Final Results
Michael Page International PLC
26 February 2003
February 2003
MICHAEL PAGE INTERNATIONAL PLC
Full Year Results for the period ended 31 December 2002
Michael Page International plc ("Michael Page"), the specialist professional
recruitment company, announces its full year results for the period ended 31
December 2002.
Key Points
• Revenue of £192.6m, despite challenging trading conditions
• Profit before tax of £32.6m, in line with expectations
• Earnings per share of 5.8p
• Strong cash generation, with cash generated from operating activities
of £46.7m
• Dividend maintained at 3.4p
• 11.3m shares bought back at a cost of £13.7m
• Increased global market presence, now in 16 countries
• Hubert Reid appointed as non-executive director
Commenting on the results, Terry Benson, Chief Executive of Michael Page, said:
"Despite the challenging trading conditions Michael Page has produced a solid
performance. Given the nature of our business, we are clearly not immune to
economic cycles, but we have a strong brand and an experienced management team
which continues to focus on building for the future.
"The short-term outlook suggests that 2003 will be another challenging year with
revenue for the first two months of 2003 expected to be approximately 15% below
that of the first two months of 2002. Rigorous cost control remains imperative,
however we are determined not to enhance short-term profitability at the expense
of the Group's long-term prosperity. We remain focused on our core competency of
specialist recruitment and are convinced that when conditions improve there are
numerous opportunities to profitably expand our business."
Enquiries:
Michael Page International plc 020 7269 2205
Terry Benson, Chief Executive
Stephen Puckett, Finance Director
Financial Dynamics 020 7269 7291
David Yates/Rob Gurner
Chairman's Statement
As anticipated, 2002 was a challenging year characterised by slowing economies,
deteriorating business confidence and political uncertainty. These conditions
have impacted directly upon the professional employment markets and consequently
on the results of the Group. Given these difficult conditions our results and
financial position are testament to our overall strategy of cautious organic
development and the strength of the Michael Page brand, its management, staff,
systems and processes.
Financial highlights
As a consequence of these difficult trading conditions, turnover for the year
ended 31 December 2002 was 16.6% lower at £383.5m (2001: £459.5m). Temporary
placement activity has been more resilient than permanent and this shift in
business mix contributed to a revenue (gross profit) reduction of 21.4% to
£192.6m (2001: £245.1m). Given the Group's high operational gearing, operating
profit reduced by 49.8% to £32.1m (2001: £64.0m before exceptional items).
Profit before tax was £32.6m (2001: £59.9m before exceptional items) and
earnings per share were 5.8p (2001: 10.6p before exceptional items).
Cash flow was again very strong during the year with the Group generating £46.7m
(2001: £75.9m) from operating activities. At 31 December 2002 the Group had net
cash of £21.4m (2001: £14.3m) after repurchasing for cancellation 11.3m shares
at a cost of £13.7m.
Dividends and share buy back
Despite the reduction in profits the Board is recommending that the dividend be
maintained at last year's level (assuming the shares had been listed for the
whole of 2001). A final dividend of 2.3p (2001: 2.3p) per ordinary share is
proposed which, together with the interim dividend of 1.1p (2001: 0.275p) per
ordinary share paid in October, makes a total dividend for the year of 3.4p
(2001: 2.575p) per ordinary share. The final dividend will be paid on 6 June
2003 to those shareholders on the register at 9 May 2003. The total dividend is
covered 1.7 times by earnings per share of 5.8p and 2.6 times by cash earnings
per share of 9.0p.
In August 2002, following a detailed review of the Group's balance sheet and an
assessment of the most appropriate uses for the excess cash generated by the
business, we announced our intention to repurchase up to £40m of shares over a
12-month period. To date we have repurchased 11.3m shares at an average price of
121p. Our decision to repurchase followed three consecutive quarters of stable
revenue generation of around £50.0m per quarter, and an assumption that
conditions would not deteriorate. We have now experienced two slower quarters
and as a consequence we cannot now be as definitive about the amount and timing
of our repurchase programme. However we do anticipate share repurchases being an
ongoing use of surplus cash and accordingly will be seeking shareholders'
consent for a renewal of the repurchase authority at the Annual General Meeting
on 22 May 2003.
