Half Year Results for the Period Ended 30 June 23

PageGroup plc

07 August 2023

 

 

7 August 2023

Half Year Results for the Period Ended 30 June 2023

PageGroup plc ("PageGroup"), the specialist professional recruitment company, announces its unaudited half year results for the period ended 30 June 2023.

Financial summary (6 months to 30 June 2023)	2023	2022	Change	Change CC*
Revenue	£1,033.9m	£977.3m	+5.8%	+3.6%
Gross profit	£526.8m	£538.9m	-2.2%	-4.4%
Operating profit	£63.9m	£115.3m	-44.6%	-47.5%
Profit before tax	£63.3m	£114.5m	-44.7%
Basic earnings per share	13.6p	25.6p	-46.9%
Diluted earnings per share	13.6p	25.5p	-46.7%
Interim dividend per share	5.13p	4.91p
Special dividend per share	15.87p	26.71p

H1 Summary

·       Group operating profit of £63.9m (H1 2022: £115.3m)

·       Conversion rate** decreased to 12.1% (H1 2022: 21.4%)

·       Gross profit per fee earner down 5.8% on H1 2022 to £79.7k (H1 2022: £82.8k)

·       Total headcount decreased by 448 (5.0%) to 8,572 at the end of June

·       Strong Balance Sheet, with net cash of £97.9m (H1 2022: £136.2m)

·       Interim dividend up 4.5% to 5.13 pence per share, totalling £16.2m

·       Special dividend of 15.87 pence per share, totalling £50.0m

·       Outlook unchanged: Full year operating profit expected to be in line with previous guidance

* in constant currencies

** operating profit as a percentage of gross profit

Commenting, Nicholas Kirk, Chief Executive Officer, said:

"The Group delivered a robust H1 performance against a record first half in 2022. EMEA delivered the standout result, delivering record H1 gross profit against a particularly strong comparator across the region. However, tough market conditions continued in Asia, the UK and the US. Overall, Group gross profit declined 4.4% in constant currencies against H1 2022. We delivered Group operating profit of £63.9m at a conversion rate of 12.1%, compared with 21.4% in H1 2022.

"The challenging conditions we saw towards the end of 2022 continued into H1 2023, with lower levels of both candidate and client confidence resulting in delays in decision making and candidates being more reluctant to accept offers. Reflecting the uncertain macro-economic conditions, temporary recruitment outperformed permanent, as clients sought more flexible options. In line with these conditions, we reduced our fee earner headcount by 558 (-8.0%) in the first half, with reductions in all regions. Our total headcount of 8,572 is 448 (-5.0%) lower than at the end of 2022. Productivity, measured as gross profit per fee earner, declined 5.8%, reflecting the reduction in gross profit, although this was partially offset by the decrease in headcount.

"We are announcing today an interim dividend of 5.13 pence per share, an increase of 4.5% over 2022. In addition, in line with our policy of returning surplus capital to shareholders, we are also announcing a special dividend of 15.87 pence per share (2022: 26.71 pence per share) totalling £50.0m. Taking these two dividend payments together, this amounts to a cash return to shareholders of £66.2m. This is in addition to the 2022 final dividend paid in June of £33.9m, resulting in a total return to shareholders in 2023 of £100.1m, or 31.76 pence per share.

"Looking forward, there remains a high level of global macro-economic and political uncertainty in the majority of our markets. However, against this backdrop, we continue to see candidate shortages and good levels of vacancies, as well as continued high fee rates. We are also seeing the benefits from our investments in innovation and technology, where Customer Connect is supporting productivity and enhancing customer experience and Page Insights is providing real time data to inform business decisions. We have a highly diversified and adaptable business model, a strong balance sheet, and our cost base is under continuous review and can be adjusted rapidly to match market conditions. Given these fundamental strengths, we believe we will continue to perform well despite the uncertainty. At this stage of the year, the Board expects 2023 operating profit to be in line with our previous guidance."

INTERIM MANAGEMENT REPORT

GROUP RESULTS

GROSS PROFIT		£m		Growth rates
	% of Group	H1 2023	H1 2022	Reported	CC
EMEA	55%	288.4	266.7	+8.1%	+4.3%
Americas	17%	89.1	94.2	-5.5%	-8.2%
Asia Pacific	16%	83.4	102.0	-18.3%	-17.3%
UK	12%	65.9	76.0	-13.2%	-13.2%
Total	100%	526.8	538.9	-2.2%	-4.4%
Permanent	74%	392.2	422.1	-7.1%	-9.1%
Temporary	26%	134.6	116.8	+15.3%	+12.5%

Revenue for the six months ended 30 June 2023 increased 5.8% to £1,033.9m (2022: £977.3m) and gross profit decreased 2.2% to £526.8m (2022: £538.9m). In constant currencies, the Group's revenue increased 3.6% and gross profit decreased 4.4%. The Group's revenue mix between permanent and temporary placements was 38:62 (2022: 44:56) and for gross profit was 74:26 (2022: 78:22). Revenue from temporary placements comprises the salaries of those placed, together with the margin charged.

