ANNUAL REPORT
& A C C O U N T S 2 0 2 1
Annual Report and Accounts 2021 Annual Report and Accounts 2021
Contents
STRATEGIC REPORT
Chairman’s Introduction ............................................................................................................................1
Overview ....................................................................................................................................................3
Business Model .........................................................................................................................................5
Strategic Review .....................................................................................................................................13
KPIs ..........................................................................................................................................................21
Q&A with Steve Ingham, CEO .................................................................................................................25
Culture & Engagement Framework .........................................................................................................27
Regional Perspectives ............................................................................................................................49
Risk Management ....................................................................................................................................51
Principal Risks and Uncertainties ...........................................................................................................53
Stakeholder Engagement ........................................................................................................................61
Review of the Year ...................................................................................................................................66
CORPORATE GOVERNANCE
Chairman’s Introduction to Corporate Governance...............................................................................71
Our Board of Directors ............................................................................................................................73
The Executive Board ...............................................................................................................................77
Corporate Governance Report ...............................................................................................................79
Nomination Committee Report ...............................................................................................................85
Audit Committee Report .........................................................................................................................88
Directors’ Remuneration Report – Annual Statement ...........................................................................93
Directors’ Remuneration Report .............................................................................................................95
Directors’ Report ...................................................................................................................................117
Directors’ Statements of Responsibility ...............................................................................................120
FINANCIAL STATEMENTS
Independent Auditor’s Report ..............................................................................................................121
Consolidated Income Statement ..........................................................................................................127
Consolidated Statement of Comprehensive Income ...........................................................................127
Consolidated and Parent Company Balance Sheets .........................................................................128
Consolidated Statement of Changes in Equity ....................................................................................129
Statement of Changes in Equity – Parent Company ...........................................................................130
Consolidated and Parent Company Cash Flow Statements ..............................................................131
Notes to the Financial Statements .......................................................................................................131
ADDITIONAL INFORMATION
Shareholder information and advisers .................................................................................................160
We are one
of the world’s
most respected
specialist
recruitment
consultancies. We
deliver recruitment
services to clients
through a
network of 138
offices across
37 countries.
Our Vision is to
increase the scale
and diversification
of PageGroup by
organically growing
existing and new
teams, offices,
disciplines and
markets.
Highlights
Gross
Profit
£877.7m
+49.1%*
2020: £610.2m
Operating
Profit
£168.5m
>100.0%*
2020: £17.0m
Basic Earnings
Per Share
Conversion
rate**
37.2p
>100.0%*
2020: -1.8p
Ordinary and
Special Dividend
41.71p
2020: -
19.2%
2020: 2.8%
% Non-UK
Gross Profit
85.4%
2020: 86.7%
*in constant currency at prior year rates **Operating Profit as a percentage of Gross Profit
Our geographic markets
Large, High Potential
Typically under-developed markets, but where we have a successful track record and confidence in our
ability to scale our operations substantially.
Countries: Germany, Greater China, Latin America, South East Asia, the US
Large, Proven
These are large markets where we are already proven with a strong track record and a significant presence.
Countries: UK, France, Australia, the Netherlands, Italy, Spain
Small and Medium, High Margin
Markets which are, or could be, significant profit contributors with attractive conversion margins, but each
are unlikely (or not yet proven) to be able to grow to more than 300 fee earners.
Countries: Japan, India, Middle East, Africa, Canada, Turkey, other European countries
Our capabilities
Operating
Profit
People
Data
People are at the heart of what
we do and our culture puts
our employees first. We have a
strong reputation as an inclusive
employer as well as an ethical
and professional recruiter. We
have a firm commitment to our
diversity and inclusion initiatives
and have made significant
progress in this area over the
past few years.
We understand how data
empowers our people to make
better and faster decisions. This
in turn enables us to respond to
market demands effectively and
efficiently. PageInsights provides
our teams with a deeper
understanding of client and
candidate needs, at the right
time. We have also coupled our
data from Customer Connect
with external datasets to drive
market insights.
Technology
Over the past few years, we
have invested significantly in
technology and cloud-based
solutions. This includes the
roll out of our global operating
platform, Customer Connect.
We have a strong culture of
continuous improvement, and
are driven to implement market
leading technology solutions in
our business.
37 Countries across
the world
Headcount
7,838
Offices
138
Our brands
1
Chairman’s Introduction
will continue to invest in these areas of
strategic priority in 2022, alongside those
businesses where we see potential for
strong growth.
Dividends
Given the challenging conditions and
trading results experienced in 2020,
we made the decision to suspend our
dividend policy. With the strong return to
growth in 2021, and high levels of surplus
cash, we paid an interim dividend of
£15.0m and a special dividend of £85.2m
in October of this year.
We generated cash from operations of
£149.2m in 2021 and ended the year with
cash balances of £154.0m. Given this
cash position, the level of distributable
reserves and our results for the year,
we propose a final dividend of 10.3p.
When combined with the interim dividend
of 4.7p paid in October, this is a total
ordinary dividend of 15.0p, an increase
of 9.6% on the 2019 proposed dividend.
This ordinary dividend of 15.0p is covered
2.5 times by earnings, with a yield of
2.4%. If the special dividend is included,
using the year end share price of 633.5p,
this yield increases to 6.6%.
Dividend Per Share (p)
50
40
30
20
25.23
12.73
25.83
12.73
10
12.5
13.1
Special dividend
41.71
26.71
17.03
12.73
15.0
0
2017
2018
2019
2020
2021
4.3
0
Five-year Ordinary Dividend CAGR +4.6%
Board
We are committed to ensuring the Board
has the necessary skills and expertise
to work alongside the Executive team
in delivering the Group’s strategy. One
of my key objectives as Chairman is to
oversee a Board with a diverse range
of experience and perspectives. I have
therefore been highly focused on Board
composition since I became Chairman of
the Board in December 2015.
As a Group, we support the Hampton-
Alexander review and the requirement
to disclose the gender balance of senior
2021 Performance
strong liquidity position.
We entered 2021 with a high degree
of global macro-economic uncertainty
due to the COVID-19 pandemic. The
roll out of vaccine programmes across
many countries globally has helped the
recovery, though new variants and the
impact of lockdowns and other restrictions
vary significantly by region. The safety of
our employees, candidates and clients
remains our key priority. The business
has adapted well to remote and hybrid
working, leveraging the investments in
new technologies made by the Group
over the past few years.
Despite the challenging conditions,
I am pleased to report that the Group
delivered a record performance in the
year ended 31 December 2021. The
Group has recovered well following the
impact of COVID-19 on 2020, with gross
profit growing 49.1% and operating profit
growing more than 100% versus the
prior year. Against a 2019 comparative,
Group gross profit was up 7.0% in
constant currencies to £877.7m, with
operating profit up 18.9% to £168.5m.
Throughout the Annual Report, we
will primarily provide comparisons in
constant currencies against 2019, our
previous record year, to ensure the most
appropriate representation of the Group’s
performance.
Our highly experienced Executive
leadership team reacted quickly to the
emergence of the pandemic in 2020 and
our strategic priority was to protect our
platform. This helped us to recover faster
than our competitors in 2021. We repaid
£3.4m of furlough income received from
the UK government in Q1 of this year, and
reinstated our dividend policy due to the
strength of our trading results and our
We have continued to invest in our Large,
High Potential markets, as well as our new
High Potential disciplines of Technology,
and Healthcare & Life Sciences, which
have proved the most resilient during the
pandemic. Our Page Outsourcing brand
has been another key focus for investment
and gives the Group access to a new area
of the market. We have also added more
than 1,000 experienced fee earners to
the Group since Q2 2020, and this has
enabled us to capitalise on the significant
opportunities for the recruitment sector
coming out of the pandemic. We continue
to invest in technology, with our Customer
Connect operating system now live in all
markets except France and Latin America,
which are scheduled for completion by the
end of Q2 2022.
All regions recovered well in 2021, with
3 of our 4 regions delivering a record year.
Gross profit in EMEA, our largest region,
was up 6% against 2019. Growth was
particularly strong in Germany, up 31%,
driven primarily by the performance of
our Technology-focused Interim business.
Asia Pacific grew 15% on 2019, with
both Mainland China and South-East Asia
delivering a record year. The Americas
was badly impacted by the pandemic
but was our fastest-growing region
in 2021, with North America growing
13% and Latin America growing 18%.
The UK declined 5% versus 2019, with
Michael Page returning to growth in Q3
as restrictions eased. Page Personnel
has been slower to recover, though
encouragingly returned to growth in
Q4. Our Large, High Potential markets
represented 38% of the Group for the
year, and grew 21% against 2019. These
markets represented more than 40%
in Q3, achieving our Vision target. We
Annual Report and Accounts 2021 2
management, with 38% female at
the end of 2021. We have already
succeeded the target for FTSE
350 Boards to have 33% female
representation by 2020. On our
Executive Board, female representation
stands at 10% as at 1 January 2022
and at the Director level, female
representation is 38%. We have also
signed up to the UN Global Compact
Network with a target of achieving
gender equality in senior management
roles by 2030.
We continue to invest in our various
programmes to accelerate the
promotion of women to leadership
positions, including our Women@Page
initiative. In 2022 we are launching our
Global Female Career Sponsorship
Programme, to further support our
commitment to accelerating the
progression of females into senior
management.
On 1 September 2021, Simon Boddie
retired as a Non-Executive Director and
Chair of the Audit Committee. I would
like to thank Simon for his significant
contributions over his 9 years in this
role. On 1 January 2021, Ben Stevens
joined the Board as a Non-Executive
Director, bringing extensive experience
across different roles and sectors to
the Group. Ben Stevens joined the
Audit, Nomination and Remuneration
Committees and from 1 September,
succeeded Simon Boddie as Chair of
the Audit Committee. Full details of
the work undertaken by the Board are
set out in the Corporate Governance
Report.
As recently announced, I will be
stepping down from my role as the
Group’s Non-Executive Chairman on 30
April. The Board has appointed Angela
Seymour-Jackson as the new Chair.
Angela has served on the Board since
2017 and brings a wealth of experience
from both her senior Executive roles
and from her experience at PageGroup
as a Non-Executive Director and
Committee Chair. It has been a privilege
to serve on the Board for the past 10
years, and I am immensely proud of
PageGroup’s achievements during this
time. I leave fully confident in the future
success of the Group.
Culture, purpose and
stakeholder engagement
PageGroup’s purpose is to change lives
for people through creating opportunity
to reach potential. We are committed to
ensuring professional success for our
clients, candidates and employees and
this is underpinned by our Company
values of passion, determination,
working as a team, enjoying what we
do and making a difference.
In accordance with the requirements of
the UK Corporate Governance Code,
all members of the Board are effectively
engaging with employees. This is done
in several forums, including attendance
at employee meetings, virtual events
and regular employee surveys. These
channels focus on areas linked to our
culture and engagement framework,
including retention and promotion,
diversity and inclusion metrics and
employee wellbeing.
Our 2021 Global Employee
Engagement Survey shows the positive
progress we have made in this area.
89% of our people felt proud to work
at PageGroup and 86% valued the
Group’s commitment to diversity
and inclusion. We introduced our
Continuous Listening Strategy in 2020
and the results of our employee pulse
surveys and other assessments are
discussed by the Board during our bi-
annual culture and engagement review.
Here, the Board identifies future actions
to ensure our culture is aligned globally
and continuous improvement is made
in this area.
Earlier this year we established the
Group’s Shadow Executive Board.
The Shadow Board works directly
with the Executive Board to scrutinise
their agenda and offer a different
viewpoint from a more diverse group of
people, with the aim of influencing the
strategic direction of the business. The
Shadow Board covers different regions,
ethnicities, ages, gender, LGBTQ+ and
tenure within PageGroup and will rotate
every 12 months.
Building strong customer relationships
is vital to ensure our long-term success.
Our suite of technology innovations
developed over the past few years
meant we were well placed to handle
the challenges of remote working
through the pandemic and to continue
providing excellent customer service.
The move to having one global
operating platform in Customer
Connect, puts us in a strong position
to adopt future innovative solutions
and to address ever-evolving client and
candidate needs.
Sustainability
PageGroup has made significant
progress on its sustainability objectives
in 2021. We joined the UN Global
Compact and released our inaugural
Sustainability Report, focusing on all
three elements of ESG (Environment,
Social and Governance). We reflected
on our achievements to date in this
area, as well as developing a ten-year
sustainability vision with ambitious
targets.
The Group offset its carbon impact
again in 2021, and going forward we
have the ambition of becoming carbon
positive by 2026. We plan to achieve
this by continuing to transition from
traditional electricity to renewable
sources and reducing business travel.
The Group also aims to establish a
meaningful sustainability recruitment
business by 2026. We are targeting
to positively impact over 1 million lives
in the ten years to 2030, both via
placement in employment opportunities
and through access to our social
impact programmes.
Further details of our progress on
sustainability, greenhouse gas reporting
and climate-related financial disclosures
(TCFD) are included in the Sustainability
section.
Looking ahead
As we enter 2022, there is increased
optimism in the post-pandemic
recovery across the globe. However,
the emergence of new variants provide
a degree of uncertainty, against the
backdrop of significant progress made
with vaccination programmes through
2021. We are benefitting from improved
trading conditions, candidate shortages
driving wage inflation, and video
interviewing reducing the time to hire.
Alongside the strategic decisions made
by the Group during the pandemic,
we are well positioned to capitalise on
future opportunities.
We are committed to investing in our
Large, High Potential markets and
disciplines, together with other areas
where we see the greatest potential for
growth. We continue to work towards
our Vision of £1bn of gross profit,
£200-£250m of operating profit and a
customer rating of 90%+.
We have engaged and experienced
employees and we will continue to
provide them with a flexible working
environment, whilst focusing on
supporting them to reach their potential.
The Group has made strong progress
to date with technology and our use
of data, and we will further develop
innovative, industry leading technology
and tools to continue to provide the
best possible service to our customers.