Employees
In January 2002 the Group had 2,657 employees. As business activity has slowed,
staff numbers have reduced to 2,390 at 31 December 2002. Despite the
difficulties of the year, the commitment, loyalty and efforts of the Group's
staff have maintained your Company's position as the international leader in the
specialist recruitment industry.
Appointment of Non-Executive Director
I am pleased to announce the appointment of Hubert Reid as Non-Executive
Director of the company with immediate effect. Hubert is Chairman of Enterprise
Inns plc and the Royal London Mutual Insurance Society Limited, Deputy Chairman
of Majedie Investments PLC and a Non-Executive Director of the Taverners Trust
PLC. He was previously Managing Director and then Chairman of the Boddington
Group plc and Chairman of Ibstock Plc and Bryant Group plc. He was appointed a
Non-Executive Director of Michael Page International plc on 25 February 2003.
Current trading and future prospects
Activity levels slowed going into the fourth quarter of 2002 and this weakening
has continued into the first quarter of 2003. We expect revenue for the first
two months of 2003 to be approximately 15% below that of the first two months of
2002.
Recruitment is a business that is highly geared to economic cycles. We have now
experienced consecutive years of weakening conditions and lowering of business
confidence. Your Board believes that conditions in the professional employment
sector should eventually improve as and when we move through the current cycle.
We therefore remain committed to continuing to make sensible and cautious
decisions and investments for the longer-term benefit of the Group and its
shareholders.
Adrian Montague
Chairman
26 February 2003
Chief Executive's Review
I am pleased to report our achievements in 2002, a year in which we continued to
invest in the business and generated over £32m of profits and £46m of cash from
operations.
2002 has, however, been a difficult year, particularly in the second half, and
as always, we have maintained our close control over costs. We started the year
with 2,657 fee generating and support staff operating from 109 offices in 14
countries. Early in the year we extended our geographical coverage by opening
offices in Sweden and Belgium. By 31 December 2002 we had lowered the number of
fee generating and support staff to 2,390 and with the reduced headcount, taken
the opportunity to rationalise some of our properties whilst maintaining our
market presence. At 31 December 2002 we have 107 offices in 16 countries. With
the reduced staff levels and after taking account of pay awards in line with
inflation made to staff in January 2003, our pre bonus cost base as we start
2003 is just over £12m per month.
United Kingdom
In the UK, turnover reduced by 18.2% to £203.9m (2001: £249.4m) and revenue by
20.4% to £99.3m (2001: £124.7m). Operating profits were lower at £20.5m (2001:
£35.0m before exceptional items). Activity in the UK operations was relatively
even during the first half of the year but slowed, particularly into the fourth
quarter, as the pick up from the usually quiet summer months was less
significant than in previous years.
During 2002 we increased our market presence largely by expanding the
non-finance disciplines into existing offices. The Retail and Legal businesses
now each operate from seven locations throughout the country. The newer
disciplines of Human Resources and Engineering now operate from four and three
locations respectively.
The revenues of the finance and accounting businesses of Michael Page Finance,
Michael Page City and Accountancy Additions, which generate approximately two
thirds of UK revenue, were 19% lower than in 2001.
The weakest client sector of these businesses has been financial services,
particularly in the City, where many institutions have shed staff and imposed
hiring freezes. Accountancy Additions, which specialises in lower level
accounting positions, has been least affected by the slowdown. We continue to
expand this business with new openings in Birmingham and Coventry. These offices
represent the start of a planned network of offices throughout the Midlands.
The revenues of the Michael Page Marketing, Michael Page Sales and Michael Page
Retail businesses, which generate approximately 22% of UK revenue, were 22%
lower than in 2001. Marketing and Sales, which initially suffered from the
downturn in the telecoms and technology sectors, have experienced a weakening in
most other sectors. The Retail business has performed better, in line with the
general retail sector.
Of the smaller UK businesses Michael Page Technology, not surprisingly given the
depressed IT market, was the weakest performer but was still profitable, which
we believe is an achievement given current conditions. Michael Page Legal,
whilst revenue was lower than in 2001, recorded a stronger second half of 2002.
The newer businesses, Michael Page Human Resources and Michael Page Engineering
both grew revenue in the year and increased their market presence. All of these
businesses provide growth opportunities as they expand into the national network
of Michael Page offices.
The central London Michael Page businesses currently operate from three main
locations. The lease of one of these premises has recently expired and
consequently at the end of the first quarter of 2003 we will be completing a
significant relocation of fee earning and support staff to a new building in
Bloomsbury Square. Capital expenditure associated with the new building will be
£2.0m in 2003.