Fee earner productivity decreased by 5.8% vs H1 2022 due to reduced levels of candidate and client confidence resulting in an increase in time to hire, as well as some reluctance to accept offers, limiting the number of placements per fee earner.

The Group's organic growth model and profit-based team bonus ensures costs remain tightly controlled. 77% 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 9.3% in reported rates to £462.9m (2022: £423.6m), driven largely by the higher average headcount in H1 2023 compared to H1 2022 and inflation. In constant currencies, administrative expenses were up 7.3% and operating profit decreased by 47.5% to £63.9m (2022: £115.3m), a decrease of 44.6% at reported rates. The Group's conversion rate, which represents the ratio of operating profit to gross profit, was 12.1% (2022: 21.4%) driven by the more challenging trading conditions in 2023, combined with higher costs.

OTHER ITEMS

Net interest expense of £0.5m was broadly consistent with H1 2022 (£0.8m). The effective tax rate for the first half was 31.9% (H1 2022: 28.8%), with the increase on the prior year due to the change in the UK tax rate from 19% to 25% from April 2023.

For the six months ended 30 June 2023, basic earnings per share and diluted earnings per share were both 13.6p, representing a decrease of 47% on 2022 (2022: basic earnings per share 25.6p; diluted earnings per share 25.5p).

CASH FLOW

The Group started the year with net cash of £131.5m. In H1, £83.7m was generated from operations due to H1 Operating Profit as well a net outflow of working capital due to the stronger performance in temporary recruitment. Tax paid was £27.3m and net capital expenditure was £11.3m. During the first half, £0.8m was received from exercises of share options (2022: £0.3m), £17.5m was spent on the purchase of shares into the Employee Benefit Trust (2022: £14.8m) and dividends of £33.9m were paid to shareholders (2022: £32.7m). As a result, the Group had net cash of £97.9m at 30 June 2023 (30 June 2022: £136.2m).

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 5.13 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 15.87 pence per share (2022: 26.71 pence per share) totalling £50.0m. Taking these two dividend payments together, this amounts to a cash return to shareholders of £66.2m. This is in addition to the 2022 final dividend paid in June of £33.9m, meaning a total of £100.1m, or 31.76 pence per share, returned to shareholders in 2023.

The special dividend will be paid, as in previous years, at the same time as the interim dividend on 13 October 2023 to shareholders on the register as at 1 September 2023.

During the first half, the Group made purchases of £17.5m of shares into the Employee Benefit Trust to hedge its exposure under the Group's share plans (2022: £14.8m).

GEOGRAPHICAL ANALYSIS (All growth rates given below are in constant currency vs. H1 2022 unless otherwise stated)

EUROPE, MIDDLE EAST AND AFRICA (EMEA)

EMEA	£m		Growth rates
(55% of Group in H1 2023)	H1 2023	H1 2022	Reported	CC
Revenue	580.5	523.0	+11.0%	+6.9%
Gross Profit	288.4	266.7	+8.1%	+4.3%
Operating Profit	47.8	65.3	-26.8%	-29.8%
Conversion Rate (%)	16.6%	24.5%

EMEA is the Group's largest region, contributing 55% of Group first half gross profit. Against 2022, in reported rates, revenue in the region increased 11.0% to £580.5m (2022: £523.0m) and gross profit increased 8.1% to £288.4m (2022: £266.7m). In constant currencies, revenue increased 6.9% on the first half of 2022 and gross profit increased by 4.3%.

The region was our strongest performing in H1 2023, delivering record gross profit against a particularly tough comparator. Against 2022, gross profit in Michael Page grew 3%, whilst our more temporary focused Page Personnel business was up 6%. France, 14% of Group gross profit and around a quarter of the region, delivered record gross profit against a very tough comparator, up 2% on 2022. Germany, the Group's second largest market, also delivered a record first half, up 9%. This was driven by strong performances from both our Page Personnel and our Technology focused Interim businesses, which grew 21% and 22%, respectively. Southern Europe grew 3%, with Italy down 1% and Spain up 1%. Benelux was up 4% for the first half, with the Netherlands down 1% whilst Belgium grew 15%. The Middle East and Africa grew 20%, a record H1, driven largely by a record performance in the UAE.