Our success in delivering a record year
in 2021 is reliant upon the contributions
of our employees. On behalf of the
Board, I would like to thank all of our
people for their significant achievements
and their continued dedication this year.
David Lowden
Chairman
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 3
Overview
PAGE 5 BUSINESS MODEL
FINANCIAL
STRATEGIC
PEOPLE
OPERATIONAL
Highly profitable
Maintain a strong
balance sheet
Highly cash generative
Sustainable organic growth
Diversification to mitigate
cyclicality by geography, brand
and discipline
Focus on operational efficiency
Team-based service
delivery
Talent and skills
development/retention
Strong brands
Effective use of technology
PAGE 13 STRATEGY
FINANCIAL
STRATEGIC
PEOPLE
OPERATIONAL
Long-term investment into core
geographic markets
• Large, High Potential
• Large, Proven
• Small and Medium, High Margin
High Potential Disciplines:
• Technology • HLS
PAGE 51 RISKS
FINANCIAL
To be the leading specialist
recruiter in each of the markets
in which we operate
Career development
structure
Training
Global mobility
Assurance of a quality service
Effective recruitment
process
STRATEGIC
PEOPLE
OPERATIONAL
Macro-economic exposure
Shift in business model
People development
Foreign exchange translation risk
Delivery of operational
efficiencies
Attraction and retention
Technology; systems
transformation and change;
data security; brand reputation;
financial management and
control; fiscal and legal
compliance
PAGE 21 KPIs
FINANCIAL
STRATEGIC
PEOPLE
OPERATIONAL
Gross profit growth
Gross profit per fee earner
Gross profit diversification
Fee earner headcount growth
Perm:Temp ratio
Cash
Earnings per share
Fee earner:operational support
staff ratio
Conversion rate
Employee satisfaction
survey
Measurement performed
at a granular level
Management experience
D&I review ratings
PAGE 93 REMUNERATION
FINANCIAL
STRATEGIC
PEOPLE
OPERATIONAL
EPS growth: three year cumulative
Strategic targets
PBT performance
Systems and innovation
Comparator gross profit growth
Leadership and people
development
Retention/succession
Cost and financial management
Risk management and internal
controls
IT strategic development
PAGE 18 DIVIDEND POLICY
FINANCIAL
STRATEGIC
PEOPLE
OPERATIONAL
Maintain a strong balance sheet
Maintain core ordinary dividend
Return surplus cash to
shareholders by special
dividends and/or share
buybacks
Ensure dividends are paid
at sustainable levels such
that investment in the
business and its people is
maintained
First use of cash is to satisfy
operational and investment
needs, as well as to hedge
liabilities under the Group’s
share plans
Annual Report and Accounts 2021 4
A message from Steve
Welcome to our 2021 Strategic Report, where I will outline our Business Model and Strategic
Framework. I will then cover our Strategic Review, which highlights some of the key strategic
initiatives and investments that have supported our success this year, as presented at our Investor
Afternoon in December 2021. Following this, I will outline our updated Vision and then move on to
how we see current market dynamics, together with our capital allocation policy.
We continue to measure our performance through both our financial and non-financial KPIs, with
associated risks. These risks are directly linked to the four key elements (financial, strategic, people
and operational) of the performance criteria in our current executive share plans.
Steve Ingham
CEO PageGroup
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 5
Business Model
OUR MODEL AT WORK
OUR PEOPLE
An experienced senior
management team and high-quality
consultants. Expertise in premium
candidate sourcing and advocating
for client and candidate.
OUR CULTURE
Diverse and inclusive culture with
ingrained values of how to do
business ethically. We have created
an environment where developing
our people and achieving results for
the customer is paramount.
OUR RELATIONSHIPS
We work closely with our clients
and candidates. Our customer-
centric ethos upholds our reputation,
maintains our competitive edge and
enables our business to thrive.
OUR BRAND AND SCALE
Global reach, with deep local
knowledge. Specialist industry and
market knowledge. High levels of
operational efficiency.
TECHNOLOGY AND
INNOVATION
Focused on how best to acquire,
engage and nurture customers
to build long-term relationships.
The use of technology allows us to
leverage growth and improve our
conversion rate.
FINANCIAL CAPABILITY
Our business is supported by a
strong balance sheet and significant
cash flow generation.
OUR PURPOSE
PAGEGROUP
CHANGES LIVES
Our Value
Proposition Model
CLIENTS
• Sector expertise
• Appropriate candidate shortlist
• Professional high-quality service
CONSULTANTS
• Team-based structure and compensation
• Access to jobs across entire Group
• Consistent process
CANDIDATES
• Professional high-quality service
• Market understanding and client profiling
• Career advice
UNDERPINNED BY OUR VALUES
WE MAKE A DIFFERENCE
WE ENJOY WHAT WE DO WE WORK AS A TEAM
Annual Report and Accounts 2021 OUR MODEL AT WORK
6
Delivering
our strategic
objectives
LEADS TO...
• Repeat business
• Greater exclusivity
• Future candidates
LEADS TO...
• Rapid career promotion
• Career opportunities
• Reward and recognition
LEADS TO...
• Career-long relationships
• Peer recommendations
• Future clients
Sustainable growth
for the benefit of
our stakeholders
ORGANIC,
HIGH-MARGIN,
DIVERSIFIED
GROWTH:
With a core focus
on organic growth,
our broad-based
capabilities enable us
to capitalise on market
opportunities around
the globe, avoiding
over-reliance on one
geography or discipline.
SCALABLE
& FLEXIBLE
CAPACITY:
Our brand and scale
enable us to build
an unrivalled skillset,
together with the ability
to respond quickly
to changing market
conditions.
TALENT
AND SKILLS
DEVELOPMENT:
The recruitment,
retention and
development of talent
is fundamental to
driving our meritocratic
growth model.
Our strategic framework is outlined
on page 7.
EMPLOYEES
Supportive, inclusive
culture where they
experience real
opportunities for
development and a long
and rewarding career.
INVESTORS
Look for investment
growth and seek
confidence their
investment is under
sound stewardship.
CUSTOMERS
Rely on us to provide
world-class specialist
recruitment services
and solutions to help
drive their business and
careers forward.
COMMUNITIES
& GOVERNMENT
Need businesses that
have a positive impact.
SUPPLIERS
Seek strong and
enduring partnerships
based on fair terms.
Stakeholder engagement is outlined
on page 61.
UNDERPINNED BY OUR VALUES
WE WORK AS A TEAM
WE VALUE DETERMINATION
WE ARE PASSIONATE
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 7
Business Model
STRATEGIC FRAMEWORK
STRATEGIC FRAMEWORK
PageGroup is focused on delivering against three key objectives to achieve its Strategic Vision and deliver sustainable
PageGroup is focused on delivering against three key objectives to achieve its Strategic Vision and deliver sustainable
financial returns. These are to:
financial returns. These are to:
1
2
POSITION THE BUSINESS TO BE
SCALABLE EFFICIENTLY AND
HIGHLY FLEXIBLE TO REACT TO
MARKET CONDITIONS
Demonstrating the ability to respond quickly to changes in
market conditions is critical to managing the business efficiently
through economic cycles. Our team-based structure and profit
share business model has proven highly scalable on a global
basis.
The small size of our specialist teams enables us to grow gross
profit quickly with incremental fee-earner headcount. When
market conditions tighten, this headcount is reduced mostly via
natural attrition, to ensure a lower cost base in a slowdown. We
have managed this well through the pandemic and chose to
maintain our platform during 2020; this decision has enabled us
to accelerate more quickly than our competitors coming out of
the pandemic to deliver the record results achieved in 2021.
We have retained experienced staff and continue to focus on the
training and development of all our employees. We selectively
added over 1,100 experienced hires from the competition from
Q2 2020 through to the end of 2021. These decisions have
helped to drive the productivity gains achieved during the year
and put us in a strong position for 2022 and beyond.
Our global footprint requires high levels of operational efficiency
in order to achieve this strategic objective. Our focus on shared
service centres has delivered greater economies of scale and
efficiencies. It has driven consistency, increased flexibility and
improved the quality of the service provided to our operational
business. Collectively, our shared service centres allow us to be
more agile, reduce our fixed costs and remove constraints on
how fast we can react to market conditions.
LOOK FOR ORGANIC,
HIGH MARGIN AND
DIVERSIFIED GROWTH
Our business model is centred on delivering organic and
diverse growth. As recruitment is a cyclical business and
impacted by the strength of economies, diversification
is an important component of our strategy, reducing our
reliance on any individual market or business and thereby
increasing the strength of the Group.
Our strategy therefore is to expand and diversify the
business by industry sectors, professional disciplines,
geography and brands, with the objective of being the
leading specialist recruitment consultancy in each of our
chosen markets.
In 2007, prior to the global financial crisis, our Non-UK
business represented 61% of the Group and it now
represents 85%. We have invested heavily in our Large,
High Potential markets, which in 2007 had under 700
fee earners and represented 17% of Group gross profit.
We now have over 2,400 fee earners in these markets,
which today represent 38% of Group gross profit. We
have also successfully diversified away from Finance
and Accounting, with this discipline making up 54% of
total Group gross profit in 2007, compared with 32% in
2021. These two changes highlight the success of our
diversification strategy.
Our business model has proved resilient during the
COVID-19 pandemic. With less reliance on any one
individual country, brand or discipline, the business
has been better positioned to face the adverse
market conditions. Our global presence and strategic
investments made over the past two years have enabled
us to capitalise on opportunities coming out of the
pandemic in 2021.
PageGroup’s historical success across major global
economies has helped us to identify those markets likely
to produce long-term gross profit growth at attractive
conversion rates. This enables us to offer a premium
service that is valued by our clients and also attracts
the highest calibre of candidates. Our service offering
includes a broad set of disciplines, within the professional
and clerical recruitment sector, including two designated
as high potential in Technology and Healthcare & Life
Sciences. Our Page Outsourcing offering provides
opportunities in a new area of the market and has
significant growth potential.
Annual Report and Accounts 2021 8
3
NURTURE AND DEVELOP OUR PEOPLE, DRIVING OUR
MERITOCRATIC GROWTH MODEL
We recognise that our employees are key to our long-term success. The recruitment, retention and development
of talent is a key priority for the Group. We recruit from a diverse set of backgrounds and value our consultants’
experiences greatly.
We have clearly defined career pathways for consultants through to senior management and Board level. This
helps to ensure we retain the best talent and develop our people for leadership positions. We have a proven
track record of internal promotion and international career moves and the newly evolving hybrid working model
will open up greater opportunities in this area.
Our highly experienced management team have the longest tenure in the industry and are passionate in
developing the next generation of Page leaders. Many of our management team have international experience
and this has helped with global knowledge sharing and best practice. It additionally allows us to capitalise on
opportunities and react to market conditions effectively. Increasingly, we are promoting within regions and many
of the leaders in our Large, High Potential markets have had long-standing careers in those markets, combined
with valuable local expertise.
We introduced our continuous listening strategy in 2020 and the insights from these initiatives have allowed us
to build understanding and drive change and improvement. We are committed to diversity and inclusion and
have made significant progress in this area in recent years. Underpinned by our global diversity and inclusion
framework, we have a number of internal communities to ensure our employees have networks to connect,
share and learn.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 9
Business Model
OUR STRATEGY
The Group’s strategy aims to expand and diversify the business organically by professional
disciplines, brands and geographies, with the objective of being the leading specialist
recruitment consultancy in each of our chosen markets.
Annual Report and Accounts 2021 10
A FOCUS ON ORGANIC GROWTH
PageGroup’s business model has proved itself both through economic cycles and as the business has expanded into a
global enterprise. At its core is a focus on organic growth.
Global management mobility
We regularly move experienced
managers and directors into markets
where they can add the most value and
guide the business through the challenges
of a market cycle, while allowing us to
retain and motivate key senior talent.
Team profit-led compensation
A focus on team-based performance
rather than the individual promotes positive
corporate behaviour and consistent quality
of service for both clients and candidates.
Organic
Growth
Career development
structure
PageGroup offers its consultants
a well-defined and varied
career in recruitment. This
includes a clear development
structure with significant
opportunities for the most
talented.
Experienced
management pool
Experience through economic cycles and
across geographies and disciplines reduces
our learning curve, maximises scalability and
is crucial for placing resources where they will
add the most value.
Agile and responsive
Recruitment is a fast-paced and
dynamic business. Our agility gives us
the confidence to respond quickly to
opportunities and challenges as they
appear.
Productivity-led
expansion
Our operational metrics focus on
productivity, by team, discipline and
geography. This bottom-up approach
aligns expansion criteria throughout
the Group, focusing and optimising
investment on key priorities.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 11
Business Model
OUR VISION
GROSS PROFIT
OPERATING PROFIT
CUSTOMER RATING
£1bn
£250m
90% +
Our Vision remains consistent, to increase the scale and diversification of PageGroup by organically growing existing and new teams,
offices, disciplines and markets. We are focused on delivering Group gross profit of £1bn and operating profit of £250m. When we last
updated this Vision in 2018, this required total Group headcount of 10,000 at 2018 productivity levels. Our focus on operational support
has meant we have improved our fee earner to support staff ratio, from 77:23 to 78:22 at the end of 2021. The productivity increase in
2021 of 17% over 2019 was attributable to our increase in operational efficiency, roll out of our technology initiatives and the recent move
to video-interviewing reducing time to hire, as well as improvements in market conditions. As such, we have removed our Vision target
relating to needing 10,000 people to deliver the financial targets, and replaced this with the goal of achieving an average customer rating
of 90% +.
WHAT WE DO
PageGroup is a worldwide leader in specialised recruitment. We have over 40 years recruitment experience and deliver
recruitment services to clients across 37 countries through our network of 139 offices.
