Highlights
Solid Group results in the context of more fragile and fast-changing conditions in
several key markets
Resilient profit performance due to our selective investment approach and strong
cost control
UK returned to profit through successful delivery of significant cost reduction
programme
Strong performance in Continental Europe & Rest of World, net fees increased 14%(1);
markets mixed
- Germany up 19%(1), Canada up 36%(1) Russia up 37%(1); but 7 countries saw net
fees decrease
Asia Pacific net fees decreased 11%(1); markets overall more challenging
- Australia down 13%(1) including a step-down in Resources & Mining activity in Q2
- Asia down 6%(1) with markets tough but broadly stable
UK & Ireland net fees decreased 6%(1); markets remained challenging but sequentially
stable overall in H1
- Private sector net fees down 12%(1); Public sector up 15%(1) due to increased
perm job churn
Consultant headcount down 3% year-on-year, up 1% in the last six months
Solid cash performance, with 82% conversion of operating profit into operating cash flow(3)
12% decrease in EPS(4) reflecting the Group's higher net finance charge and effective
tax rate
Commenting on these results Alistair Cox, Chief Executive, said:
"I am pleased we have delivered such a resilient profit performance considering the fragile and rapidly changing environment we faced in the half. We have returned the UK business to profit, continued to invest for growth where markets are good such as in Germany or Canada, and taken rapid action to reduce costs in markets which deteriorated in the half such as Australia or France.
What sets us apart in today's more volatile market is the scale and strength of the business model we have built. Our business is well balanced across temp and perm recruiting, has market leadership positions in both structural-growth and more mature markets, and has a sectoral diversity which is unrivalled in our industry. All of this is underpinned by our unique technology systems which not only help us improve our own productivity and efficiency but also allow us to capitalise on new evolutions in the market such as social media platforms.
Looking ahead we expect overall conditions to remain fragile, but we have seen an encouraging return to work in our key temp and contractor businesses.
Several markets are likely to remain challenging, but these will sit side by side with clear opportunities for growth. To be successful in this environment,
we will continue to react quickly to the world as it changes, investing in stronger markets while reducing costs in tougher areas. Our focus is on long-term growth while driving profits along the way."