Continental Europe
In our Continental European businesses turnover was 17.4% lower at £127.6m
(2001: £154.3m) and revenue 27.6% lower at £66.3m (2001: £91.6m). The downturn
in activity, particularly in the second half of the year, has been more
pronounced in Continental Europe where a greater proportion of permanent
placements are made on a retained basis compared to UK where the majority of
assignments are on a contingent basis. The downturn in activity combined with
start up losses in Sweden and Belgium resulted in lower operating profits of
£5.6m (2001: £22.5m before exceptional items).
France, our second largest geographic market after the UK, has been a
particularly tough market with revenue from permanent placements 39.4% lower
than 2001. Page Interim, the temporary business, performed better with temporary
placements again proving more resilient in depressed markets. During the year we
started Michael Page Conseil, a business providing consultants to clients on a
contract basis but, unlike our temporary business, the consultants are employees
of Michael Page. At 31 December 2002 we employed 105 consultants and these are
included as a separate category of staff in our total number of employees.
During the year we opened new offices in Rotterdam, Stockholm and Brussels. Page
Interim has also been extended to Germany and The Netherlands.
Asia Pacific
Turnover for the Asia Pacific operations was 9.0% lower at £46.7m (2001: £51.3m)
and revenue was 7.9% lower at £22.9m (2001: £24.9m). These amounts include a
full year's contribution from our Tokyo office, which opened in June 2001 and
significantly exceeded our expectations by almost breaking even for the year.
The lower revenues in the remainder of the region resulted in operating profit
reducing to £6.8m (2001: £7.2m before exceptional items).
In Australia the economy has been stronger than in any of our other major
markets. However, the global economic slowdown has reduced demand from a large
number of our international clients particularly in the banking and financial
services, telecoms and IT sectors. This affected our offices in Sydney more so
than in Melbourne and Perth where there is a greater proportion of domestic
clients. During the year we extended the number of disciplines by starting Human
Resources in Sydney and Melbourne, and Engineering in Melbourne.
Our businesses in Hong Kong and Singapore are both heavily dependent on
international banking, telecoms and IT clients. Activity levels, particularly in
banking, were very low at the start of the year but improved from the end of the
first quarter.
We are greatly encouraged by the success of our Tokyo office, which generated
over £1m of revenue in the year. Further cautious expansion of our staff numbers
is planned for 2003.
The Americas
Turnover for the region was £5.4m (2001: £4.5m) and revenue increased to £4.1m
(2001: £3.9m). The increased revenue was insufficient to prevent the region
reporting a further operating loss of £0.7m (2001: £0.7m loss before exceptional
items).
In the USA we increased our presence by opening an office in New Jersey at the
end of 2001. However, 2002 has proved to be another difficult year and we have
not progressed as well as planned. Consequently there were a number of
management changes during the summer, including the transfer of one of our most
experienced senior executives to New York, as Managing Director. We remain fully
committed to the US market and anticipate opening a third office on the East
coast during the course of 2003.
Our office in Sao Paulo, Brazil continues to grow and we have now started to
develop the market in Rio de Janeiro. The continued weakening of the Brazilian
currency has limited the impact of this growing business on the Group's results.
New IT system
We have been reviewing our main recruitment software and systems since early
2000. Having completed a thorough review of all possible solutions, we have
selected a new system which will be implemented globally throughout 2003 and
2004. The cost of the software, hardware, data conversion and training of all
our staff will require an investment of approximately £6m, of which £2.5m will
be capital and £3.5m expensed over the two-year period. The implementation of
the new system is a further demonstration of our long-term approach which, while
impacting short-term profitability, will ultimately improve consultant
productivity, our services to clients and candidates, as well as providing the
platform to support the growth of our business.
Outlook and strategy
I make no apology for virtually repeating what I said in my review last year. I
believe it is one of the Group's greatest strengths that we pursue a consistent
approach to managing the business. Our overall strategy remains unchanged. We
intend to stay focused on our core competency of specialist recruitment and to
grow the Group organically by the expansion of our existing businesses in their
local markets, introducing new disciplines in existing geographic markets and by
entering new geographic markets.