Einkauf & Supply Chain
Finanaz
Finanzas y Contabilidad
DISCIPLINE
EXPERTISE
PERM AND
TEMP MIX
GEOGRAPHIC
REACH
We’ve developed PageGroup’s reputation
as a global recruitment leader through
our focus on specialist areas of the
market, replicated across our international
network. Within our four broad discipline
categories, we operate across 14 specialist
discipline teams. We then specialise further
within these (e.g. digital marketing within
marketing) to ensure we provide expert
recruitment services to our clients.
PageGroup is the international market
leader for permanent recruitment
in the majority of the countries in
which we operate. We also have a
substantial and growing temporary
recruitment business in markets
where temporary placements for
professionally qualified candidates are
culturally accepted.
Our substantial and well-balanced
business reaches across all
regions, including Latin America
and Asia. Our global model allows
us to source candidates from
domestic and international markets
and provide a comprehensive
service to both local and
multinational clients.
Annual Report and Accounts 2021 12
OUR BRANDS
PAGE EXECUTIVE
With typical margins above those of Michael Page and Page Personnel, our executive search division of PageGroup provides a
range of search, selection and talent management solutions for organisations on a permanent and interim basis. Recognised for our
powerful in-house research function, speed and flexibility of response, and assignment completion rates, organisations worldwide
use Page Executive to secure their senior talent. The roles on which we focus typically sit at the sub-board and Board levels.
MICHAEL PAGE
The original PageGroup brand is normally established as the first business in each new country that we enter. Michael Page is
comprised of 25 specialisms, each providing a service to a specialist area of the market, recruiting permanent, temporary, contract
and interim opportunities, typically at qualified professional and management level. The businesses we work with range from SMEs
to global blue-chip organisations.
PAGE PERSONNEL
Page Personnel offers specialist recruitment services to clients requiring permanent employees, temporary or contract staff. Mirroring
the geographical and sector coverage of Michael Page, it provides specialist services to organisations requiring talent at professional
clerical and support levels.
PAGE OUTSOURCING
Our newest brand, Page Outsourcing, harnesses the power of the other PageGroup brands. Our flexible recruitment outsourcing
solution allows our clients to focus on their core business. The Page Outsourcing offering includes both Recruitment Process
Outsourcing (RPO) and Managed Service Provision (MSP), together with a number of Outsourcing Consultancy solutions. Page
Outsourcing represents an opportunity for the Group to accelerate growth across all segments of the market.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 13
Strategic Review
OUR COMPETITIVE ADVANTAGE
Our true competitive advantage is the combination of these four factors and the balance we have achieved in
the business for over 45 years. We generate funds through fees earned for placing candidates in permanent, temporary
and contract roles.
SCALE
Our scale enables PageGroup to commit to markets through economic cycles, which, combined with our strong financial standing, has
given clients the confidence to build lasting relationships with us. Temporary staff also derive comfort from our financial strength that
their services will be paid for.
The breadth of our client base globally, even in our new markets, gives us the ability to offer diverse expertise across a wide range of
complementary specialisms and geographies, enhancing our offering to the market and the candidate pools we can access.
Our scale has led to us having an unrivalled skillset with high levels of experience, which is available to clients of any size and across all
sectors in which we operate.
BRAND
We deliver specialised sector
experience operated via four
key brands:
Page Executive, Michael
Page, Page Personnel and
Page Outsourcing, supported
by supplementary brands
throughout our international
locations.
The first class reputation of
our brands gives high-quality
candidates assurance
to place key decisions on
their future in our hands. Our
superior level of expertise
and the knowledge of our
consultants inspires trust and
assurance of service quality, for
both clients and candidates,
enabling our brands to
outperform other recruitment
businesses.
Annual Report and Accounts 2021 14
CULTURE
PageGroup’s culture is unique and sets us apart from the competition. Our global culture delivers a consistent approach, both
internally and externally, whilst remaining accepting of each of our market’s local characteristics.
A diverse team brings different perspectives and insight to our business, and our promotion of diversity and inclusion ensures
we add value to the markets we recruit into on behalf of our clients. We work closely with our clients to source and recruit from
a diverse talent pool to provide them with the best candidate.
We have ingrained values of how we do business ethically and make long-term decisions. Our purpose and values that are the
key to our success are set out on page 27.
INNOVATION
The digital revolution has transformed the recruitment market.
The impact of technology on behaviours and expectations of both
clients and candidates continues to grow at pace. Our innovation
approach is focused on how best to acquire, engage and nurture
customers to build long-term relationships. We have a dedicated
innovation team that ensures we have a good understanding of
the different recruitment trends and forms partnerships with the
most advanced technology providers who can help us create an
innovative experience for our customers.
Our internal Business Technology function focuses on designing,
implementing and exploiting scalable global systems. By improving
our processes and tools, we empower consultants to be more
productive. In our operational business we are utilising technologies
such as Salesforce and Thunderhead to engage with customers
throughout their journey.
The use of technology allows us to leverage growth in the business
and improve our conversion rate.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 15
Strategic Review
HOW WE CATEGORISE OUR MARKETS
Investment Approach
Investment has been focused on developing the long-term sustainability of the business and is supported by significant balance sheet
strength and cash flow generation. This market categorisation provides an investment framework for the Group. Investment comes in a
range of forms including headcount, new offices and infrastructure, marketing spend and minimum levels of market presence through
the economic cycle.
CATEGORISATION
COUNTRIES
Large,
High Potential
38%
of the Group
Large,
Proven
46%
of the Group
Small and
Medium,
High Margin
16%
of the Group
Substantial, high-potential markets for
recruitment.
Typically under-developed, but where PageGroup
has a successful track record and confidence in
its ability to scale operations successfully. Each
satisfied key criteria including:
• Positive PageGroup track record;
• Ability to adapt PageGroup culture to local
culture;
• Ability to hire and retain local consultants;
• Ability to roll-out disciplines and open offices;
• Attractive conversion rate potential; and
•
Large-scale economies.
LARGE MARKETS in which
PageGroup is already proven with
a strong track record and a
significant presence.
Have been, or could be, SIGNIFICANT
PROFIT CONTRIBUTORS for
PageGroup, but each not likely to be in
excess of 300 fee earners.
Germany
Greater China
Latin America
South East
Asia
The US
UK
France
Australia
The
Netherlands
Italy
Spain
Japan
India
Middle East
Africa
Canada
Turkey
Other European
countries
Annual Report and Accounts 2021 16
HIGH POTENTIAL DISCIPLINES
In addition to the below, during 2021 we also have classified three disciplines as large, high potential disciplines. We categorise
markets or disciplines as large, high potential when they are large-scale economies, there is a positive track record and there is
attractive conversion rate potential.
As such, during 2021 we classified Healthcare & Lifesciences and Technology as large, high potential disciplines. These will be
strategic areas of focus for the Group going forward.
INVESTMENT
APPROACH
STRATEGIC
VISION
2021 RESULTS
2022 STRATEGY
Sustained
investment
through cycle –
adding headcount/
offices/disciplines.
Create a market-
leading network of
offices, management
and headcount.
c. 40% of Group
gross profit/fee
earners; 20%
conversion rates.
Continue investment,
whilst improving
conversion rates and
productivity.
Gross profit increased 21% for
the year vs. 2019, with all regions
delivering growth. Germany delivered
the standout result, up 31%, driven
by its Interim business which was up
52%. Elsewhere, Greater China was
up 14%, South East Asia +32%, the
US +15% and Latin America +18%.
This category represents 38% of
Group gross profit (2019: 35%)
though in Q3 it crossed the 40%
barrier, in line with our Vision.
Aim for high
conversion rates.
Headcount
investment reflects
gross profit growth
and market
conditions.
Collectively return to
2007 peak levels of
operating profit and
conversion rates;
equivalent to c. 45%
of Group gross profit/
fee earners.
Continue to drive future
growth through existing
capacity, as well as
improving productivity
and therefore our
conversion rates.
Gross profit decreased 3% for the
year compared to 2019, though
was up 41% vs. 2020. Compared to
2019, trading conditions remained
tougher in the UK (-5%), France
(-9%), Australia (-7%) and the
Netherlands (-5%), all of which have
sizeable Page Personnel businesses
which were more heavily impacted
by the pandemic. Italy and Spain
delivered strong growth, up 8% and
16% respectively versus 2019.
Respond to market
conditions, focus
on high margin
opportunities.
Investment responsive
to market conditions.
Expected to represent
c.15% of Group gross
profit/fee earners; 30%
conversion rates.
Gross profit increase of 12%
for the year compared to 2019.
India and Japan delivered the
standout results in this category,
up 61% and 25% respectively vs.
2019. Elsewhere, we saw strong
recoveries in most markets, with
the UAE up 8% and Poland +44%.
Continued focus on
growth and ensuring
we deliver high
conversion rates.
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Strategic Review
MARKET DYNAMICS
The professional recruitment sector has always been highly sensitive to fluctuating economic conditions and is strongly influenced by client
and candidate confidence. Market liquidity can change rapidly, whether in terms of candidate confidence or availability of jobs.
It can also be localised, by geography or discipline, and differ between temporary and permanent placements in the same market.
In a number of geographic regions, such as Greater China or Latin America, our potential markets are very large, yet relatively immature.
This provides not only significant market share opportunities, but also challenges in areas such as business development. New markets can
take time to reach maturity, but the advantages of being an early mover and being able to build scale can be considerable.
As well as the influence of the general macro-economic environment on business activity, there are a number of market-based drivers that
can materially impact financial performance. These are split into elements which affect market liquidity and those which influence consultant
productivity and therefore gross profit. It is the nature of the professional recruitment market that strong market conditions will see drivers
align in both elements and this can have a dramatic impact on our overall performance.
MARKET LIQUIDITY
IMPACT
Candidate availability
Often highly discipline/geography-specific, especially at
midpoints in the cycle as client confidence grows. This
is a key driver of most other elements, as the quality of a
recruiter is most clearly demonstrated through their ability
to source difficult-to-find candidates.
Candidate confidence
A major influence on market liquidity
where the macro-environment is
sufficiently stable, candidates will look
to progress their careers, which helps
to drive job liquidity.
FINANCIAL IMPACT
Mainly visible through improvement in gross profit, a buoyant
market helps to drive consultant productivity.
GROSS PROFIT AND PRODUCTIVITY
IMPACT
Fees/rates
Group average
typically moves
within a 10% range
over the cycle
(19.5%-22%).
Wage inflation
Reflects level of candidate
shortage and liquidity within
a particular discipline or
geography, plus macro-
economic conditions.
Time to hire
As candidates become scarcer,
companies shorten the decision
making process in order not to
lose preferred candidates. This
is particularly noticeable in 2021,
with video interviewing reducing
time to hire.
FINANCIAL IMPACT
Notable influence on both gross profit and also conversion rate. Productivity, especially in
permanent recruitment, is significantly enhanced as these market drivers align positively.
Annual Report and Accounts 2021 18
CAPITAL ALLOCATION POLICY
The Group’s strategy is to operate a policy of
financing the activities and development of the
Group from our retained earnings and to maintain
a strong balance sheet position. We first use our
cash to satisfy our operational and investment
requirements and to hedge our liabilities under the
Group’s share plans.
We then review our liquidity over and above this
requirement to make returns to shareholders,
firstly by way of ordinary dividends. Our policy
is to grow the ordinary dividend over the course
of the economic cycle, in line with our long-term
growth rate. We believe this will enable us to
sustain the level of ordinary dividend payments
during a downturn, 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 or
share buybacks.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 19
Page Outsourcing
We have invested strategically in our Page Outsourcing brand over the past year. We believe that Recruitment Process Outsourcing (RPO)
and Managed Service Provision (MSP) services will become increasingly important channels to meet the needs of large clients in both
mature and developing markets. Our flexible recruitment outsourcing solution includes a range of recruitment activities, including those
focused on high volume as well as more specialist solutions. Our offering is comprised of 3 components: Outsourcing Solutions, which
include RPO, MSP and Total Talent Management (TTM), Project on Demand, which includes RPO Lite, and Outsourcing Consultancy
solutions.
Following any economic event, demand for outsourcing services increases as businesses look for agility and cost efficiencies. The latest
statistics indicate the global recruitment outsourcing industry is worth over £20bn and is expected to grow c. 19% annually until 2027.
We therefore believe that now is the perfect time to invest further in Page Outsourcing. Olly Harris joined the Group in Q3 2020 as our
new Page Outsourcing Managing Director, bringing over 20 years of experience in the recruitment industry, with the last 10 specifically
managing the recruitment outsourcing arm of the Robert Walters Group. Olly’s vision for the brand is to build a market leading outsourcing
business, underpinned by the wider PageGroup infrastructure.
The Group’s global footprint, combined with strong permanent and temporary capability across a breadth of sectors, positions us well to
build this outsourcing arm of the business. Additionally, the Group’s recent investment in back office infrastructure and technology enables
us to offer large-scale global outsourcing solutions for our clients.
Whereas our three recruiting brands work directly with end clients, outsourcing primarily works onsite, owning several, or all, of the client’s
recruitment needs. As well as managing the traditional agency channels on behalf of the client, many roles are filled via non-agency
channels, for example, internal moves, referrals or direct recruitment via a client’s website or LinkedIn. We work alongside our clients to
agree the recruitment strategy and the appropriate sourcing channels, and then deliver accordingly. Mature buyers of this service may fill
around 90% of their hiring through these non-agency channels. Therein Page Outsourcing brings incremental fees into the Group and is
strongly supported by our other three global brands to provide access to permanent, temporary and interim candidates across different
disciplines and levels.
With the pandemic recovery and ongoing candidate shortages, we see significant growth opportunity in 2022 and beyond. Recruitment
outsourcing provides our clients with agility, cost effectiveness and scale to meet recruitment needs. It provides key benefits in terms
of governance and process, including shorter time to hire, full visibility of the hiring process and an end-to-end recruitment solution.
Going forward, Page Outsourcing will continue to be a key area of investment and strategic focus for the Group, as we expand into new
geographies and disciplines.