Productivity for the first half was down 4.3% on the record levels achieved in H1 2022, with total headcount up 220 (5.8%) versus Q2 2022. H1 operating profit was £47.8m (2022: £65.3m) with a conversion rate of 16.6% (2022: 24.5%). Profitability decreased on 2022 due the reduction in productivity, combined with the higher cost base. Headcount across the region decreased by 50 (1.2%) in the first half, to 4,035 at the end of June 2023 (4,085 at 31 December 2022).

THE AMERICAS

Americas	£m		Growth rates
(17% of Group in H1 2023)	H1 2023	H1 2022	Reported	CC
Revenue	151.0	137.3	+10.0%	+8.3%
Gross Profit	89.1	94.2	-5.5%	-8.2%
Operating Profit	5.9	13.8	-57.1%	-70.9%
Conversion Rate (%)	6.7%	14.7%

In the Americas, representing 17% of Group first half gross profit, revenue increased 10.0% in reported rates against 2022, to £151.0m (2022: £137.3m), while gross profit declined 5.5% to £89.1m (2022: £94.2m). In constant currencies against 2022, revenue increased by 8.3% and gross profit declined 8.2%.

North America declined against 2022, a record comparator, with the US down 16%. Conditions remained tough throughout the first half, as uncertainty around market conditions impacted candidate and client confidence, and we experienced a higher level of candidate buybacks.

Latin America delivered growth of 4%. Mexico, our largest country in the region, declined 6% and Brazil declined 11%. Elsewhere in Latin America, our other five countries in the region grew 24%, collectively, with Argentina, Colombia and Panama all delivering record first halves.

For the region overall, productivity in H1 decreased 3.6% compared with H1 2022, with North America down 9% and Latin America up 7%. Operating profit was £5.9m (2022: £13.8m), with a conversion rate of 6.7% (2022: 14.7%). Our conversion rate was down on H1 2022, due to the lower productivity and higher cost base. Headcount across the region decreased by 190 (11.3%) in H1, to 1,500 at the end of June 2023 (1,690 at 31 December 2022).

ASIA PACIFIC

Asia Pacific	£m		Growth rates
(16% of Group in H1 2023)	H1 2023	H1 2022	Reported	CC
Revenue	149.8	159.3	-6.0%	-4.7%
Gross Profit	83.4	102.0	-18.3%	-17.3%
Operating Profit	4.5	20.9	-78.7%	-75.9%
Conversion Rate (%)	5.3%	20.5%

In Asia Pacific, representing 16% of Group first half gross profit, revenue decreased 6.0% in reported rates to £149.8m (2022: £159.3m) and gross profit decreased 18.3% to £83.4m (2022: £102.0m), against 2022. In constant currencies, revenue decreased 4.7% in H1 and gross profit decreased 17.3%.

Gross profit in Greater China declined 37%. In Mainland China, gross profit was down 42% on 2022, due to the slower than anticipated recovery following the lifting of COVID restrictions during H1. Hong Kong declined 28%. South East Asia declined 18%, with Singapore down 22%, whilst the other five countries in the region declined 17%, collectively. India grew 3% and delivered a record H1, against a very strong comparator. Overall, for the first half, Japan declined 3% and Australia declined 2%.

First half productivity was down 13.6% on 2022, due to the continued challenging trading conditions across the region. We delivered £4.5m of operating profit (2022: £20.9m) at a conversion rate of 5.3% (2022: 20.5%), significantly behind the comparative period due to the much tougher trading conditions. Headcount across the region decreased by 111 in the first half (6.0%) to 1,731 at the end of June 2023 (1,842 at 31 December 2022).

UNITED KINGDOM

UK	£m		Growth rate
(12% of Group in H1 2023)	H1 2023	H1 2022
Revenue	152.5	157.7	-3.2%
Gross Profit	65.9	76.0	-13.2%
Operating Profit	5.7	15.3	-62.9%
Conversion Rate (%)	8.6%	20.1%

In the UK, representing 12% of Group first half gross profit, revenue decreased 3.2% vs. 2022 to £152.5m (2022: £157.7m) and gross profit declined 13.2% to £65.9m (2022: £76.0m).

Gross profit in our Michael Page business was down 17% in the first half. Page Personnel, which operates at lower salary levels with a higher degree of temporary recruitment, was down 5%.