The main resources we require to achieve our objectives are our people. This is
why we invest heavily in their development and training at all levels. We are
committed to maintaining a level of resource that will enable us to maintain our
market presence and provide the high standards of service expected by both
clients and candidates. Whilst affecting profitability in the short-term, this
will ensure that we have the resources to continue the organic development and
growth of the Group.
The short-term outlook suggests that 2003 will be another challenging year and
rigorous cost control remains imperative.
We are determined however, not to enhance short-term profitability at the
expense of the Group's long-term prosperity. We remain focused on our core
competency of specialist recruitment and are convinced that when conditions
improve there are numerous opportunities to profitably expand our business.
Terry Benson
Chief Executive
26 February 2003
Finance Director's Review
Profit and loss account
Turnover
Turnover for the year was 16.6% lower at £383.5m (2001: £459.5m). In the second
half of 2002, turnover was 6.2% lower than in the first half reflecting a
weakening of economic conditions in the majority of markets in which the Group
operates.
Turnover from temporary placements decreased by 6.7% to £242.2m (2001: £259.6m)
and represented 63.2% (2001: 57.1%) of Group turnover. This increasing
proportion supports the widely held view that activity in temporary placements
is less affected than permanent placements in an economic slowdown.
Gross profit (revenue)
Revenue for the year decreased by 21.4% to £192.6m (2001: £245.1m) representing
an overall gross margin of 50.2% (2001: 53.3%). The percentage reduction in
revenue is greater than the reduction in turnover because of the higher
proportion of temporary placements in 2002. Revenue from temporary placements
was £59.7m (2001: £62.8m) and represented 31.0% (2001: 25.6%) of Group revenue.
The gross margin achieved on temporary placements increased marginally to 24.7%
(2001: 24.2%).
The Group's quarterly revenue peaked in the first quarter of 2001 at £69.6m and
has then declined sequentially to £49.5m in the first quarter of 2002. After
three relatively stable quarters of around £50m from the fourth quarter of 2001
to the second quarter of 2002, revenue declined into quarters three (£47.8m) and
four (£43.9m) of 2002.
Operating profit
Administrative expenses in the year were £160.5m (2001: £181.1m before
exceptional items). One of the main factors in the reduced expense is the lower
profit related bonuses payable to staff. Administrative expenses in the first
half of 2002 were £83.0m, reducing to £77.5m in the second half. This reduction
in the second half is primarily due to fewer numbers of staff.
The Group's largest category of expenditure is the remuneration of our
consultants and support staff. Headcount of the Group was 2,657 at 1 January
2002 and reduced to 2,440 at 30 June. The Group's headcount remained relatively
stable during the second half of the year and at 31 December 2002 we employed
2,390 consultants and support staff.
As a result of the revenue decline and the Group's high operational gearing,
operating profit was £32.1m (2001: £64.0m before exceptional items). There were
no exceptional items in 2002.
Net interest
The net interest receivable in the year was £0.5m (2001: £4.1m payable). During
the year £0.8m of interest was earned on surplus cash balances which were
invested in the short-term money market. Interest paid during the year includes
interest on loan notes which were repaid in full at the end of December 2002.
Taxation
Tax on profits before goodwill amortisation was £11.4m (2001: £20.5m before
exceptional items), representing an effective tax rate of 35.0% (2001: 34.1%
before exceptional items). The rate is higher than the UK corporation tax rate
of 30% as a result of non-deductible business expenses, profits arising in
higher tax rate jurisdictions, and losses which are unable to be offset against
profits in the current year and against which no deferred tax asset has been
recognised.
The effective rate increased in 2002 as a result of disallowable expenditure
being a greater proportion of taxable profits and higher unrelieved losses.
Earnings per share and dividends
Basic earnings per share were 5.8p (2001: 11.8p) and adjusted earnings per share
before exceptional items were 5.8p (2001: 10.6p). The weighted average number of
shares for the year was 366,355,000 (2001: 370,714,000). The 2002 average number
of shares was lower than 2001 due to the full year effect of shares held in the
employee benefit trust and the impact of the shares repurchased and cancelled
during the second half of 2002.
A maintained final dividend of 2.3p (2001: 2.3p) per ordinary share has been
proposed by the Directors which, together with the interim dividend of 1.1p
(2001: 0.275p) per ordinary share, makes a total dividend for the year of 3.4p
(2001: 2.575p) per ordinary share. The final dividend, which amounts to £8.2m,
will be paid on 6 June 2003 to those shareholders on the register at 9 May 2003.