OUTSOURCING MODEL
HIRING
MANAGER
AGENCY
CHANNELS
NON AGENCY
CHANNELS
INTERNAL
REFERRAL
DIRECT
Annual Report and Accounts 2021 Data and Technology
20
At PageGroup, we recognise the importance of data and technology in our business, be it via automation of processes or
as a source of differentiation. Our consultants need to feel empowered to make better and faster decisions, and this in turn
ensures we provide the best customer service to both our clients and candidates.
We are on a continuous journey with our data and technology capabilities and have made significant progress in this
area in 2021. Our integrated suite of tools use AI, data and a positive user experience to do more of the heavy lifting on
behalf of our consultants, making us an attractive employer and leaving them to focus on what they do best: building
human relationships. Customer Connect, our core operating system, is now used by over 85% of our fee earners, with
the remaining markets of France and Latin America scheduled to go live by the end of Q2 2022. We believe that having
all our consultants operating on a high-performing system with a single customer view, will contribute towards our goal of
increasing productivity.
Integrated sales and marketing
system with Salesforce at its centre
NetSuite
GFS
NextGen
customer
connect
PageInsights is our unique business intelligence tool
that combines our internal data with relevant external
data to provide meaningful insights to our teams. For
example, it identifies sectors and clients where our
consultants should focus their efforts and highlights
the latest market pressures around key roles. The
insights provided enable our teams to have relevant
conversations and build appropriate action plans,
thereby supporting our clients to plan their talent
needs.
The ongoing standardisation of our data and
technology tools is critical to allow us to scale future
opportunities faster. It drives effective and efficient
deployment of new functionality as standard for all
markets. It also allows for easier development and
launch of innovation. For example, the launch of
data labs to examine how data can drive activity,
the use of automation to reduce mundane tasks, or
the delivery of relevant insights and analytics to the
recruiter. We are excited about the future of our data
and technology initiatives and this will continue to be
a strong focus area for the Group. These initiatives
enable us to put the customer at the centre of what
we do and allows us to address ever-evolving client
and candidate demand.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information
21
Key Performance Indicators
We measure our progress against our strategic objectives using the following key performance indicators:
FINANCIAL
Gross profit growth (%)*
-28.1
2021
2020
2019
2018
2017
5.0
9.8
15.9
* Increase in gross profit in constant currency over the prior year
Gross profit diversification (%)
Ex-UK
Ex-Accounting and
Financial Services
85.4%
67.9%
49.1
How measured:
Gross profit growth represents revenue less cost of sales expressed as the
percentage change over the prior year. It consists principally of placement
fees for permanent candidates and the margin earned on the placement of
temporary candidates.
Why it’s important:
This metric indicates the degree of income growth in the business. It
can be impacted significantly by foreign exchange movements in our
international markets. Consequently, we look at both reported and
constant currency metrics.
How we performed in 2021:
Gross profit increased +49.1% in constant currencies and +43.8% in
reported rates (against 2019: +7.0% in constant currencies and +2.6%
reported rates). This was due to the improvement in trading conditions
coming out of the COVID-19 pandemic.
Relevant strategic objective:
Organic growth.
How measured:
Total gross profit from: a) geographic regions outside the UK; and b)
disciplines outside of Accounting & 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 & Financial Services disciplines.
Ex-UK
Ex-Finance
How we performed in 2021:
2021
2020
2019
2018
2017
85.4
86.7
84.2
83.0
80.2
67.9
65.2
65.1
65.2
63.3
Basic earnings per share (p)
2021
-1.8
2020
2019
2018
2017
37.2
32.2
32.5
26.5
Geographies: The percentage decreased slightly to 85.4% from 86.7%
in 2020, largely as a result of the UK being impacted more severely by the
COVID-19 pandemic in 2020.
Disciplines: The percentage increased to 67.9% from 65.2% in 2020, as
the Group saw significant growth in disciplines such as Technology during
2021.
Relevant strategic objective:
Diversification.
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 underlying profitability of the Group and the progress
made against the prior year.
How we performed in 2021:
The Group saw a more than 100% increase in Basic EPS to 37.2p, due to
the strong performance during the year.
Relevant strategic objective:
Sustainable growth.
Annual Report and Accounts 2021 22
Cash (£m)
2021
2020
2019
2018
2017
154.0
166.0
97.8
97.7
95.6
Ratio of permanent vs
temporary placements
Gross profit Permanent
Temporary
2021
2020
2019
2018
2017
77
72
75
76
75
23
28
25
24
25
STRATEGIC
Fee earner headcount
growth (%)
-14.6
-1.5
2021
2020
2019
2018
2017
18.2
11.3
16.7
How measured:
Cash and short-term deposits.
Why it’s important:
The level of cash reflects our cash generation and conversion
capabilities and our success in managing our working capital.
It determines our ability to reinvest in the business, to return
cash to shareholders and to ensure we remain financially robust
through cycles.
How we performed in 2021:
Cash decreased to £154.0m (2020: £166.0m). The Group
generated strong cash in 2021 and this balance is net of interim
and special dividends paid, totalling £100.2m.
Relevant strategic objective:
Sustainable growth.
How measured:
Gross profit from each type of placement expressed as a
percentage of total gross profit.
Why it’s important:
This ratio reflects both the current stage of the economic
cycle and our geographic spread, as a number of countries
culturally have minimal temporary placements. It gives a guide
as to the operational gearing potential in the business, which is
significantly greater for permanent recruitment.
How we performed in 2021:
The ratio increased to 77:23 (2020: 72:28). This is driven by
the post-pandemic recovery being more weighted towards
permanent recruitment, with temporary, particularly at lower
salary levels, taking longer to recover.
Relevant strategic objective:
Diversification.
How measured:
Number of fee earners and directors involved in revenue-
generating activities at the year 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 our expectations as
to the level of future demand for our services above the existing
capacity within the business.
How we performed in 2021:
Net fee earner headcount increased by 937, or +18.2% in the
year, resulting in 6,082 fee earners at the end of the year. We have
continued to invest, particularly in certain areas of the Group such
as Technology, Contracting, Healthcare and Life Sciences, and
Digital, adding over 700 experienced fee earners to the Group in
the year.
Relevant strategic objective:
Sustainable growth.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 23
Key Performance Indicators
STRATEGIC
Gross profit per fee earner (£’000)
2021
2020
2019
2016
2018
2017
113.3
140.4
138.3
139.9
Fee earner:operational
support staff ratio
Fee earner Support
2021
2020
2019
2018
2017
78
77
78
79
78
22
23
22
21
22
Conversion rate (%)
2021
2020
2.8
2019
2018
2017
19.2
17.1
17.5
16.6
How measured:
Gross profit divided by the average number of fee-generating staff,
calculated on a rolling monthly average basis.
157.2
Why it’s important:
This is our indicator of productivity, which is affected by levels of
activity in the market, capacity within the business and the number of
recently hired fee earners who are not yet at full productivity. Currency
movements can also impact this figure.
How we performed in 2021:
Productivity increased +43.7% to £157.2k (2020: £113.3k). This
productivity increase is a result of our strategic initiatives and
investments made in recent years and our strategy of maintaining
our operating platform through the pandemic, combined with the
improved trading conditions in 2021.
Relevant strategic objective:
Organic growth.
How measured:
The percentage of fee earners compared to operational support staff
at the year end, expressed as a ratio.
Why it’s important:
This reflects the operational efficiency in the business in terms of our
ability to grow the revenue-generating platform at a faster rate than the
staff needed to support this growth.
How we performed in 2021:
The ratio increased to 78:22 from 77:23 in 2020. This was driven by
+18.2% fee earner headcount growth, as well as benefiting from our
operational support initiatives. Fee earner joiners included the addition
of over 700 experienced hires during the year. Operational support
headcount increased by 207.
Relevant strategic objective:
Sustainable growth.
How measured:
Operating profit (EBIT) expressed as a percentage of gross profit.
Why it’s important:
This reflects the level of fee-earner productivity and the Group’s
effectiveness at controlling costs in the business, together with the
degree of investment being made for future growth.
How we performed in 2021:
The Group’s conversion rate increased to 19.2% (2020: 2.8%), driven
by the significant increase in gross profit as a result of the trading
performance. The conversion rate improved significantly as the year
progressed, with a H2 conversion of 22.0% compared with a H1
conversion rate of 15.9%.
Relevant strategic objective:
Sustainable growth.
Annual Report and Accounts 2021 24
PEOPLE
Employee index
Positive engagement score
82%
Management experience
2021
2020
2019
2018
2017
13.0 years
12.3 years
12.5 years
12.0 years
11.9 years
How measured:
A key output of the employee surveys undertaken periodically within
the business.
Why it’s important:
A positive working environment and motivated team helps productivity and
encourages retention of key talent within the business.
How we performed in 2021:
We recorded an 82% positive score for employee engagement in the latest
Employee Engagement Survey in 2021. This compares with 83% in the last
equivalent survey performed in 2019. The 2021 survey was a combination
of questions, including: how valued our people felt; how proud they were to
work for PageGroup; and how they can see their work relates to PageGroup’s
purpose of changing lives for people through creating opportunity to
reach potential.
Relevant strategic objective:
Sustainable growth.
How measured:
Average tenure of front-office management measured as years of service for
directors and above.
Why it’s important:
Experience through the economic cycle and across both geographies
and disciplines is critical for an organic cyclical business operating across
the globe. Our organic business model relies on an experienced management
pool to enable flexibility in resourcing and senior management succession
planning.
How we performed in 2021:
The average tenure of the Group’s management increased to 13.0 years
(2020: 12.3 years).
Relevant strategic objective:
Talent and skills development.
GHG EMISSIONS
To become carbon net zero
by 2026
How measured:
Direct and Indirect GHG emissions calculated in line with the GHG Protocol.
Energy derived emissions – CO2e
tonnes per 1,000 employees
-17%
Why it’s important:
The emissions calculations look at the CO2e impact of our operations in
absolute terms.
How we performed in 2021:
Total GHG emissions (scope 1, 2 and 3) reduced by 17% to 8,396 tonnes
CO2e and combined scope 1 & 2 emissions reduced by 22% to 3,403 tonnes
CO2e. Reductions have been driven primarily by the transition of our offices to
renewable energy and a continued reduction in business travel.
Relevant strategic objective: Sustainable growth.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 25
Q&A with Steve Ingham, CEO
this positioned us for the great results
in 2021, and as we enter 2022 and
beyond. Clearly, some of the results
we have delivered have benefitted from
an element of pent-up demand, which
we believe we have maximised, but,
nonetheless, the recovery is continuing
at pace.
There is no doubt that the current
recovery is different to that experienced
previously coming out of the global
financial crisis. However, we have also
invested significantly over the last
10 years to change the structure and
footprint of the Group. In 2012, when we
first announced our vision to focus on
our 5 Large, High Potential geographical
markets of Greater China, Germany,
Latin America, South East Asia and the
US, they represented just 12% of the
Group. Today, they represent around
40%, and of course the Group is
much bigger.
More recently, strategic initiatives such
as our new High Potential Discipline
categories of Technology and Healthcare
& Life Sciences, as well as our
experienced hire programme and Page
Outsourcing, all mean we are better
aligned to the current market needs.
Alongside this, the transformation of
both our technology platforms and
optimised operational support structures,
place us in an excellent position to
maximise current market conditions.
This investment in technology provides
us a great advantage in finding additional
candidates in a candidate-short market.
We continue to assess, evaluate and
adopt new innovation, including areas
such as AI and automation via Bots.
Our move into the RPO and MSP
market through our Page Outsourcing
brand allows us to tap into a new area
of the market, using the power of the
Page brand and broad geographic and
discipline coverage. In addition, further
leveraging the back-office investments
we have made in recent years should
ensure delivery will, in time, have a
conversion rate in line with the wider
Group. We also strategically invested in
experienced hires, which have brought
great benefits to the Group.
What is your outlook for 2022?
We believe strongly that the decisions
and actions we took during the
pandemic have positioned the Group
to recover more quickly and take
market share. The markets we are
focused on have strong fee rates and
Introduction
Steve Ingham has led PageGroup since
2006 and his tenure makes him one of
the most experienced CEOs in the FTSE
250. Steve’s career with PageGroup spans
over three decades. When he joined,
the Company had just 240 staff in three
countries.
Driven to create opportunity for people,
regardless of background, he has played
an integral role in building a truly global
business with a headcount of just under
8,000 employees across 37 countries.
Under Steve, the business has expanded
and diversified while maintaining its ethos
of rewarding collaborative teamwork and
inclusivity.
Following a near-fatal skiing accident in
March 2019, Steve is a wheelchair user
and understands first-hand the importance
of employers’ commitment to workplace
diversity and the need for opportunities to be
presented to the disabled workforce and the
barriers that they face.
How did you recover so
quickly from 2020?
When the pandemic started to impact
our businesses globally, we performed a
rapid COVID impact assessment, from
which we reacted swiftly by protecting
and investing in the platform. We have
continued to invest strategically in the
business over the past 18 months, and
“We have continued
results in 2021. “
to invest strategically
in the business over
the past 18 months,
and this positioned
us for the great
Annual Report and Accounts 2021 26
are empowered to lead, they have
ownership and accountability to use the
Board to steer and guide – not to direct.
Why did you choose to invest
in experienced hires, and
what is your plan for this area
going forward?
Based on the feedback we were
receiving at the end of Q2 last year, it
was clear that many of our competitors
were making short-term, knee-jerk
decisions that were negatively affecting
the engagement and morale of their
workforce. This presented us with a
unique opportunity to bring in talent
which would position us well as the
market recovered.
This programme allowed us to add over
1,100 experienced hires to the Group,
who have added c. £77m to gross
profit in 2021. These experienced hires
have brought numerous benefits to the
Group. Firstly, on average they reach full
productivity faster than someone who
joins us from outside our industry.