First half productivity was down 8.5% on the prior year, with H1 2022 being at record levels. Operating profit was £5.7m (2022: £15.3m) and our conversion rate was 8.6% (2022: 20.1%). This weaker conversion rate was due primarily to the more challenging trading conditions, combined with a higher cost base than in the prior year. Headcount was down 97 (6.9%) during the first half to 1,307 at the end of June 2023 (1,404 at 31 December 2022).

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 2023: Trading conditions continued to be challenging through the first half of 2023 which resulted in a decline in gross profit of -2.2% vs. H1 2022 in reported rates and -4.4% in 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 2023: Geographies: the percentage outside the UK increased to 87.5% (H1 2022: 85.9%), due to the strong H1 gross profit growth in EMEA, whilst all other regions were in decline. Disciplines: the percentage outside of Accounting and Financial Services was broadly in line with H1 2022 at 68.2% (H1 2022: 68.8%). 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 2023: 74% of our gross profit was generated from permanent placements, below the 78% in 2022. Permanent recruitment declined 9.1% in constant currencies against 2022, whilst temporary recruitment, grew 12.5%. This reflects the current economic climate, with clients looking for more flexibility in their hiring decisions. 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 2023: Gross profit per fee earner of £79.7k was down 5.8% vs. 2022 in constant currencies. Although we continued to see the benefits of video interviewing reducing time to hire, combined with the data and technology investments made by the Group in recent years, trading conditions were significantly more challenging than in H1 2022. 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 2023: Operating profit as a percentage of gross profit decreased to 12.1% compared to the prior year (H1 2022: 21.4%), driven by the reduced productivity and higher cost base. 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 2023: Earnings per share (EPS) in H1 2023 was 13.6p, a decrease of 46.9% on the 2022 EPS of 25.6p. The decline is due to the lower profit for the period, driven by the more adverse trading conditions. Relevant strategic objective: Build for the long-term, organic 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 2023: Net fee earner headcount decreased by 558 (8.0%) in H1 2023, resulting in 6,385 fee earners at the end of June. We have reduced our fee earner headcount in all regions, in response to the more challenging trading conditions. 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 2023: Net cash at 30 June 2023 was £97.9m (H1 2022: £136.2m). The 2023 balance is after the payment of the 2022 final dividend of £33.9m and the purchase of shares into the Employee Benefit Trust of £17.5m (H1 2022: £14.8m). 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 2022 on pages 56 to 64.

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 December 2027, with a total drawable amount of £80m. Neither of these facilities were in use as at 30 June 2023. 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 continue to evolve alongside our business. In April 2023, we published our third sustainability report, highlighting the progress we've made on our four Sustainability goals over the course of 2022. This includes:

·    Changing 135,000 lives in 2022

·    Increasing our proportion of women in leadership roles to 43%

·    Decreasing our scope 1 & 2 emissions by 30% vs 2021

·    Increasing net fees from our sustainability business by 120% vs 2021

H1 2023 has delivered continued and strong progress against all key targets. We have also committed to set a Science-based Target and are working on our submission to the Science-based Target Initiative.

We are now well on our way to reaching our sustainability goals, as we strive to support the transition to a more equitable and greener society. 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 2024 (review period).

The Group had £97.9m of cash as at 30 June 2023, with no debt except for IFRS 16 lease liabilities of £103.6m. Debt facilities relevant to the review period comprise a committed £80m RCF maturing December 2027, an uncommitted UK trade debtor discounting facility (up to £50m depending on debtor levels) and an uncommitted £20m UK bank overdraft facility. None of these facilities were in use as at 30 June 2023.

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 liquidity issue. Having considered the Group's forecasts, the level of cash resources available to the business and the Group's borrowing facilities, the Group's geographical and discipline diversification, limited concentration risk, as well as the ability to manage the cost base, the Board has concluded that the Group and therefore the Company has adequate resource to continue in operation existence for the period through to August 2024.

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,

Nicholas Kirk	Kelvin Stagg
Chief Executive Officer	Chief Financial Officer
4 August 2023	4 August 2023

PageGroup will host a conference call, with on-line slide presentation, for analysts and investors at 8.30am on 7 August 2023, the details of which are below.