Balance sheet
The Group had net assets of £58.9m at 31 December 2002 (2001: £62.4m) of which
£21.4m (2001: £14.3m) is represented by net cash. With retained earnings of
£8.9m for the year, the reduction in net assets is solely a consequence of the
share repurchase programme. During the year we spent £13.7m buying back 11.3m
shares at an average cost of 121p per share.
Capital expenditure is fundamentally driven by the Group's headcount. As
headcount reduced during 2002 the amount of capital expenditure on tangible
fixed assets net of disposal proceeds was a modest £2.5m (2001: £11.2m). Capital
expenditure in 2003 will increase as a result of the fit out costs of the new
building in London and the implementation of the new IT system.
Trade debtors have reduced to £53.2m at 31 December 2002 (2001: £65.7m)
reflecting a small improvement in Group debtor days to 51 days (2001: 52 days)
and the lower business activity at the end of 2002 when compared to the end of
2001. Within creditors the amount of accruals and deferred income has reduced to
£21.4m at 31 December 2002 (2001: £24.7m) primarily because of lower bonus
accruals following the fall in profitability.
Cash flow
At the start of the year the Group had net cash of £14.3m.
During the year the Group generated net cash from operating activities of £46.7m
(2001: £75.9m) being £40.5m (2001: £65.9m) of EBITDA and a reduction in working
capital requirements of £6.2m (2001: £10.0m).
The principal payments have been:
• The purchase of 11.3m Michael Page International shares for cancellation at a
cost of £13.7m;
• £2.5m (2001: £11.2m) of capital expenditure, net of disposal proceeds, on
property, infrastructure, information systems and motor vehicles for staff;
• Taxes on profits of £11.5m (2001: £18.1m);
• Dividends of £12.5m (2001: £1.0m).
At 31 December 2002 the Group had net cash balances of £21.4m.
Treasury management and currency risk
It is the Directors' intention to finance the activities and development of the
Group principally from retained earnings and to operate the Group's business
while maintaining the net debt/cash position within a relatively narrow band.
Cash generated in excess of these requirements will be used to buy back the
Company's shares for which renewal of the existing authority is being sought at
the forthcoming Annual General Meeting.
Cash surpluses are invested in short-term deposits with any working capital
requirements being provided by local overdraft facilities. In addition the Group
has a committed £40m facility, which expires on 1 March 2004.
The main functional currencies of the Group are Sterling, Euro and Australian
Dollar. The Group does not have material transactional currency exposures nor is
there a material exposure to foreign-denominated monetary assets and
liabilities. The Group is exposed to foreign currency translation differences in
accounting for its overseas operations although our policy is not to hedge this
exposure.
Stephen Puckett
Group Finance Director
26 February 2003
Consolidated Profit and Loss Account for the year ended 31 December 2002
2002 2001
Notes £'000 £'000
Turnover
Continuing 383,470 453,794
Discontinued - 5,753
Turnover 2 383,470 459,547
Cost of sales (190,822) (214,467)
Gross profit 2 192,648 245,080
Administrative expenses (160,512) (187,061)
Operating profit
Continuing 32,136 57,915
Discontinued - 104
Operating profit 32,136 58,019
Profit on disposal of subsidiary - 8,417
Profit on ordinary activities before interest 32,136 66,436
Net interest 461 (4,110)
Profit on ordinary activities before taxation 2 32,597 62,326
Taxation on profit on ordinary activities 3 (11,443) (18,673)
Profit on ordinary activities after taxation being
profit for the financial period 21,154 43,653
Equity dividends 4 (12,263) (9,510)
Retained profit for the financial period 8,891 34,143
Basic earnings per share (pence) 5 5.8 11.8
Diluted earnings per share (pence) 5 5.8 11.8
Adjusted earnings per share (pence) 5 5.8 10.6
Consolidated Balance Sheet at 31 December 2002
Notes
2002 2001
£'000 £'000
Fixed assets
Intangible assets 1,635 1,731
Tangible assets 23,505 28,663
Investments in own shares 10,000 10,000
__________ __________
35,140 40,394
__________ __________
Current assets
Debtors 70,743 80,747
Cash at bank and in hand 9 22,040 22,104