They also bring numerous softer
benefits to the Group, which have
contributed to our strong results in
2021. These are individuals who are
already experienced in their recruitment
career and have therefore already
decided that recruitment is for them.
As such, attrition is substantially lower.
There is also a much lower need for
training and this creates a significant
time saving.
Bringing in consultants who have
worked for two or three other
recruitment companies highlights to
existing employees that the tools,
culture and careers available at Page
are better than they could expect
elsewhere. Many joined us from
smaller boutique agencies, and these
individuals have brought new customer
relationships to us, which we have been
able to take to the next level due to our
breadth of offering.
In the future our strategy is, where
possible, to recruit experienced hires,
supplemented by both graduates and
recruits from outside of our industry.
This will further support our plans for
the disciplines and markets where we
see the most potential for growth during
2022 and beyond.
huge potential for growth. This highly
profitable growth continues to drive
our strong cash generative business
model, which should enable us to make
further supplementary cash returns to
shareholders in the future.
There continues to be a high degree of
global macro-economic uncertainty as
COVID-19 remains a significant issue
and restrictions remain in a number
of the Group’s markets. However, we
are maintaining our focus on driving
progress towards our long-term
strategic goals.
What progress have you
made in the area of ESG?
We have made significant steps forward
in the area of ESG this year. We have
built a new sustainability function which
delivered our first sustainability report
for the Group, allowing us to showcase
all of our ESG work. We are also seeing
the emergence of ESG as a recruitment
market, and by being at the forefront
of this industry, we are helping the best
candidates get the best roles. This in
turn helps our clients and allows them
to combat climate change.
We have linked our global strategy to
the UN sustainable development goals
and have signed up to the UN global
compact. We are carbon neutral and
are committed to be carbon net-zero,
with the ambition to be carbon positive,
by 2026. We are making great progress
in this area and 77 of our offices are
now either supplied by renewable
energy or green certified, representing
around 53% of our global office
footprint.
We continue to help the market break
down barriers to employment through
LinkedIn workshops and CV writing
workshops with charities and schools.
Through all of this work on ESG, we
have set ourselves an ambitious goal
to change over 1 million lives globally,
within 10 years.
What have you been doing in
the area of D&I?
Inclusion is at the heart of Page and
our culture puts our people first. We
are hugely proud of our reputation as
an inclusive employer, as well as a
professional and ethical recruiter. Caring
about society and the environment and
giving back to the communities where
we live and work has always been part
of our PageGroup DNA.
As a recruiter we are in a position of
influence. We are actively committed
to diversity and inclusion and we are
privileged to also be able to support
and promote diversity, inclusion
and awareness of ethical processes
and behaviours for our customers
and society as a whole. We have
a dedicated D&I function with
representation from across the Group.
We are actively committed to D&I with
a proportion of all senior management
bonuses link to gender balance.
We have regular pulse surveys
to understand the views of our
people, and have accelerated career
programmes and promotion targets
related to gender. We have reverse
mentoring and training programmes in
place throughout the Group, helping
senior management understand the
different views of our people.
“
Inclusion is at the
heart of Page and
our culture puts our
people first.
“
One example this year, is our new
Executive Shadow Board. The aim of
the Shadow Board is to bring together
people who can offer a different
perspective on key business issues.
The purpose is to discuss solutions
and make recommendations on topics
that are key to the future success of
the business. Shadow Board members
are actively involved in idea generation
and follow through – there are no
constraints and no fixed agendas. It
creates a regular platform to share their
views, be heard, have a seat at the
table, be the voice of diverse employees
and the unique opportunity to offer
different perspectives and increase
diversity of thought.
The members are truly diverse with
representation across race, age,
gender, LGBTQ+, social background,
disability, geography and length of
service. It gives a true global and
regional view of the Group. They
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 27
Our Culture & Engagement Framework
Culture & Engagement Framework
OUR PURPOSE
WHY WE DO WHAT WE DO
OUR VALUES
THE WAY WE DO WHAT WE DO
PAGEGROUP
CHANGES LIVES
Reflected in everything we do,
setting us apart from our competition
WE MAKE A DIFFERENCE
WE ENJOY WHAT WE DO
WE VALUE DETERMINATION
WE ARE PASSIONATE
WE WORK AS A TEAM
OUR MEASURES
Keeping us on track,
focused on continuous
improvement
OUR PEOPLE
Employee voice
Retention
Career progression &
mobility
Changing lives, giving
back to others
Rewards & Recognition
Sustainability
Talent Development
Health & Wellbeing
Diversity & Inclusion
Annual Report and Accounts 2021 Our Culture & Engagement Framework
Culture & Engagement Framework
28
OUR PEOPLE
AN INCLUSIVE WORKPLACE
WHERE EVERYONE CAN THRIVE
OUR CUSTOMERS
STAYING AHEAD –
LEADING OUR INDUSTRY
PageGroup is all about people
Customers at the centre of our business
Creating opportunities to engage with people
through key life moments; having valuable
conversations – more frequently and with
more relevant dialogue.
CAREER PROGRESSION
Transparent and meritocratic career paths
Aiming to be the most customer-centric recruiter,
setting us apart from the competition by delivering
an excellent experience for our customers. Staying
ahead – leading our industry to best support our
customers.
Improving processes and tools to support consultant
productivity through:
TALENT DEVELOPMENT
Industry-leading training
DIVERSITY & INCLUSION
A culture of inclusion
REWARDS & RECOGNITION
Celebrating success; fostering a high-trust,
high-performance culture
HEALTH & WELLBEING
Ensuring our people are supported and feel
cared for
GIVING BACK TO OTHERS
Changing lives in the communities where we
live and work
LEVERAGING TECHNOLOGY
Improving our customer experience
INNOVATIVE APPROACHES
Providing a more effective service
BUILDING RELATIONSHIPS
Going further to build lasting relationships with our
clients, candidates and consultants
Through a personal, professional service, creating
the opportunity for candidates and clients to reach
their potential
OUR CUSTOMERS
EXTERNAL RECOGNITION
Engaging our customers –
NPS, customer satisfaction
Retaining our customers
– repeat business, Preferred
Supplier Agreements
Innovation
Public commitments
Awards
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 29
Our Culture
Our culture puts people – all our people – and teamwork first, and we are hugely proud of our reputation as an inclusive employer as well
as a professional and ethical recruiter.
Our purpose is to change lives for people through creating opportunity to reach potential and we do that every day – for our own people,
for our candidates and clients, and for society as a whole.
The way we do things – our values – are reflected in everything we do, all over the world. They’re an integral part of our business and help
set us apart from our competitors.
As a recruiter we are in a position of influence. We are actively committed to diversity and inclusion and we are privileged to also be able to
support and promote diversity, inclusion and awareness of ethical processes and behaviours for our customers and society as a whole.
OUR PURPOSE
WHY WE DO WHAT WE DO
Our Purpose is why we do what we do. It’s the reason we are
in business and it is embedded in the minds and the everyday
language of our people across the world.
”
Steve Ingham
CEO
We formally introduced our PageGroup Purpose
at the end of 2017 and it resonates so strongly
with our people that since then it’s become part
of the everyday language at Page.
We will keep investing in our people and our
customers as we pursue our purpose to change
lives for people through creating opportunity to
reach potential.
”
OUR VALUES
THE WAY WE DO WHAT WE DO
” A lot has changed since we started business in
The way we do what we do – our values
have always been an integral part of
PageGroup culture, and they always will be.
1976, but our values have always underpinned
the way we work. They’re embedded in our career
progression and talent development processes
and demonstrated through the way we reward
and recognise great performance. That has a
direct, positive impact on our customer service
and in our latest ‘Have Your Say’ survey, nearly
80% of our people agreed that our values match
the culture of PageGroup.
”
Isabelle
Bastide
Executive Board
Director
Annual Report and Accounts 2021 Our Culture
30
OUR PEOPLE
AN INCLUSIVE WORKPLACE WHERE EVERYONE CAN THRIVE
”
Inclusion is at the heart of Page – we want to lead our industry as a diverse
and inclusive community where everyone can thrive.
Sarah Kirk
Global DE&I
Director
We’re proud of our commitment
to diversity, equity and inclusion
and our relentless focus on
supporting and promoting a
culture and working environment
where all our employees feel
valued and heard, and feel that
they belong.
”
We have worked hard over the years to create an inclusive culture of trust and compassion
and a working environment where all our people feel valued, have a voice, are heard,
belong, feel comfortable being themselves and can reach their potential.
SHADOW BOARD
This year we introduced our Shadow Executive Board, in addition to the Shadow Boards we have launched in seven countries.
This initiative helps the Board to hear a different viewpoint from a diverse group of people and ensures different voices are
represented on key business issues and in the strategic decision making of the business.
”
Nupur Mehta
Director, India
The Shadow Executive Board is like a dream come true.
To be able to work with twelve so different yet so similar
colleagues from across the globe, all with the one agenda
of driving change, has been a phenomenal learning. We’re
all actively involved in idea generation and feedback on
strategic topics that are key to the future success of Page.
”
Shadow Executive Board
Kyle
Burnett
Sabrina
Berfas
Joanna
McCrae
Aurelien
Beaucamp
Nupur
Mehta
Boudewijn
Beuvery
Lorena
Gutierrez
Jean-Baptiste
Olagne
Sharon
SY Li
Pamela
Gonzalez
Nicolai
Dwinger
Anne-Sophie
Legrain
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 31
Our Culture
OUR PEOPLE
OUR PEOPLE
”
Gender equality is a key focus for us and we have signed up to the
UN Global Compact Network with a gender target of 50/50 in senior
leadership roles by 2030. We are also proud to have been invited to
join Target Gender Equality – a gender equality accelerator programme
aimed at setting and reaching ambitious corporate targets for women’s
representation and leadership.
Our Global Female Mentoring Programme, launched in 2013 to
engage, enable and empower our female leaders, currently has over
330 successful partnerships. The programme has directly impacted
retention with several mentees telling us it is the reason they have
stayed at Page and mentors sharing that they have changed their
leadership style having looked at the world from a different perspective.
This year will see the launch of our Global Female Career Sponsorship
programme, supporting our commitment to accelerating the
progression of women into senior leadership roles, and we will continue
to highlight and celebrate women across PageGroup to continue
raising awareness and engagement.
It is fantastic to have someone who can
guide you with different perspectives
about work and life beyond the daily
operational focus. It definitely helps me
a lot to develop and evolve further in the
right direction. I think everyone should
have a mentor! ”
Emma Wu
Associate Director,
Greater China
Our Unity@Page strategy includes our Reverse Mentoring Programme. This successful initiative involves our culturally diverse employees
mentoring our senior leaders. In the UK our mentees are members of the senior management team and UK based Executive Board
members.
”
The Reverse Mentoring programme is excellent. Such a powerful tool to shape
mindsets and behaviours of our senior leadership team. In my case, my mentee
is a member of the Executive Board. It’s great to be able to discuss real action
around how to escalate having better racial diversity in leadership roles.”
Marcus Johnson
Senior Operating Director, UK
We have signed the Race at Work Charter and have put in place Unity Steering Committees. Across PageGroup our initiatives have
seen the UK participating in the #10000 Black Interns programme and supporting Black History Month including a live webinar ‘Proud to
be – Black & British’. In May 2021 the USA and UK hosted an event celebrating World Culture Day with performances from some of our
incredibly talented employees.
Annual Report and Accounts 2021 Our Culture
32
”
Living a culture where everyone can be themselves
is part of PageGroup. That’s why I’m motivated,
engaged and proud of the environment we’ve
created, allowing this company not only to change
our employee’s lives, but also candidates’ and clients’
lives with the same spirit.
”
Juan Ignacio Silva
HR Director, Mexico and Panama
Our focus on creating an environment
where every individual can thrive includes
supporting and promoting the message
of acceptance without exception. Every
year we celebrate Pride Month in support
of the LGBTQ+ community across the
world. We focus our activities on raising
awareness, sharing personal stories
and experiences, as well as signposting
access to advice and support. In
February 2021 we ran a Global Live
Event which included very personal and
moving contributions from our senior
LGBTQ+ role models and allies.
We strive to foster a work environment that is supportive of family life. We recently reviewed all our maternity and paternity
policies globally, and our support includes free emergency child and elder care, pre and post maternity workshops and new
parent seminars to help all parents at PageGroup understand the practical and emotional support that is available to them.
”
Page’s supportive culture has definitely made everything easier, especially
through our flexible working arrangements. This has given me the
opportunity to adjust my working hours and location to best suit my
needs (or I should say my daughter’s) and my team’s needs – having an
understanding manager and a group of supportive peers is invaluable.
”
Yang Chen
GTS Manager, Singapore
”
Our Ability@Page network is aimed at raising awareness of the barriers
in the workplace faced by individuals with disabilities – both visible and
invisible – focusing on ability rather than disability.
We have signed the Valuable 500 Pledge to raise awareness of disability
inclusion, have started an internship programme with Ambitious About
Autism, and were proud to win the Getting Started category in the RIDI
(Recruitment Industry Disability Initiative) Awards. PageGroup is Gold
Clear Assured, and this year we received accreditation as a Disability
Confident Leader – the highest level of the government Disability
Confident Scheme.
Our CEO, who is a wheelchair user, is active in lobbying for greater
workplace inclusivity for all.
Each year we support World Mental Health Day with a global awareness
campaign, and we have a network of Mental Health Champions and
Mental Health First Aiders. In December, all regions participated in raising
awareness of the International Day of Persons with Disabilities.
It’s great that Page takes
wellbeing seriously and is
committed to supporting the
mental health and wellbeing
of our employees by
investing in training such as
Mental Health First Aid.