Link:

https://www.investis-live.com/pagegroup/64b938709b8a600d00c5206e/paau

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

United Kingdom (Local)	020 4587 0498
All other locations	[phone]

Please quote participant access code 51 80 95 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 7 August 2023 at:

https://www.page.com/presentations/year/2023

Enquiries:

PageGroup	[phone]
Nicholas Kirk, 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 2023 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 2023 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" (ISRE) 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

4th August 2023

Condensed Consolidated Income Statement

For the six months ended 30 June 2023

			Six months ended				Year ended
			30 June		30 June		31 December
			2023		2022		2022
			Unaudited		Unaudited		Audited
	Note		£'000		£'000		£'000
Revenue	3		1,033,886		977,257		1,990,287
Cost of sales			(507,095)		(438,354)		(913,993)
Gross profit	3		526,791		538,903		1,076,294
Administrative expenses			(462,934)		(423,586)		(880,215)
Operating profit	3		63,857		115,317		196,079
Financial income	4		829		392		1,104
Financial expenses	4		(1,378)		(1,212)		(2,817)
Profit before tax	3		63,308		114,497		194,366
Income tax expense	5		(20,176)		(33,000)		(55,354)
Profit for the period			43,132		81,497		139,012
Attributable to:
Owners of the parent			43,132		81,497		139,012
Earnings per share
Basic earnings per share (pence)	8		13.6		25.6		43.7
Diluted earnings per share (pence)	8		13.6		25.5		43.5

The above results all relate to continuing operations

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2023

		Six months ended				Year ended
		30 June		30 June		31 December
		2023		2022		2022
		Unaudited		Unaudited		Audited
		£'000		£'000		£'000
Profit for the period		43,132		81,497		139,012
Other comprehensive (loss)/income for the period
Items that may subsequently be reclassified to profit and loss:
Currency translation differences		(13,997)		10,968		15,441
Total comprehensive income for the period		29,135		92,465		154,453
Attributable to:
Owners of the parent		29,135		92,465		154,453

Condensed Consolidated Balance Sheet

As at 30 June 2023

			30 June		30 June		31 December
			2023		2022		2022
			Unaudited		Unaudited		Audited
	Note		£'000		£'000		£'000
Non-current assets
Property, plant and equipment	9		37,665		33,251		36,123
Right-of-use assets			93,395		93,188		100,996
Intangible assets - Goodwill and other intangible			1,859		2,036		1,955
- Computer software			33,880		42,740		38,045
Deferred tax assets			20,421		19,941		18,641
Other receivables	10		12,890		12,989		13,224
			200,110		204,145		208,984
Current assets
Trade and other receivables	10		411,725		441,274		437,247
Current tax receivable			21,095		22,048		17,233
Cash and cash equivalents	13		97,939		136,227		131,480
			530,759		599,549		585,960
Total assets	3		730,869		803,694		794,944
Current liabilities
Trade and other payables	11		(258,308)		(256,958)		(289,108)
Provisions	12		(3,737)		(2,236)		(2,772)
Lease liabilities			(32,984)		(29,746)		(31,268)
Current tax payable			(15,457)		(32,785)		(18,050)
			(310,486)		(321,725)		(341,198)
Net current assets			220,273		277,824		244,762
Non-current liabilities
Other payables	11		(8,455)		(13,883)		(14,951)
Lease liabilities			(70,643)		(71,878)		(78,564)
Deferred tax liabilities			(2,619)		(1,475)		(1,345)
Provisions	12		(4,812)		(7,443)		(6,683)
			(86,529)		(94,679)		(101,543)
Total liabilities	3		(397,015)		(416,404)		(442,741)
Net assets			333,854		387,290		352,203
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			(73,123)		(56,875)		(56,626)
Currency translation reserve			18,341		27,865		32,338
Retained earnings			284,854		312,518		272,709
Total equity			333,854		387,290		352,203

Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 June 2023

									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 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 the 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
Currency translation differences	-		-			-			-		4,473		-		4,473
Net income recognised directly in equity	-		-			-			-		4,473		-		4,473
Profit for the six months ended 31 December 2022	-		-			-			-		-		57,515		57,515
Total comprehensive income for the period	-		-			-			-		4,473		57,515		61,988
Purchase of shares held in the employee benefit trust	-		-			-			(1)		-		-		(1)
Exercise of share plans	-		-			-			-		-		171		171
Reserve transfer when shares held in the employee benefit trust vest	-		-			-			250		-		(250)		-
Credit in respect of share schemes	-		-			-			-		-		3,067		3,067
Credit in respect of tax on share schemes	-		-			-			-		-		195		195
Dividends	-		-			-			-		-		(100,507)		(100,507)
	-		-			-			249		-		(97,324)		(97,075)
Balance at 31 December 2022	3,286		99,564			932			(56,626)		32,338		272,709		352,203
Balance at 1 January 2023	3,286		99,564			932			(56,626)		32,338		272,709		352,203
Currency translation differences	-		-			-			-		(13,997)		-		(13,997)
Net expense recognised directly in equity	-		-			-			-		(13,997)		-		(13,997)
Profit for the six months ended 30 June 2023	-		-			-			-		-		43,132		43,132
Total comprehensive (expense)/income for the period	-		-			-			-		(13,997)		43,132		29,135
Purchase of shares held in employee benefit trust	-		-			-			(17,529)		-		-		(17,529)
Exercise of share plans	-		-			-			-		-		759		759
Reserve transfer when shares held in the employee benefit trust vest	-		-			-			1,032		-		(1,032)		-
Credit in respect of share schemes	-		-			-			-		-		2,462		2,462
Credit in respect of tax on share schemes	-		-			-			-		-		713		713
Dividends	-		-			-			-		-		(33,889)		(33,889)
	-		-			-			(16,497)		-		(30,987)		(47,484)
Balance at 30 June 2023	3,286		99,564			932			(73,123)		18,341		284,854		333,854

