabilities - (96) - Deferred tax liabilities - (230) - (1,397) (925) (1,130) Current liabilities Trade and other payables (96,467) (76,511) (83,525) Bank overdrafts 10 - (18,300) (43) Bank loans 10 (62,634) - (39,150) Current tax payable (18,402) (6,174) (11,704) Provisions for liabilities (96) (288) (192) (177,599) (101,273) (134,614) Total liabilities 3 (178,996) (102,198) (135,744) Net assets 82,052 87,899 80,391 Capital and reserves Called-up share capital 3,298 3,418 3,332 Share premium 45,563 33,001 37,952 Capital redemption reserve 740 537 656 Reserve for own shares (7,853) (8,901) (8,901) Currency translation reserve (2,799) (507) (2,812) Retained earnings 43,103 60,351 50,164 Total equity 82,052 87,899 80,391 Unaudited Consolidated Interim Statement of Cash Flows for the six months ended 30 June 2007 Six months ended Year ended 30 June 30 June 31 December 2007 2006 2006 Note £'000 £'000 £'000 Cash generated from operations 9 58,785 26,660 78,827 Income tax paid (13,168) (10,548) (21,705) Net cash from operating activities 45,617 16,112 57,122 Cash flows from investing activities Purchases of property, plant and equipment (5,421) (3,103) (9,167) Purchases of computer software (367) (251) (737) Proceeds from the sale of property, plant and 342 311 1,210 equipment, and computer software Interest received 466 376 821 Net cash used in investing activities (4,980) (2,667) (7,873) Cash flows from financing activities Dividends paid (13,979) (12,100) (18,088) Interest paid (1,058) (249) (1,209) Proceeds from bank loan 62,634 - 39,150 Repayment of bank loan (39,150) (6,700) (6,700) Issue of own shares for the exercise of options 7,661 33,206 38,190 Purchase of own shares (44,985) (39,656) (83,363) Net cash used in financing activities (28,877) (25,499) (32,020) Net increase/(decrease) in cash and cash equivalents 11,760 (12,054) 17,229 Cash and cash equivalents at the beginning of the 35,544 19,779 19,779 period Exchange losses on cash and cash equivalents (193) (179) (1,464) Cash and cash equivalents at the end of the period 10 47,111 7,546 35,544 Notes to the unaudited consolidated interim financial information 1. Corporate information Michael Page International plc is a limited liability company incorporated and domiciled within the United Kingdom whose shares are publicly traded. The consolidated interim financial statements of the Company as at and for the six months ended 30 June 2007 comprise the Company and its subsidiaries (together referred to as the "Group"). The consolidated interim financial statements of the Group for the six months ended 30 June 2007 were authorised for issue in accordance with a resolution of the directors on 20 August 2007. 2. Basis of preparation and accounting policies Basis of preparation These consolidated interim financial statements have been prepared in accordance with the recognition and measurement criteria of IFRS and the disclosure requirements of the Listing Rules. The consolidated interim financial statements are unaudited but have been reviewed by the auditors and their report is included. Nature of financial information The financial information set out above does not constitute the Group's audited statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information for the year ended 31 December 2006 has been extracted from the statutory accounts for that year which have been delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985. Significant accounting policies The accounting policies applied by the Group in these consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2006. 3. Segment reporting The consolidated entity operates in one business segment, being that of recruitment services, and this is the Group's primary segment. As a result, no additional business segment information is required to be provided. The Group's secondary segment is geography. The segment results by geography are shown below: a) Turnover, gross profit and operating profit by geographic region Turnover Gross Profit Six months ended Year ended Six months ended Year ended 30 June 30 June 31 December 30 June 30 June 31 December 2007 2006 2006 2007 2006 2006 £'000 £'000 £'000 £'000 £'000 £'000 United Kingdom 176,556 153,120 312,408 92,023 76,027 155,811 EMEA 149,244 104,392 222,993 90,446 59,301 126,577 Asia Pacific Australia 34,449 31,604 63,208 15,286 