__________ __________
92,783 102,851
Creditors: Amounts falling due within one year (63,069) (74,812)
__________ __________
Net current assets 29,714 28,039
__________ __________
Total assets less current liabilities 64,854 68,433
Provisions for liabilities and charges 6 (6,000) (6,000)
__________ __________
Net assets 2 58,854 62,433
========= =========
Capital and reserves
Called up share capital 3,637 3,750
Capital contribution reserve - 306,487
Capital redemption reserve 113 -
Profit and loss account 55,104 (247,804)
__________ __________
Equity shareholders' funds 58,854 62,433
========= =========
Statement of Total Recognised Gains and Losses for the year ended 31 December
2002
2002 2001
£'000 £'000
Profit for the financial year 21,154 43,653
Foreign currency translation differences 1,256 (1,081)
_________ _________
Total recognised gains and losses for the year 22,410 42,572
======== ========
Reconciliation of Movements in Shareholders' Funds for the year ended 31
December 2002
2002 2001
£'000 £'000
Profit for the financial year 21,154 43,653
Dividends (12,263) (9,510)
________ ________
Retained profit for the financial year 8,891 34,143
Foreign currency translation differences 1,256 (1,081)
________ ________
10,147 33,062
Capital contribution - 168,000
Purchase of own shares for cancellation (13,726) -
Opening shareholders' funds/(deficit) 62,433 (138,629)
________ ________
Closing shareholders' funds 58,854 62,433
======= =======
Consolidated Cash Flow Statement for the year ended 31 December 2002
2002 2001
Notes £'000 £'000
Net cash inflow from operating activities 7 46,657 75,869
Returns on investments and servicing of finance 467 (4,024)
Taxation (11,537) (18,073)
Purchase of own shares by Employee Benefit Trust - (10,000)
Purchases less disposals of tangible fixed assets (2,536) (11,226)
Acquisitions and disposals - 814
Equity dividends paid (12,524) (1,016)
_________ _________
Net cash inflow before financing 20,527 32,344
_________ _________
Financing
Repayment of loan notes (5,452) (915)
Capital contribution - 168,000
Purchase of own shares for cancellation (13,726) -
Repayment of amounts owed to previous parent company - (51,531)
Decrease in bank loans - (142,000)
_________ _________
Net cash outflow from financing (19,178) (26,446)
_________ _________
Increase in net cash in the year 9 1,349 5,898
======== ========
Notes to the statutory accounts
Year ended 31 December 2002
1. Basis of accounting
The preliminary results have been prepared under the historical cost convention
and in accordance with applicable United Kingdom accounting and financial
standards. The accounting policies are the same as those set out in the
financial statements of the Group for the year ended 31 December 2001.
2. Segmental analysis
Turnover Gross Profit
2002 2001 2002 2001
(a) Turnover and gross profit by geographic region £'000 £'000 £'000 £'000
United Kingdom continuing operations 203,868 243,614 99,274 122,769
discontinued operations - 5,753 - 1,919
________ ________ _______ _______
203,868 249,367 99,274 124,688
Continental Europe continuing operations 127,551 154,335 66,334 91,644
Asia Pacific Australia continuing operations 39,187 43,041 16,380 17,667
Other continuing operations 7,503 8,265 6,536 7,212
________ ________ _______ _______
46,690 51,306 22,916 24,879
Americas continuing operations 5,361 4,539 4,124 3,869
________ ________ _______ ______
383,470 459,547 192,648 245,080
======= ======= ====== ======
Turnover Gross Profit
2002 2001 2002 2001
(b) Turnover and gross profit by discipline £'000 £'000 £'000 £'000
Finance and accounting continuing operations 277,818 333,324 126,477 159,049
Marketing and sales continuing operations 54,590 67,581 38,740 51,429
Other continuing operations 51,062 52,889 27,431 32,683
discontinued operations - 5,753 - 1,919
_______ _______ _______ _______
51,062 58,642 27,431 34,602
_______ _______ _______ _______
383,470 459,547 192,648 245,080
====== ====== ====== ======
2002 2001
(c) Profit before interest, taxation and exceptional items by geographic region £'000 £'000
United Kingdom continuing operations 20,487 34,926
discontinued operations - 104
_______ _______
20,487 35,030
Continental Europe continuing operations 5,567 22,453
Asia Pacific Australia continuing operations 5,796 5,998