Condensed Consolidated Statement of Cash Flows

For the six months ended 30 June 2023

			30 June		30 June		31 December
			2023		2022		2022
			Unaudited		Unaudited		Audited
			£'000		£'000		£'000
	Note
Profit before tax			63,308		114,497		194,366
Depreciation, amortisation charges and expense of computer software			31,913		33,519		60,592
Loss on sale of property, plant and equipment			144		43		4,398
Share scheme charges			2,468		2,923		5,989
Net finance costs			549		820		1,713
Operating cash flow before changes in working capital			98,382		151,802		267,058
Decrease/(increase) in receivables			13,375		(71,612)		(61,509)
(Decrease)/increase in payables			(28,045)		12,309		40,821
Cash generated from operations			83,712		92,499		246,370
Income tax paid			(27,337)		(30,023)		(61,598)
Net cash from operating activities			56,375		62,476		184,772
Cash flows from investing activities
Purchases of property, plant and equipment			(9,530)		(12,723)		(21,982)
Purchases and capitalisation of intangible assets			(1,848)		(6,558)		(9,693)
Proceeds from the sale of property, plant and equipment, and computer software			85		336		2,080
Interest received			829		392		1,104
Net cash used in investing activities			(10,464)		(18,553)		(28,491)
Cash flows from financing activities
Dividends paid			(33,889)		(32,740)		(133,247)
Interest paid			(266)		(527)		(1,213)
Lease liability repayment			(18,779)		(17,047)		(35,896)
Issue of own shares for the exercise of options			759		276		447
Purchase of shares into the employee benefit trust			(17,529)		(14,837)		(14,838)
Net cash used in financing activities			(69,704)		(64,875)		(184,747)
Net decrease in cash and cash equivalents			(23,793)		(20,952)		(28,466)
Cash and cash equivalents at the beginning of the period			131,480		153,983		153,983
Exchange (loss)/gain on cash and cash equivalents			(9,748)		3,196		5,963
Cash and cash equivalents at the end of the period	13		97,939		136,227		131,480

Notes to the condensed set of interim results

For the six months ended 30 June 2023

1.         General information

The information for the year ended 31 December 2022 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 2023 were authorised for issue in accordance with a resolution of the directors on 4 August 2023.

2.         Accounting policies

Basis of preparation

The unaudited interim condensed consolidated financial statements for the six months ended 30 June 2023 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 2022, were approved by the directors on 9 March 2023.  The interim condensed consolidated financial statements should be read in conjunction with the Annual Report and Accounts for the year ended 31 December 2022, which have been prepared in accordance with UK-adopted international accounting standards ("IFRSs").

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 2024 (review period).

The Group had £97.9m of cash as at 30 June 2023, with no debt except for IFRS 16 lease liabilities of £103.6m. Debt facilities relevant to the review period comprise a committed £80m RCF maturing December 2027, an uncommitted UK trade debtor discounting facility (up to £50m depending on debtor levels) and an uncommitted £20m UK bank overdraft facility. None of these facilities were in use as at 30 June 2023.

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 liquidity issue. Having considered the Group's forecasts, the level of cash resources available to the business and the Group's borrowing facilities, the Group's geographical and discipline diversification, limited concentration risk, as well as the ability to manage the cost base, the Board has concluded that the Group and therefore the Company has adequate resource to continue in operation existence for the period through to August 2024.

New accounting standards, interpretations and amendments adopted by the Group

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2022. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

The IASB published on 23 May 2023 International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) which was adopted by the UKEB on 19th July 2023.  Page Group has applied the mandatory temporary exception to the accounting for deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules to our FY23 Interim reporting.