12,874 26,017 Other 12,440 9,378 20,370 11,696 8,677 18,944 Total 46,889 40,982 83,578 26,982 21,551 44,961 Americas 23,093 13,523 30,081 17,093 9,709 21,468 395,782 312,017 649,060 226,544 166,588 348,817 Operating Profit Six months ended Year ended 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 United Kingdom 28,607 19,568 44,270 EMEA 28,450 16,122 34,171 Asia Pacific Australia 5,087 4,018 8,982 Other 4,761 3,774 8,077 Total 9,848 7,792 17,059 Americas 2,926 1,595 1,867 69,831 45,077 97,367 The above analysis by destination is not materially different to analysis by origin. The analysis below is of the carrying amount of segment assets, segment liabilities and capital expenditure. 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 geographic segments exclude income tax assets and liabilities. Capital expenditure comprises additions to property, plant and equipment, motor vehicles and computer hardware/software. b) Segment assets, segment liabilities and capital expenditure by geographic region 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 2007 2006 2006 2007 2006 2006 £'000 £'000 £'000 £'000 £'000 £'000 United Kingdom 95,132 76,267 88,364 101,972 52,344 73,228 EMEA 114,770 79,858 91,281 46,647 34,535 39,734 Asia Pacific Australia 19,510 13,619 14,592 6,547 5,116 5,457 Other 13,293 9,215 10,165 1,955 1,712 2,251 Total 32,803 22,834 24,757 8,502 6,828 7,708 Americas 18,343 11,111 11,520 3,473 2,317 3,370 Segment assets/liabilities 261,048 190,070 215,922 160,594 96,024 124,040 Income tax assets/ - 27 213 18,402 6,174 11,704 liabilities 261,048 190,097 216,135 178,996 102,198 135,744 Capital Expenditure Six months ended Year ended 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 United Kingdom 2,023 947 3,113 EMEA 2,790 1,332 3,899 Asia Pacific Australia 120 229 958 Other 125 204 386 Total 245 433 1,344 Americas 730 642 1,548 5,788 3,354 9,904 c) Turnover and gross profit by discipline Turnover Gross Profit Six months ended Year ended Six months ended Year ended 30 June 30 June 31 December 30 June 30 June 31 December 2007 2006 2006 2007 2006 2006 £'000 £'000 £'000 £'000 £'000 £'000 Finance and Accounting 240,760 197,083 408,250 125,336 97,361 202,542 Marketing, Sales and 56,413 48,765 100,153 42,377 32,642 67,863 Retail Legal, Technology, HR, 62,015 45,284 96,595 33,604 21,537 46,655 Secretarial and Other Engineering, Property & 36,594 20,885 44,062 25,227 15,048 31,757 Construction, Procurement & Supply Chain 395,782 312,017 649,060 226,544 166,588 348,817 d) Turnover and gross profit generated from permanent and temporary placements Turnover Gross Profit Six months ended Year ended Six months ended Year ended 30 June 30 June 31 December 30 June 30 June 31 December 2007 2006 2006 2007 2006 2006 £'000 £'000 £'000 £'000 £'000 £'000 Permanent 186,218 132,419 276,346 176,131 124,896 261,000 Temporary 209,564 179,598 372,714 50,413 41,692 87,817 395,782 312,017 649,060 226,544 166,588 348,817 The above analyses in notes (a) operating profit by geographic region, (b) segment liabilities by geographic region, (c) turnover and gross profit by discipline (being the professions of candidates placed) and (d) turnover and gross profit generated from permanent and temporary placements have been included as additional disclosure over and above the requirements of IAS 14 " Segment Reporting". 4. Taxation The Group's consolidated effective tax rate in respect of continuing operations for the six months ended 30 June 2007 was 31.5% (30 June 2006: 32.5% , 31 December 2006: 32.5%) Six months ended Year ended 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 Tax charge United Kingdom 10,357 8,102 17,046 Overseas 11,438 6,588 14,466 Income tax expense reported in the consolidated 21,795 14,690 31,512 income statement 5. Dividends Six months ended Year ended 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 Amounts recognised as distributions to equity holders in the period: Final dividend for the year ended 31 December 2006 of 4.2p per 13,979 12,100 12,100 ordinary share (2005: 3.5p) Interim dividend for the period ended 30 June 2006 of 1.8p per - - 5,988 ordinary share 13,979 12,100 18,088 Amounts proposed as distributions to equity holders in the period: Proposed interim dividend for the six months ended 30 June 2007 of 2.4p per ordinary share (2006: 1.8p) 7,864 6,092 - The proposed interim dividend had not been approved by the Board at 30 June 2007 and therefore has not been included as a liability. The comparative interim dividend at 30 June 2006 was also not recognised as a liability in the prior period. The proposed interim dividend of 2.4 pence (2006: 1.8 pence) per ordinary share will be paid on 12 October 2007 to shareholders on the register at the close of business on 14 September 2007. 