FINANCIALS: Robust the word at PageGroup as North America boosts profit
13 August 2013
For the third consecutive quarter, PageGroup chief executive officer Steve Ingham (pictured) described his firm’s performance in the first half of 2013 as “robust” – also hailing “excellent progress” made on key objectives for the company, and the turnaround of its “high potential” US business.
Tue, 13 Aug 2013For the third consecutive quarter, PageGroup chief executive officer Steve Ingham (pictured) described his firm’s performance in the first half of 2013 as “robust” – also hailing “excellent progress” made on key objectives for the company, and the turnaround of its “high potential” US business.
The term ‘robust’ also appeared in his comments on the results statements for Q2 of this year, as well as Q1, and the full year 2012 – although the results for the six months to 30 June, released today and available via the recruiter's website, show more positive signs for the group.
Revenue increased by the smallest marginal possible (0.1%) to £503.2m, although when adjusted for currency fluctuation this represents a 0.9% decline.
Gross profit (GP) dropped a currency-adjusted 5.2% to £261.9m, while operating profit rose by £3.9m to £32.1m. The firm made administrative savings of £8m in the period.
Ingham says the firm has “made excellent progress on our key strategic objectives”, namely:
The company’s Americas geography is its smallest, representing 15% of revenues, but with revenue having increased 11.2%, it is gaining increased prominence. While the North America business saw GP up 23%, Latin America saw that figure drop by 2%.
That "turnaround" in the US comes after "management changes" in 2012, as described in the 2012 full year results, and tough conditions in recent years in that market due to the downturn in the banking sector.
Meanwhile, the EMEA region, the group’s largest, declined in both revenue and GP terms, while the UK was flat and Asia-Pacific saw a slight uplift in revenue, although GP was down.
The term ‘robust’ also appeared in his comments on the results statements for Q2 of this year, as well as Q1, and the full year 2012 – although the results for the six months to 30 June, released today and available via the recruiter's website, show more positive signs for the group.
Revenue increased by the smallest marginal possible (0.1%) to £503.2m, although when adjusted for currency fluctuation this represents a 0.9% decline.
Gross profit (GP) dropped a currency-adjusted 5.2% to £261.9m, while operating profit rose by £3.9m to £32.1m. The firm made administrative savings of £8m in the period.
Ingham says the firm has “made excellent progress on our key strategic objectives”, namely:
- “Continued investment in each of our five high potential markets,” which are China, Germany, Latin America, South-East Asia and the US
- “Increased focus on consistency and efficiency in our operational support teams”
- “The turnaround of our US business, where we are up 27% [currency-adjusted] in GP this year”
- Further discipline diversification
The company’s Americas geography is its smallest, representing 15% of revenues, but with revenue having increased 11.2%, it is gaining increased prominence. While the North America business saw GP up 23%, Latin America saw that figure drop by 2%.
That "turnaround" in the US comes after "management changes" in 2012, as described in the 2012 full year results, and tough conditions in recent years in that market due to the downturn in the banking sector.
Meanwhile, the EMEA region, the group’s largest, declined in both revenue and GP terms, while the UK was flat and Asia-Pacific saw a slight uplift in revenue, although GP was down.