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
	2023		2022		2022		2023		2022		2022
	£'000		£'000		£'000		£'000		£'000		£'000
EMEA	580,539		522,981		1,069,346		288,400		266,683		538,488
Asia Pacific	149,842		159,329		318,359		83,416		102,046		195,276
Americas	150,971		137,302		282,942		89,047		94,188		193,397
United Kingdom	152,534		157,645		319,640		65,928		75,986		149,133
	1,033,886		977,257		1,990,287		526,791		538,903		1,076,294
							Operating Profit
							Six months ended				Year ended
							30 June		30 June		31 December
							2023		2022		2022
							£'000		£'000		£'000
EMEA							47,818		65,283		122,079
Asia Pacific							4,458		20,952		35,244
Americas							5,927		13,822		17,885
United Kingdom							5,654		15,260		20,871
Operating profit							63,857		115,317		196,079
Financial expense							(549)		(820)		(1,713)
Profit before tax							63,308		114,497		194,366

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
	2023		2022		2022			2023		2022		2022
	£'000		£'000		£'000			£'000		£'000		£'000
EMEA	320,385		315,833		338,251			249,084		210,853		248,585
Asia Pacific	108,769		142,008		128,299			62,871		64,930		69,995
Americas	109,488		115,299		116,647			51,310		47,642		60,635
United Kingdom	171,132		208,506		194,514			18,293		60,194		45,476
Segment assets/liabilities	709,774		781,646		777,711			381,558		383,619		424,691
Income tax	21,095		22,048		17,233			15,457		32,785		18,050
	730,869		803,694		794,944			397,015		416,404		442,741
	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
	2023		2022		2022			2023		2022		2022
	£'000		£'000		£'000			£'000		£'000		£'000
EMEA	15,092		12,730		14,072			2,122		2,197		2,296
Asia Pacific	5,041		6,383		6,194			58		172		110
Americas	6,899		7,542			7,378		4		6		5
United Kingdom	10,633		6,596		8,479			33,555		42,401		37,589
	37,665		33,251		36,123			35,739		44,776		40,000

	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
	2023		2022		2022			2023		2022		2022
	£'000		£'000		£'000			£'000		£'000		£'000
EMEA	60,292		52,621		61,760			66,967		56,130		65,136
Asia Pacific	15,110		16,493		17,415			15,715		17,509		20,042
Americas	10,026		10,072			11,950		12,676		12,943		14,434
United Kingdom	7,967		14,002		9,871			8,269		15,042		10,220
	93,395		93,188		100,996			103,627		101,624		109,832

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
	2023		2022		2022		2023		2022		2022
	£'000		£'000		£'000		£'000		£'000		£'000
Permanent	395,569		426,975		832,014		392,202		422,133		826,321
Temporary	638,317		550,282		1,158,273		134,589		116,770		249,973
	1,033,886		977,257		1,990,287		526,791		538,903		1,076,294

(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
	2023		2022		2022			2023		2022		2022
	£'000		£'000		£'000			£'000		£'000		£'000
EMEA	199,879		192,132		380,002			380,660		330,849		689,344
Asia Pacific	70,690		89,854		170,029			79,152		69,475		148,330
Americas	78,073		84,974			170,970		72,898		52,328		111,972
United Kingdom	46,927		60,015		111,013			105,607		97,630		208,627
	395,569		426,975		832,014			638,317		550,282		1,158,273

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
	2023		2022		2022		2023		2022		2022
	£'000		£'000		£'000		£'000		£'000		£'000
Accounting and Financial Services	367,273		354,229		720,783		167,433		168,391		343,659
Legal, Technology, HR, Secretarial and Other	352,448		321,332		667,543		162,281		167,871		334,772
Engineering, Property & Construction, Procurement & Supply Chain	217,835		199,154		400,959		127,689		126,735		251,686
Marketing, Sales and Retail	96,330		102,542		201,002		69,388		75,906		146,177
	1,033,886		977,257		1,990,287		526,791		538,903		1,076,294

(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
	2023		2022		2022		2023		2022		2022
	£'000		£'000		£'000		£'000		£'000		£'000
Large, Proven markets	524,692		505,917		1,015,599		241,961		245,429		483,627
Large, High Potential markets	359,314		334,214		688,925		194,274		208,007		417,296
Small and Medium, High Margin markets	149,880		137,126		285,763		90,556		85,467		175,371
	1,033,886		977,257		1,990,287		526,791		538,903		1,076,294

