Highlights
Strong operating profit performance underpinned by improved productivity and responsive management action
UK & Ireland market saw broad-based improvement throughout the half
- Net fee growth of 9%, or £10.1 million generating £9.4 million improvement in operating profit
- Delivery of operating leverage as a result of improved productivity and firm cost control
- Selective investment in UK headcount to drive future growth
Good 6% net fee growth in Continental Europe & Rest of World, driving operating profit growth of 24%
- Germany up 6%, France up 2%, Canada up 5% and Russia up 32%
- 13 countries delivered net fee growth of over 10%, three countries saw a decline in net fees
Asia Pacific net fees decreased 10%; Australia tough, Asia showed strong momentum through the half
- Australia down 17%, with Temp sequentially stable in the half, Perm more challenging
- Excellent growth of 23% in Asia with all five countries growing by over 10%
Consultant headcount up 2% year-on-year as we selectively invested to capitalise on clear growth opportunities
Good cash performance, with 90% conversion of operating profit into operating cash flow
Basic EPS up 19%, reflecting higher operating profit and lower effective tax rate
Commenting on the results Alistair Cox, Chief Executive, said:
"We have delivered a strong first half profit performance. We saw conditions improve in several of our key markets as the half progressed, notably in the UK and Asia, and we invested to capitalise on the clear opportunities for growth this presented. Our ability to quickly respond to changing conditions, combined with our unrivalled sector coverage, mix of contract type and market-leading positions in both mature and structural growth countries, sets us apart in today's market.
In the UK & Ireland, the return to meaningful fee growth and our focus on driving productivity improvements, combined with the cost actions we completed in 2012, are delivering clear benefits as we converted 93% of incremental net fees into operating profit. Elsewhere, we have invested to drive growth in markets with clear momentum such as Asia, and we have continued to act quickly to reduce costs in those parts of the Group which remain challenging, such as Australia and Brazil, to best defend our financial performance.
Looking ahead we exit the first half with clear momentum in several key markets, and while some areas are likely to remain challenging, there are many opportunities for growth. We will continue to react quickly to changing market conditions, investing in stronger markets while reducing costs where market conditions or outlook are more uncertain. Our focus remains on ensuring the Group is positioned to deliver on our long-term objectives to materially grow and diversify the business whilst driving our profits along the way."