”
Jasmine Timpano
HR Manager,
Australia
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 33
Our Culture
OUR PEOPLE
GENDER DIVERSITY
Board Directors
Senior Management
Other Employees
2021
2020
5 (62.5%)
5 (62.5%)
3 (37.5%)
3 (37.5%)
2021
2020
448 (62%)
271 (38%)
349 (72%)
139 (28%)
2021
2020
3,212 (42%)
4,441 (58%)
2,867 (44%)
3,705 (56%)
Throughout 2021 we have continued to monitor our progress in gender diversity. We are pleased to report that key metrics are improving.
For example, 30.3% of our most senior population as defined by the Corporate Governance Code are female (28.3%, 2020). Our Associate
Directors and above, who represent our senior global employee population is 38% female. Demonstrating our commitment to gender
diversity the Group has set the goal of having 50:50 gender split in senior management grades by 2030.
For further details on actions we are taking to improve female representation across the business please see pages 86 to 87.
TALENT DEVELOPMENT AND CAREER PROGRESSION
Career progression and talent development are an integral part of
our culture. A clear and transparent career journey sits alongside
the development and support needed to help our people reach their
potential.
Our blended learning experience, supported by a digital learning
platform, means our people can use a wide range of assets
designed to help them learn in a way that suits them. We are
constantly creating new content to provide the best and most
relevant support possible as needs change for our people, our
business and society as a whole.
Our annual talent review process underpins the development of
each individual, supporting their career goals and strengthening our
leadership succession planning. Through a combination of readily
available internal resources and relationships with specialist third-
party providers, our development and recognition programme for
high potential employees and future leaders provides an integrated
coaching programme that helps embed our culture of inclusion.
REWARDS & RECOGNITION
”
Our Purpose states that ‘PageGroup changes
lives for people through creating opportunity
to reach potential’. That’s true for our own
people as much as it is for our candidates
and clients. That’s why we have a clear and
transparent career path with international
opportunities, supported by structured training
and development. We’re proud of our organic
growth and that we promote from within – most
of our senior leaders started their life with Page
as consultants.”
Stephen Tan
Regional Talent Development
Director, APAC
At PageGroup, reward is broader than financial outcomes. We understand the importance of recognising people for their talent, their
contribution and their success. Our reward structure is designed to support people, allowing them to grow and develop in their roles, with a
healthy and positive work life balance.
As with all things related to our people, we listen. In our all employee Have Your Say survey in 2021, they told us:
I am fairly rewarded for my contribution to PageGroup
The benefits provided by PageGroup are competitive
Favourable
Neutral
Unfavourable
Favourable
Neutral
Unfavourable
2021
58%
24%
18%
2021
58%
23%
19%
During 2020, our people made sacrifices to help keep our business ready to take advantage of the post pandemic upturn. This year that
was at the centre of our decision making as we reviewed pay investment across our markets, and a return to paying bonuses.
Being at the forefront of the recruitment industry, we are well aware of the importance of retaining talent, so we have been sure to ask our
own people their thoughts on what works for them and what benefits, career paths, services and support we can provide that will really
make a difference.
As a result we have continued our programmes recognising achievement, and added to them with virtual events and award schemes to
reinforce a culture and sense of belonging as we continue our hybrid working model within the ongoing restrictions of COVID-19.
Annual Report and Accounts 2021 Our Culture
HEALTH & WELLBEING
34
Our flexible approach to working life, supported by innovative technology, facilitates work-life balance and fosters self-development
and career growth.
Flexible benefits can be tailored by each individual to suit their lifestyle, and our celebration of success through rewards and
incentives helps promote a culture of teamwork and achievement.
Across all regions, support for our people includes comprehensive Employee Assistance Programmes, mental health champions,
support networks and global awareness campaigns.
Nothing is more important than the health and wellbeing of our people. That focus was a particular strength for us with the
emergence of the global COVID-19 crisis and has remained at the forefront of our engagement activities and planning.
Our very visible and approachable leadership team make use of all our communication channels to stay in touch and, crucially,
we listen. Through our continuous listening strategy we ask our employees relevant questions at the relevant time to capture their
feelings and feedback at the moments that really matter. Those insights from our people drive genuine understanding, change
and improvement.
Our 2021 all-employee ‘Have Your Say’ survey showed an 11% increase compared to the 2019 survey in response to ‘PageGroup
supports balancing work and personal life’.
In October 2021, we recognised and supported World Mental Health Day with a global campaign and, at the same time, ran a
related global pulse survey on health and wellbeing.
Results from the survey included:
76% Response rate
88%
“ I would describe PageGroup as an
organisation that cares for its people”
84%
“ I feel I can approach my line manager to
talk about my health and wellbeing”
84%
“ My line manager genuinely cares about
my health and wellbeing”
Our Health & Wellbeing Survey Results
World Mental Health Day 2021
G L O B A L
Thank you for letting us know your thoughts about your wellbeing - globally 76% of you responded,
telling us how you feel and sharing your comments.
Here are a few of the key global results, and keep a look out for your local results which will be shared
by your leadership teams. As we move forward, you will see plans and activities which your feedback
has helped to shape.
THE MOST FAVOURABLE RESULTS GLOBALLY WERE:
88.1%
87.1%
84%
83.8%
I would describe PageGroup as
an organisation that cares for
its people
I receive support from
people around me (ie.
Leadership, colleagues) at
work when I need it
I feel I can approach my
line manager to talk about
my health and wellbeing
My line manager genuinely
cares about my health and
wellbeing
AREAS WHERE PEOPLE FEEL THEY WILL CONTINUE NEEDING THE MOST SUPPORT:
33.3%
29.4%
24.7%
22.9%
My workload
Changing priorities
& expectations
Access to technologies &
systems
My remote work space
ADDITIONAL INSIGHTS FROM OUR GLOBAL RESULTS:
32%
48%
of people felt the health and
wellbeing initiative they would
most benefit from is Additional
time off
of people stated they have had
infrequent periods of work-related
stress that are manageable
(top response)
Never
1 day per wk
2 days per wk
Working from
home in the
last month
18%
18%
17%
3 days per wk
14.5%
4 days per wk
10%
Every day
22%
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 35
Our Culture
AT A GLANCE
Launched
Shadow Boards
to hear different
viewpoints from a diverse
group of people across
PageGroup
Reverse
Mentoring
Programme
within our
Unity@Page
network
W HER E A M ULT ICU LTUR AL WO RKF ORC E TH RI V ES
Reverse Mentoring Programme
B E P A R T O F T H E E V O L U T I O N
WHERE OUR JUNIOR CU LT URA LLY DIVE R SE C OLLE AGU ES
MEN T OR OU R SE NIOR LE A DER S
Our investment
in technology
allows all our people
worldwide to work
remotely
With our
Continuous
Listening
Programme
we regularly ask our
employees how they’re
feeling so we can
provide the best
possible
support
Awarded Best Places
to Work for LGBTQ+
equality in North America
LGBTQ+ Inclusion
Award 2020 –
GOLD Employer
in Australia
Over
+330
partnerships
within our
Female
Global
Mentoring
Programme
Engagement
scored
82%
in our all-employee
Have Your
Say Survey
Have
your
say
91% of our people
feel we have implemented effective systems
for keeping connected with our customers
while working remotely
Our #stayingconnected
programme helps us stay in
contact with each other and our
customers while working remotely
Awarded Top
Employers
Europe 2021 for 8
countries
Awarded Best
Places to Work in
Greater China 2020
Recognised for disability
equality with Clear
Assured GOLD
and as a Disability
Confident
Leader
Signed up to the Race
at Work Charter
and #10000 Black
Interns Programme
Social Mobility Pledge
with Kelvin Stagg, CFO as senior
sponsor for Social Value
Financial Times Top
100 Leader in
Diversity
Rewards and Incentives
Programmes which promote a
culture of teamwork and achievement
A Times Top 50
Employer for
Women 2020
Annual Report and Accounts 2021 Our Culture
36
Our PageGroup Purpose resonates so
strongly with our people that it’s become part
of the everyday language at Page.
PAGEGROUP
CHANGES LIVES
79%
of our employees believe
our Values
represent the culture
of PageGroup
WE MAKE A DIFFERENCE
WE VALUE DETERMINATION
WE ARE PASSIONATE
WE ENJOY WHAT WE DO
WE WORK AS A TEAM
84%
of our employees
believe we are doing
what is necessary to
support our
customers
during
COVID-19
Global DE&I campaigns including
International Women’s
Day, Pride Month, and
World Mental Health Day
89%
of our people
feel proud
to work for PageGroup
Our CEO Steve Ingham is
championing workplace
disability equality
Sustainability programme including
cycle to work schemes and
Be Green committees
Mandatory
Global DE&I
training for our senior
leadership team
Global maternity
return rate
88%of
Global Wellbeing
Toolkit to support
our employees wherever
they’re working
Global Workplace
Flexibility programme
gives our people more
choice, agility and balance
49%
of managers and
41%
of Directors
globally are
female
A cutting-edge blended
learning programme
supported by our digital learning
platform
programme including parenting
seminars, maternity workshops,
free emergency childcare
Giving Back to
Others programmes
have included 220kg of
clothing donations, beach
clean-ups, charity cycle
tours and Movember
Mental Health
Champion
Networks providing
support, mental health
resources, workshops and
seminars
Flexible Benefits
Programme can be
tailored by our people to
suit their lifestyle
CSR programme
including using our
recruitment skills to
give CV, career and
interviewing advice to
those in need
COVID-19
resource centre to
help support our people
during the global pandemic
Global Networks giving a
forum where we can listen to our
people and act on their feedback
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 37
Our Culture
CULTURE AND THE BOARD
The Board is responsible collectively for the Group’s culture. At least twice a year the Board holds deep-dive sessions reviewing
and monitoring the status of the Group’s overall culture and enabling the Board to identify any relevant trends based on
movement of key measures tracked over time.
These sessions focus on areas that are linked to our Purpose and Values and the Chief People Officer and Global Diversity,
Equity & Inclusion Director share data and their insights and views on the Group’s culture and engagement framework. Core
features of the review include retention and promotion data, DE&I metrics, training and wellbeing programmes, annual and pulse
survey results including employee satisfaction ratings.
The regularity of the sessions enables Board members to keep pace with, and challenge if necessary, the progress being made
on the programme of cultural and engagement initiatives running across the Group, and to shape and decide future actions.
EMPLOYEE & CUSTOMER VOICE
The Board ensures the employee voice is heard in the Boardroom through a wide range of activities and involvement. Each
and every member of the Board is responsible for engaging with the workforce. Instead of adopting one of the three specified
workforce engagement methods set out in the Corporate Governance Code (the “Code”), the Board “works as a team”, in line
with one of our core values, and engages through the various methods and activities described below. The Board considers
this is the most effective engagement approach in the Company’s case as the rich mix of engagement activities provide more
meaningful dialogue with multiple points of contact with different members of the Board, ensuring that the Board is genuinely
close to the issues that matter most to our people.
Employee voice is strongly embedded into the work of all our main Board Directors. The Board has a standing agenda item for
Board members to share the employee voice activity that each has undertaken since the previous meeting. For 2021, Board
members report that there has been strong and effective engagement with the workforce throughout the year.
The Board has continued to adapt its ways of interacting with employees using virtual tools, pioneered during the pandemic,
to enable wide engagement, having previously relied heavily on physical meetings and office visits.
The Group has continued running regular Global Live Events inviting the entire workforce to join these regular business updates
involving presentations from Executive and Non-Executive Directors who then answer questions which can be asked ‘live’ by
all attendees.
Non-Executive Directors also attend a variety of ‘virtual’ team meetings across all our regions, giving them the opportunity,
first-hand, to see our culture at work.
The establishment of the Group’s shadow Executive Committee (or Shadow Executive Board as it is known within the Group)
has given a new, fresh medium for the Board to hear views and ideas from a diverse group of people drawn from across
the business.
A number of our Non-Executive Directors have spoken and held informal interactive sessions at our internal network
programmes such as the Senior Female Leaders Network and our Global Live Events.
All these methods of engagement are supported by the reporting measures of our culture framework, including annual and pulse
survey data. Board members are also on Yammer, our widely adopted internal social networking tool, which means they can
keep pace with events across the organisation as they happen.
Our approach to customers is also a cornerstone of our culture; it is important that the Board understand and anticipate the
services needed by our customers, now and in the future.
The reporting produced via our internal data insight tools gives the Board a far more comprehensive view than it has ever
had about our customers’ recruitment needs across all markets. This includes details of roles, sectors and disciplines in high
demand, along with the ability to tailor those needs to clients and candidates. The measures from these tools are combined with
more traditional metrics such as net promoter scores and Google reviews. The Board, Executive Board and Chief Customer
Officer review all customer measures to ensure the Group’s strategy and investment decisions match our customer needs
and expectations.
For further details of the Board’s understanding of the Company’s stakeholders, including employees and customers and their
engagement with them, please see pages 61 to 65.
Annual Report and Accounts 2021 Our Culture
OUR CUSTOMERS
STAYING AHEAD – LEADING
OUR INDUSTRY
”
38
We can all remember that
moment of excitement when
we’re told ‘You got the job’.
The moment that means
we’re changing lives: for
our candidates and for our
clients. It fuels us to strive
towards the best in customer
experience, building long-term
relationships as careers grow
and teams thrive.
”
GOOGLE REVIEWS
Eamon Collins
Chief Customer
Officer
Nurturing long-term relationships with our
customers – both clients and candidates – is
at the heart of our long-term success. We start
building valuable relationships with our customers
from the moment we engage with them. That
could be as a client or a candidate and over the
lifetime of our connection with them they can be
both.
We work with some of the world’s most
recognisable brands, but we also have a huge
number of clients who are start-ups or small and
medium sized enterprises, Whatever the size or
sector, we offer them expertise to help build their
teams and grow their business. Increasingly, our
clients are also looking for our help in attracting
a more diverse candidate pool to help them
achieve their goals.
Using a range of innovative technology gives our
customers and our consultants the information
they need at the right time and in the right place,
meaning we can concentrate on the people
we’re helping – creating the right opportunity to
help them reach their potential.