4.         Financial income / (expenses)

	Six months ended			Year ended
	30 June		30 June		31 December
	2023		2022		2022
	£'000		£'000		£'000
Financial income
Bank interest receivable	829		392		1,104
Financial expenses
Bank interest payable	(266)		(527)		(1,213)
Interest on lease liabilities	(1,112)		(685)		(1,604)
	(1,378)		(1,212)		(2,817)

5.         Income tax expense

Taxation for the six month period is charged at 31.9% (six months ended 30 June 2022: 28.8%; year ended 31 December 2022: 28.5%), 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
	2023		2022		2022
	£'000		£'000		£'000
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended 31 December 2022 of 10.76p per ordinary share (2021: 10.30p)	33,889		32,740		32,740
Interim dividend for the period ended 30 June 2022 of 4.91p per ordinary share (2021: 4.70p)	-		-		15,607
Special dividend for the year ended 31 December 2022 of 26.71p per ordinary share (2021: 0p)	-		-		84,900
	33,889		32,740		133,247
Amounts proposed as distributions to equity holders in the period:
Proposed interim dividend for the period ended 30 June 2023 of 5.13p per ordinary share (2022: 4.91p)	16,161		15,607
Proposed special dividend for the year ended 31 December 2023 of 15.87p per ordinary share (2022: 26.71p)	50,000		84,900
Proposed final dividend for the year ended 31 December 2022 of 10.76p per ordinary share	-		-		34,207

The proposed interim and special dividends have not been approved by the Board at 30 June 2023 and therefore have not been included as a liability. The comparative interim and special dividends at 30 June 2022 were also not recognised as a liability in the prior period.

The proposed interim dividend of 5.13p (2022: 4.91p) per ordinary share and special dividend of 15.87p (2022: 26.71p) per ordinary share will be paid on 13 October 2023 to shareholders on the register at the close of business on 1 September 2023.

7.         Share-based payments

In accordance with IFRS 2 "Share-based Payment", a charge of £2.6m has been recognised for share options and other share-based payment arrangements (including social charges) (30 June 2022: £2.1m, 31 December 2022: £6.0m).

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	2023		2022		2022
Earnings for basic and diluted earnings per share (£'000)	43,132		81,497		139,012
Number of shares
Weighted average number of shares used for basic earnings per share ('000)	316,436		318,473		318,166
Dilution effect of share plans ('000)	1,494		843		1,204
Diluted weighted average number of shares used for diluted earnings per share ('000)	317,930		319,316		319,370
Basic earnings per share (pence)	13.6		25.6		43.7
Diluted earnings per share (pence)	13.6		25.5		43.5

The above results all relate to continuing operations.

9.         Property, plant and equipment

Acquisitions

During the period ended 30 June 2023 the Group acquired property, plant and equipment with a cost of £9.5m (30 June 2022: £12.7m).

10.        Trade and other receivables

	30 June		30 June		31 December
	2023		2022		2022
	£'000		£'000		£'000
Current
Trade receivables	272,047		306,557		320,794
Less allowance for expected credit losses	(12,429)		(12,361)		(12,960)
Net trade receivables	259,618		294,196		307,834
Other receivables	7,149		4,658		21,535
Accrued income (net of revenue reversals)	112,278		112,994		88,951
Prepayments	32,680		29,426		18,927
	411,725		441,274		437,247
Non-current
Other receivables	12,890		12,989		13,224

11.        Trade and other payables

	30 June		30 June		31 December
	2023		2022		2022
	£'000		£'000		£'000
Current
Trade payables	3,192		5,023		11,101
Other tax and social security	50,593		45,368		61,079
Other payables	17,676		35,847		36,629
Accruals	186,847		170,720		180,299
	258,308		256,958		289,108
Non-current
Accruals	8,455		13,883		14,529
Other tax and social security	-		-		422
	8,455		13,883		14,951

12.        Provisions

	30 June		30 June		31 December
	2023		2022		2022
	£'000		£'000		£'000
Dilapidations	6,528		7,212		7,128
NI on share schemes	694		954		844
Other	1,327		1,513		1,483
	8,549		9,679		9,455
Current	3,737		2,236		2,772
Non-Current	4,812		7,443		6,683
	8,549		9,679		9,455

13.        Cash and cash equivalents

	30 June		30 June		31 December
	2023		2022		2022
	£'000		£'000		£'000
Cash at bank and in hand	97,939		136,227		131,480
Short-term deposits	-		-		-
Cash and cash equivalents	97,939		136,227		131,480
Cash and cash equivalents in the statement of cash flows	97,939		136,227		131,480

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

N Kirk	K Stagg
Chief Executive Officer	Chief Financial Officer

4 August 2023

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/2023

 

END