Other continuing operations 1,033 1,245
_______ _______
6,829 7,243
Americas continuing operations (747) (707)
________ ________
Profit before interest, taxation and exceptional items 32,136 64,019
Exceptional items - 2,417
________ ________
Profit before interest and taxation 32,136 66,436
Net interest 461 (4,110)
________ ________
Profit on ordinary activities before taxation 32,597 62,326
======= =======
2002 2001
(d) Net assets/(liabilities) by geographic region £'000 £'000
United Kingdom 40,264 30,413
Continental Europe 17,166 26,384
Asia Pacific Australia 3,825 5,305
Other 340 1,588
_______ _______
4,165 6,893
Americas (2,741) (1,257)
________ ________
58,854 62,433
======= =======
3. Taxation
The taxation charge for the year is made up as follows: 2002 2001
£'000 £'000
Taxation relating to current year
UK corporation tax at 30% (2001: 30%) 9,964 11,906
Adjustments in respect of prior periods (296) 346
Overseas corporation tax 3,516 8,734
_________ _________
13,184 20,986
Deferred taxation
Origination and reversal of timing differences (1,741) (2,313)
_______ _______
11,443 18,673
====== ======
4. Dividends
2002 2001
£'000 £'000
Interim dividend of 1.1p per ordinary share (2001: 0.275p) 4,030 1,016
Proposed final dividend of 2.3p per ordinary share (2001: 2.3p) 8,233 8,494
_______ _______
Total dividend of 3.4p per ordinary share (2001: 2.575p) 12,263 9,510
====== ======
The record date for the final dividend is 9 May 2003 and payment date is 6 June
2003.
5. Earnings per ordinary share
Earnings per share have been calculated on the following bases:
Basic and Exceptional Adjusted
diluted EPS items EPS
£'000 £'000 £'000
Year ended 31 December 2002
Profit after taxation 21,154 - 21,154
_______ _______ ______
Average shares (number '000) 366,355 - 366,355
_______ _______ ______
EPS (pence) 5.8 - 5.8
====== ====== ======
Year ended 31 December 2001
Profit after taxation 43,653 (4,217) 39,436
_______ _______ _______
Average shares (number '000) 370,714 - 370,714
_______ _______ _______
EPS (pence) 11.8 - 10.6
====== ====== ======
6. Provisions for liabilities and charges
2002 2001
£'000 £'000
National Insurance and social security liabilities on Restricted Share Scheme 6,000 6,000
===== =====
7. Reconciliation of operating profit to net cash inflow from operating
activities
2002 2001
£'000 £'000
Operating profit 32,136 58,019
Depreciation and amortisation charges 8,067 7,670
Loss on sale of fixed assets 262 159
Decrease in debtors 10,349 17,289
Decrease in creditors (4,157) (7,268)
________ ________
Net cash inflow from operating activities 46,657 75,869
======= =======
8. Reconciliation of net cash flow to movement in net cash
2002 2001
£'000 £'000
Increase in cash in the year 1,349 5,898
Decrease in debt financing 5,452 212,894
Foreign exchange movements 224 (468)
________ ________
Movements in net cash in year 7,025 218,324
Opening net cash / (debt) 14,347 (203,977)
________ ________
Closing net cash 21,372 14,347
======= =======
9. Analysis of net cash
At 31 Cash Foreign At 31
December flow exchange December
2001 movements 2002
£'000 £'000 £'000 £'000
Cash at bank and in hand 22,104 (356) 292 22,040
Bank overdrafts (2,305) 1,705 (68) (668)
________ ________ ________ ________
19,799 1,349 224 21,372
Loan notes due within one year (5,452) 5,452 - -
________ ________ ________ ________
Total net cash 14,347 6,801 224 21,372
======= ======= ======= =======
10. Preliminary Announcement
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 2001 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. The Group accounts for the year ended 31
December 2002 will be finalised on the basis of the financial information
presented by the Directors in the preliminary announcement.
11. Issue of Annual Report and Accounts
The 2002 Annual Report and Accounts will be posted to shareholders by
12 April 2003. Copies may be obtained after this date from the Company
Secretary, 39-41 Parker Street, London WC2B 5LN. Telephone No. 020 7831 2000.
12. Annual General Meeting
The 2002 Annual General Meeting of Michael Page International plc will
be held at 39-41 Parker Street, London, WC2B 5LN on 22 May 2003 at 12.00 noon.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 31st May 2024
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