6. Share-based payments In accordance with IFRS 2 "Share-based Payment", a charge of £2.0m has been recognised for share options (including social charges) (30 June 2006: £3.2m, 31 December 2006: £4.6m), and £2.3m has been recognised for other share-based payment arrangements (including social charges) (30 June 2006: £2.0m, 31 December 2006: £3.7m). 7. 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 2007 2006 2006 Earnings Earnings for basic earnings per share (£'000) 47,394 30,508 65,447 Number of shares Weighted average number of shares used for basic earnings per share (' 330,317 336,276 334,744 000) Dilution effect of share plans ('000) 7,044 8,839 8,888 Diluted weighted average number of shares used for diluted earnings per 337,361 345,115 343,632 share ('000) Basic earnings per share (pence) 14.3 9.1 19.6 Diluted earnings per share (pence) 14.0 8.8 19.0 The above results relate to continuing operations. 8. Property, plant and equipment Acquisitions and disposals During the six months ended 30 June 2007 the Group acquired property, plant and equipment with a cost of £5.4m (30 June 2006: £3.1m, 31 December 2006: £9.2m). Property, plant and equipment with a carrying amount of £0.3m were disposed of during the six months ended 30 June 2007 (30 June 2006: £0.3m, 31 December 2006: £1.2m), resulting in a gain on disposal of £0.1m (30 June 2006: loss of £0.4m, 31 December 2006: neither a gain nor a loss). Capital commitments The Group had contractual capital commitments of £1.1m as at 30 June 2007 (30 June 2006: £1.3m, 31 December 2006: £0.6m) relating to property, plant and equipment. 9. Cash flows from operating activities Six months ended Year ended 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 Profit before tax 69,189 45,198 96,959 Depreciation and amortisation charges 3,646 3,041 6,445 (Profit) / loss on sale of property, plant and equipment, and (76) 359 (48) computer software Share scheme charges 3,048 2,045 4,168 Net finance cost / (income) 642 (121) 408 Operating cashflow before changes in working capital and 76,449 50,522 107,932 provisions Increase in receivables (30,642) (28,357) (42,376) Increase in payables 13,074 4,687 13,655 Decrease in provisions (96) (192) (384) Cash generated from operations 58,785 26,660 78,827 10. Cash and cash equivalents Six months ended Year ended 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 Cash at bank and in hand 38,365 16,654 23,355 Short term deposits 8,746 9,192 12,232 Cash and cash equivalents 47,111 25,846 35,587 Bank overdrafts - (18,300) (43) Cash and cash equivalents in the statement of cash flows 47,111 7,546 35,544 Bank loans (62,634) - (39,150) Net (debt) / funds (15,523) 7,546 (3,606) INDEPENDENT REVIEW REPORT TO MICHAEL PAGE INTERNATIONAL PLC Introduction We have been instructed by the company to review the financial information for the six months ended 30 June 2007 which comprise the consolidated income statement, the consolidated statement of changes in equity, the consolidated balance sheet, the consolidated statement of cash flows and related notes 1 to 10. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. This report is made solely to the company in accordance with Bulletin 1999/4 issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules of the Financial Services Authority which require that the accounting policies and presentation applied to the interim figures are consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with the guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of group management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with International Standards on Auditing (UK and Ireland) and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2007. Deloitte & Touche LLP Chartered Accountants London 20 August 2007 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Pagegroup (PAGE)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today