We are constantly looking at ways to improve
our service, so we ask for and measure
feedback on how we’re delivering. We assess
customer excellence through a matrix of
performance indicators including repeat
business, specialism engagement, referrals, and
candidate and client satisfaction scores. That
gives us an aggregated customer score which
is regularly reported and our senior leaders are
targeted on continuously improving. Globally, we
have seen all those measures increase this year.
87% Candidate
Satisfaction Score
88% Client
Satisfaction Score
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 39
Sustainability
ACCREDITATIONS
Joanna Bonnett
Head of Sustainability and Group Treasury
The topic of sustainability has evolved rapidly during 2021.
The year has presented us with many opportunities and
challenges which we embraced. We hit the ground running by
signing the UN Global Compact and publishing our inaugural
sustainability report. As an organisation we set out a bold
ten-year sustainability vision, including ambitious targets. We
recognise the global workforce must adapt to combat global
climate change, and to assist with this transition we have
enhanced our offering to include recruitment and placement
of sustainability professionals. This represents a new business
opportunity for us, and we are excited to be at the forefront of
this industry as it becomes established.
Environmental – we have committed to become carbon net
zero with the ambition of becoming carbon positive by 2026,
and during 2021 we made significant inroads to achieving
this target. During 2022, we will investigate science-based
targets to ensure that our strategy to reduce emissions is in
line with the Paris Agreement goals. In 2021, we increased our
consumption of renewable energy and environmentally friendly
buildings by 46%, or in other words 53% of our office footprint.
With many other carbon reduction projects also in progress
– from transitioning to green car fleets to reducing business
travel – we are progressing at pace. We took time to evaluate
and enhance our systems. Importantly, these significantly
increase our reporting capability and transparency. We are
delighted to partner with Ecometrica, a SaaS system, to now
report on our scope one, two and three emissions.
Social – we have committed to change positively one million
lives and to be gender 50/50 in Senior Management, both by
2030. Social sustainability or social impact is at the core of
what we do as a business, and we are delighted to continue to
positively change peoples lives by creating opportunities locally
within the communities in which we operate.
Governance – over the coming pages you will find a
comprehensive summary of our greenhouse gas reporting and
task force on climate-related financial disclosures (TCFD), as
well as a few highlights from our social impact programmes
on giving back. During 2021, PageGroup continued to engage
externally on ESG related topics. For example, for the first
time, we engaged with CDP and are delighted to be assigned
a C rating and continue to honour our commitment to the ten
important principles of the Global Compact and the United
Nation’s Sustainable Development Goals (SDGs). We look
forward to strengthening our engagement with CDP, ISS, MSCI
and other sustainability rating agencies in 2022 and beyond.
In the very near future, I look forward to sharing with you our
2021 Sustainability Report.
FRANCE
GERMANY
SWITZERLAND
* At the date of publishing PageGroup was awaiting the release of the EcoVadis
2021 results.
DISCLOSURE INSIGHT ACTION
WE SUPPORT
Annual Report and Accounts 2021 40
ENVIRONMENT
Task Force on Climate related Financial Disclosures (TCFD)
PageGroup is committed to meeting the requirements for reporting in compliance with the Task Force for Climate related Financial
Disclosure (TCFD). TCFD consistent disclosures are designed to allow stakeholders to assess the possible impact of climate
change on the business as well as understand the steps we are taking to manage these risks. Disclosures consistent with each of
the TCFD recommendations and recommendation disclosures can be found on the following pages.
GOVERNANCE
A description of PageGroup’s governance, oversight and management of climate-
related risks and opportunities.
The plc Board provide ultimate oversight and governance over PageGroup, including the
Sustainability programme. The Board ensures the business balances risks and opportunities
across the entire spectrum of sustainability, focusing on where we can make a material
contribution to society. During 2021, sustainability was discussed at the Board twice.
This included presentations and in-depth Q&A sessions with the Head of Sustainability. In
addition, the Non-Executive Directors participated in one-to-one discussions with the Head
of Sustainability to ensure their broader expertise and insights were included in the overall
Sustainability function here at PageGroup. Furthermore, the Audit Committee balance
the risk of climate change and of the broader definition of sustainability against the wider
risks posed to the Group as set out on pages 53 to 58. And finally, for 2022 and beyond,
the Remuneration Committee added sustainability metrics to the CEO and CFO ESIP
remuneration as set out in the annual Sustainability Report and on page 96. This ensures
Executive Director attention is focused on making meaningful progress against the Group’s
sustainability targets.
The Executive Board as defined on pages 77 and 78, have day-to-day management of
PageGroup, including the Sustainability programme. The Executive Board ensures day-to-day
focus on sustainability at a local and regional level. During 2021, sustainability was discussed
at the Executive Board twice. This included presentations and in-depth Q&A sessions with
the Head of Sustainability. This work is strengthened by the Head of Sustainability working
alongside the Regional Managing Directors to ensure local teams are supported, globally. This
allows local and regional teams to transition to Net Zero within their line of responsibility as well
as drive significant progress in our social impact programmes.
PageGroup’s principal body for identifying, managing and addressing climate-related issues
is the Sustainability Committee. In 2020, PageGroup established a Sustainability Committee
responsible for the Sustainability@Page programme. The Committee is chaired by Kelvin
Stagg, Chief Financial Officer and Executive Director of PageGroup plc. Other members are
Joanna Bonnett (Head of Sustainability), Eamon Collins (Chief Customer Officer), Patrick
Hollard (Regional Managing Director LATAM), Gary James (Chief People Officer), and Olly
Watson (Chief Operating Officer). In January 2022, May Way Chan (Director, Malaysia) and
Samira Touam (Head of Internal Communications) will join the Sustainability Committee to
represent the voice of the employee. The Sustainability Committee reports to the plc Board
and the Executive Board on a bi-annual basis.
A description of climate-related risks and opportunities which PageGroup has
identified and their potential impact over the short, medium and long term.
We identify climate-related risks and opportunities within the following timelines:
Short-Term Risk (<1 year)
Immediate operational and strategic risks which require analysis and identification of mitigation
in the current or next financial reporting period. For instance, continued compliance with UK
legislation for disclosure of carbon emissions data and reporting in line with TCFD. Some
physical climate risks have already contributed to a reduction in revenue. For example, the
bushfires in Australia at the beginning of 2020 meant some of our employees along with wider
members of society within the region were unable to carry on business as usual for a period of
a few days.
CLIMATE STRATEGY
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 41
Sustainability
CLIMATE STRATEGY
Medium-Term Risk (1- 5 years)
RISK MANAGEMENT
Medium-term risks are those where mitigation actions are not required immediately or where there
is a requirement for a longer-term process to integrate the risk or opportunity management into the
business. Over the medium term, we foresee renewable energy becoming more accessible for our
offices in emerging markets. This means we will continue to transition office electricity and our car
fleet across to renewable energy and electric respectively. This implies there will be a small marginal
cost attached to transition. As has been the case in geographies such as Europe, as the accessibility
of technologies such as renewable electricity for offices becomes mainstream, we would predict the
pricing to stabilise in a similar fashion. We will continue to closely monitor the costs associated with
climate change as the topic evolves.
Long-Term Risk ( > 5 years)
Longer-term risks are by their nature harder to define. However, we see specific areas of risk and
opportunity impacting the Group over a longer timescale. Beyond 2025 it is likely that both the
frequency and severity of climate change-related events will continue to grow and require additional
planning for our operational teams, for instance in applying appropriate due diligence to new office
leases. We also see opportunity within the changing nature of our markets, as governments and
business respond to climate change and have begun work to integrate sustainability recruitment into
existing business streams.
See page 44 for further details on existing climate risks.
How are processes for identifying, assessing and managing climate-related risks integrated
into PageGroup’s overall risk management approach.
PageGroup has a Global management process which is operated by its senior management team
under the guidance and governance of the Audit Committee on behalf of the Board. Management has
defined the principal risks and risk appetite for PageGroup which has been agreed by the Board and
has put in place mitigating activities to manage our risks to an acceptable level. As well as ongoing
review, a bi-annual process considers the status of these risks, any new or emerging risks and reports
on these to the Audit Committee.
Currently the impact of climate change is viewed as an emerging risk. The effects of climate change
current and potential future exposure are dealt with within the current principal risks of Customer and
brands, People, and Global event.
Risk surrounding climate and the environment sits with the Group Head of Sustainability. The process
to identify and assess climate and environmental risk includes but is not limited to speaking with
management of our local businesses and considering external factors for relevance. The bi-annual
process, as defined above, includes that of climate change and the environment and is reviewed
for appropriateness by the Chair of the Sustainability Committee. We will continue to monitor the
appropriateness of this approach.
Within PageGroup’s risk management process climate risks are captured principally across three Risk categories.
STRATEGIC/
EMERGING
A strategic or emerging risk may require a shift in business model or transformation or change
within PageGroup. This risk is one that we do not currently foresee, but acknowledge that it
could occur over longer time horizons.
OPERATIONAL/
INHERENT RISKS
Inherent risks are those broadly identified and mitigated within the existing “business as usual”
planning. For instance, a disaster recovery plan for an office location affected by an extreme
weather event.
GLOBAL EVENT
(NEW PRINCIPAL RISK)
In 2020 we identified a new risk category, that of global events, where an external event
occurs that significantly disrupts business and world economies, requiring a response in
excess of ‘normal’ contingency planning. Many of the actions identified to mitigate against a
global event risk would also apply in the event of an increased likelihood of physical climate
risks. These may be location specific in nature but are increasingly seen across multiple locals
simultaneously. For instance, systems capability that means we are not tied to facilities either
for our people or the services that we deliver.
Annual Report and Accounts 2021 CLIMATE RISK
42
During 2020, we began the work of identifying specific climate risks as an emerging risk (see
2020 Annual Report and Accounts on page 43). During 2021, we have expanded on this
analysis to look at physical climate risk across our global property portfolio with our partners
Ecometrica. For further details on this work see the physical climate risk analysis on page
44. We have more to do, specifically around transition risk, i.e. those risks associated with
the transition from our current business model to one which is compatible with a low carbon
economy. Our expectation is that the need to review and report on these risks will continue
to escalate.
For further details refer to the principal climate risks and opportunities identified on pages
53 to 58.
The impact of climate-related risks and opportunities on the organisation’s
businesses, strategy, and financial planning.
PageGroup continues to integrate our sustainability initiatives into the wider business with
commitment to reduce our carbon emissions to Net Zero by 2026 and to build a meaningful
sustainability business within our operations by 2026. This work continues and has accelerated
through 2021, with the aim of rolling out globally as market conditions allow. Our Net Zero
strategy is to:
• Work with landlords to transition all electricity from traditional to renewable sources. To
date, we have transitioned 53% of our offices to green, at little to no incremental cost.
The residual 47% of offices these can be categorised into categories where landlords are
in control of the electricity supply and are not currently prepared to transition our power
supply to renewable or in jurisdictions, such as emerging markets, where renewable
energy is not readily available. For the former, we will continue to work with these landlords
or, when the lease expires, move to a more suitable office in line with other business
considerations. And for the latter, we will continue to engage with local energy suppliers,
eagerly awaiting a more suitable renewable offering. We expect the cost for such electricity
transition to be immaterial.
•
•
To transition our entire car fleet to electric. In late 2021, our UK business set up a pilot
project on electric cars including costing and adoptability by our employees. The findings are
yet to be published. Similar projects are scheduled for 2022 across our other geographies.
To reduce our business travel. The disruption of COVID has required our business to adopt
quicker ways of working. For example, conducting candidate and client interviews by
Microsoft Teams. This means, as a business, we will travel less, resulting in a decrease in
travel-related costs.
However, as a global organisation it is still important for us to connect with each other.
Meaning, once COVID travel disruption eases, we will continue to travel to enhance
productivity. It is likely such travel will be less frequent than before COVID, again resulting
in a reduction in cost. This should balance out any increase the travel industry passes on
to customers as a result of climate change.
•
Increase our revenue by building a meaningful global sustainability business. As this is an
emerging and rapidly changing profession, it is too early for us to quantify, with any great
certainty, the increase to revenue.
Any revenue associated with this is an opportunity for PageGroup over the longer-term as
a net increase.
We continue to expand our analysis and understanding of the impact on the business, including
physical risks, which will filter into our planning process for office facilities and lease arrangements.
Resilience of the organisation’s strategy, taking into consideration different climate-
related scenarios, including 1.5oC Paris Aligned Scenario and business as usual
emissions pathways.
During 2021, we have undertaken an initial assessment of physical climate risks (see page 44).
To a large degree, the risk to our physical locations is mitigated by the nature of the office
leased arrangements, existing home and remote working, and our disaster recovery plans
which are directly linked to our strategic objective of sustainable growth. Furthermore, our
proactive investment in establishing a meaningful sustainability business is linked to our
strategic objective of diversification and sustainable growth.
Further analysis is required to fully map transition risk for the business over comparable
timeframes which we plan to begin in 2022.
The Group started offsetting 100% of reported carbon emissions from 2020 onwards. We are
confident that the target of Net Zero emissions by 2026 for our own operations is achievable.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information
43
Sustainability
METRICS AND
TARGETS
Metrics used by PageGroup to assess climate-related risks and opportunities in line with its
strategy and risk management process.
PageGroup reports carbon emissions and energy consumption data in line with the Streamlined
Energy and Carbon Reporting (SECR) regulation requirements on page 46, including intensity metrics.
The results of our physical climate risk analysis are summarised on page 44.
We continue to improve both the breadth and quality of disclosure of climate-related metrics, for
instance we aim to undertake analysis of transition risk in our 2022 Annual Report.
Disclosure encompasses a number of formats, including our Annual Report and Accounts, our
ongoing disclosure to the CDP Climate programme and sustainability reporting.
Describe the targets used by the organisation to manage climate-related risks and
opportunities and performance against targets.
To become carbon net zero, with the ambition of becoming carbon positive by 2026. For many years,
PageGroup has reported scope 1 and scope 2 emissions, and since 2020 reported emissions have
been offset. In addition, from 2021 PageGroup has increased its reporting to include scope
3 emissions, which will also be offset.
As outlined above, the transition to renewable energy is a significant proportion of our Net Zero
target. And, PageGroup has committed to 100% renewable purchases where we are responsible
for electricity. For the 2020 annual assessment, the proportion of green offices was 8% which has
increased to 53% by the end of our 2021 assessment period. The Board will monitor and oversee
progress against these targets through reporting from the Sustainability Committee as well as regular
updates from the Head of Sustainability.
As set out in our 2020 Annual Report and Accounts, PageGroup is committed to establishing a
meaningful global sustainability business by 2026 (based on the percentage of net fees generated
from sustainability roles).
From 2022, as set out in the remuneration section on page 96, a proportion of the CEO and CFO
strategic KPIs are linked to achieving our sustainability targets.
For more information, including a comprehensive breakdown of the sustainability targets and our
pathway to Net Zero, please see our 2021 Sustainability Report.
PageGroup has undertaken an initial review of climate risks with details opposite. This information will inform the Climate Risk
narrative for the Annual Report and Accounts.
Annual Report and Accounts 2021 44
PHYSICAL CLIMATE
RISK
During 2021 PageGroup undertook an initial analysis of 140 office locations to assess physical
climate risk. The results of this analysis are summarised below.
Our analysis looked at nine risk indicators, covering changes in frequency and/or duration of
floods, drought, heatwaves, and exposure to risk from sea level rises. PageGroup’s offices
were also assessed for contextual country-based vulnerability to climate change in terms of
six key themes (food, water, health, ecosystem service, human habitat, and infrastructure) and
readiness to improve resilience. This took into consideration economic, governance and social
readiness, using the Notre Dame Global Adaptation Initiative (ND-GAIN) indicator.
The assessment was undertaken across a range of scenarios covering a baseline data set
(1981 - 2010), 1.5°C and 2°C Paris Aligned Scenarios and a ‘worst case’ scenario using 8.5°C.
The majority of PageGroup’s offices are located in countries where, generally, vulnerability to
climate change is relatively low and readiness to improve resilience in the context of climate
change is relatively high.
The climate risk analysis identified certain themes, for instance: significant increases in duration
and frequency of heatwaves across all offices. Changes in risks related to drought and flooding
are generally on a smaller scale and likely to impact over longer timescales.
Of the 140 offices assessed, 18 offices are located in areas below the level of projected sea
level rise and are classed as being at “Severe” risk for all scenarios/years, several of which are
country main offices including Sydney and Hong Kong. Across the timescales analysed, the
relative risk of sea level rise at different scenarios did not vary significantly, with more dramatic
differences not apparent until the end of this century implying at this stage, no change is
required to the PageGroup business-wide strategy. PageGroup will continue to monitor this risk
as outlined above on page 41.
Further detailed analysis is required to identify risks at these offices and to review plans for
mitigation. We look forward to undertaking this work and increase our transparency on climate
change in 2022 and beyond.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 45
Sustainability
GHG emissions
In accordance with the Companies (Directors’ Report) and Limited Liability Partnerships
(Energy and Carbon Report) Regulations 2018, PageGroup reports on all direct
greenhouse gas (GHG) emissions (relating to the combustion of fuel and the operation of
any facility); and indirect GHG emissions (through the purchase of electricity, heat, steam
or cooling).
As an office-based company, PageGroup has a smaller carbon footprint compared
to companies in other industries. However, as a global listed company, we recognise
our responsibility to reduce our greenhouse gas emissions and take urgent action
against climate change. Data for our sustainability reporting covers the period
1 October 2020 - 30 September 2021. For this assessment year, PageGroup has
partnered with Ecometrica, an external SaaS provider, to calculate and report its
greenhouse gas emissions. Whilst the COVID-19 pandemic had an impact on our
emissions, and to a lesser extent on the quality of some data, where data was incomplete,
we have extrapolated missing emissions rather than underestimate, to ensure all our
emissions were adequately covered.
All emissions have been calculated in compliance with the GHG Protocol Corporate
Reporting Standard using the newly implemented Sustainability Platform from Ecometrica,
which automatically selects the most geographically and temporally appropriate emission
factors and non-standard conversions (e.g. fuel efficiency, heat content) for each emission
source. Each of the emission factors and non-standard conversions are associated with
a level of uncertainty, assigned by the platform based on its associated level of scientific
certainty. All factors and assumptions come from recognised and reliable sources
including, but not limited to, the UN, BEIS, EPA, and IPCC.
Whilst we continue to gather some data in the same manner as previous years,
improvements in our data gathering have led to improvements in data quality. The
reduction of scope 2 market-based emissions by 22% is also testament to PageGroup’s
efforts to transition facilities to renewable energy. With the support of our new partner
Ecometrica, PageGroup have expanded our reporting scope to include business
travel, landfilled waste, water supply and treatment, homeworking, and transmission &
distribution (T&D) losses compared to previous years. It should therefore be noted that
there will be a transitional period whilst PageGroup continues to improve its data collection
processes as well as expanding our definition of scope 3 categories in future years.
The COVID-19 pandemic also led to a noticeable reduction in emissions relating to
business travel for the 2021 reporting year; to enhance transparency on this, we have
looked retrospectively. As 2019 was the peak year of business travel emissions we have
set 2019 as our baseline year. Therefore, our emissions in 2021 represent a reduction of
73% compared to 2020 and 92% compared to 2019 baseline year. This marked reduction
in travel-related emissions is primarily the result of the impacts of COVID-19 as well as our
commitment to reduce business travel.
2019
2020
2021
Business Travel (tCO2e)
3,315
1,045
280
For the first time we have reported emissions associated with landfilled waste. These
figures have been estimated by using a typical office intensity metric for waste and the
number of FTE who were working in the office during the assessment period. Additionally,
water consumption and associated carbon emissions have also been estimated by using
a typical office intensity metric for water and the number of FTE. Given we are an office-
based business, water treatment was assumed to be equal to water supply, allowing us to
calculate the emissions associated with water treatment as well.
Also, for the first time, homeworkers’ emissions have been included as this represents
good practice for environmental reporting standards and reflects PageGroup’s ambitions
to report in accordance with full scope 3 reporting. Ecometrica uses an in-house
developed homeworker model to estimate homeworker emissions that are geographically
and temporally specific.
In accordance with SECR standards, we are publishing a comparison only between the
present year and the previous one (2020).
Annual Report and Accounts 2021 46
PageGroup’s total emissions from scope 1, 2 and 3 are summarised in the table below. The figures reflect a 17% reduction in total
emissions, a decrease from 10,131 (tCO2e) in 2020 to 8,396 (tCO2e).
Absolute scope 1, 2 and 3 GHG emissions
Emissions Source (tCO2e)
Scope 11
Natural gas2
Company owned vehicles3
Scope 2
2020
2021
UK and
offshore
Global
(excluding
UK and
offshore)
Global
(including
UK and
offshore)
UK and
offshore
Global
(excluding
UK and
offshore)
Global
(including
UK and
offshore)
% change
in total
emissions
(vs previous
year)
56
94
-
649
56
743
52
50
-
546
52
596
-8%
-20%
Purchased electricity (market based)2
799
2,756
3,555
379
2,377
2,756
-22%
Scope 3
Business travel4
Homeworking5
T&D losses and upstream emissions
Waste/water6
109
309
160
298
936
1,434
723
1,807
1,045
1,743
883
2,105
20
487
192
78
260
1,671
1,027
1,258
280
2,158
1,219
1,336
-73%
24%
38%
-37%
Total tonnes of CO2e
1,826
8,305
10,131
1,258
7,138
8,396
-17%
GHG emissions intensity
GHG emissions intensity reduced by 25% to 1.12 Tonnes of CO2e per employee, as we have reduced our absolute emissions while
also increasing headcount.
Number of employees 7,8
Tonnes of CO2e per employee
1,182
1.54
5,601
1.48
6,783
1.49
1,268
0.99
6,210
1.15
7,478
1.129
10%
-25%
Energy consumption
Energy consumption from office electricity (scope 2) was 12,111 MWh, an increase of 31%, and driven by the return to our offices
globally. Despite increasing our energy consumption, our scope 2 emissions reduced by 22% due to the transition of offices to
renewable energy. We will continue to focus on transitioning our offices to renewable energy, as well as reducing our actual energy
consumption. Energy consumption from scope 1 and scope 3 relates to energy from fuel for cars and taxis. Both have decreased
due to a reduction in business travel.
Energy consumption (MWh) from scope 110
655
Energy consumption (MWh) from scope 211
2,465
Energy consumption (MWh) from scope 312
61
Total energy consumption (MWh)
3,181
2,377
6,794
631
9,802
3,032
9,259
692
456
2,375
7
2,022
9,736
122
2,478
12,111
129
12,983
2,838
11,880
14,718
-18%
31%
-81%
13%
1 2020 figures for scope 1 & 2 are restated (following improvements made to our data collection systems and a revision to fuel consumption of Company owned
vehicles).
2 Emissions derived from property energy consumption directly under the Company’s control have been calculated by using the majority of our offices globally (including
the entire UK business).
3 Emissions from fuel consumed by Company owned vehicles in 2021 have been calculated using the fuel consumed or, alternatively, the distance in km travelled by the
Company car fleets for the following countries: UK, Germany, Italy, France, Netherlands, Poland, Brazil, Spain, Mexico, Turkey and Switzerland.
4 PageGroup reported global emissions associated with business travel by air travel, rail, taxi, and bus.
5 Homeworkers’ emissions have been calculated based on Ecometrica homeworking model as per above.
6 Emissions associated with landfilled waste and water have been estimated as per above.
7 2020 headcount figure of 6,783 includes those furloughed.
8 2020 FTE is the total headcount for PageGroup as per September 2020. 2021 FTE is the total headcount for PageGroup as per September 2021.
9 Global (including UK and offshore) is a weighted average between UK and Global (excluding UK) based on FTE
10 Energy consumption from scope 1 relates to energy from fuel for Company vehicles.
11 Energy consumption from scope 2 related to electricity use in offices.
12 Energy consumption from scope 3 relates to energy from fuel for cars and taxis.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 47
Sustainability
SOCIAL IMPACT AND GIVING BACK
Social impact work ranges from giving our skills back as a recruiter, all the way through to fundraising and nurturing our charity
partnerships. Such work continues to be central to our culture and is within our DNA. Similar to last year, during 2021, ongoing COVID
restrictions affected our ability to host in-person activities. Where appropriate, we returned to in-person social impact work and fundraising
initiatives. Where this was not possible, we continued to host events virtually. This allowed us to continue giving back to society and the
communities in which we operate.
At PageGroup, we have made it our mission to support underprivileged groups into secure career paths, as we channel both knowledge
and resources into our charity partnerships. Aware that disadvantage is intergenerational, we have made a targeted effort to support
children and young people, as reflected by our work with the Kasipolis charity where we supported their ‘Life Skills’ programme,
successfully supporting a cohort into secure employment.
We are also mindful that peoples’ needs can often be more immediate, and we want to help in these times of hardship. In North America,
our Houston office donated 4,500 meals to underprivileged children via their local foodbank, whilst our team in Hong Kong fundraised
HK$10,000 for Feeding Hong Kong, amongst other considerable donations made by our teams in Dubai and Malaysia. We have also
done our best to assist our charity partners and fundraise to support their causes. In the UK, our teams cycled over 20,000km to
fundraise over £38k to support the charity, Back Up, and also separately volunteered to support the charity’s candidates as they venture
into new career paths.
Throughout 2021, we have made a concerted effort to give back to our local communities and support charity partnerships where we
can drive change and create a difference, a snapshot of which is featured below. For further information including a detailed report on our
social impact work, please refer to our 2021 Sustainability Report.
France
170kg of clothes donated
September 2021
Argentina
Interview practice for university students.
October 2021
Dubai
Donating food during the
Holy Month of Ramadan
April 2021
Hong Kong
Feeding Hong Kong raised
HK$10k
May 2021
UK
Riding 20,000km to raise over £38k
March 2021
North America
Donated 67 filled backpacks
August 2021
Australia
CV writing workshop for refugees
and migrants.
September 2021
North America
Donated 4,500 meals for underprivileged children.
November 2021
Annual Report and Accounts 2021 48
CASE STUDY
Social Impact in South Africa
Partnered with the Kasipolis charity
May 2021
The Life Skills Programme
Our Michael Page team in Johannesburg partnered with the Kasipolis
charity to support their ‘Life Skills, Work Readiness and Coding Training'
programme, volunteering both their time and donating financially in their
efforts to support young people into employment.
“
Thank you for being part of our Life Skills, Work
Readiness and Coding training programme.
The financial and time contribution was priceless.
Such contributions allow us to find, train and source
employment for young people who otherwise would
have been overlooked. We were able to train five
young people, in preparation for employment or
entrepreneurship and have employed two of them
in our organisation as entry level customer care
consultants. Thank you again for your involvement
and contribution. It is highly appreciated and valued.
“
Nomzamo Ramutla, Founding Director
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 49
Regional Perspectives
EMEA
ASIA PACIFIC
What are your priorities for 2022?
What are your priorities for 2022?
In EMEA, we are focused on our key growth areas of Technology
and Contracting, whilst maintaining the focus on productivity
across the region.
We are planning for continued growth in the German Interim
business, following the success of 2021. Additionally, we plan
to leverage the investments made in experienced hires and
technologies during 2020 and 2021.
How did you deliver against your 2021 priorities?
EMEA recovered well from Q2 onwards and overall gross
profit increased by 5.7% from £418.3m in 2019 to £432.0m in
2021. France declined 9% overall, with the Michael Page brand
recovering well, up 6% against 2019, whilst the Page Personnel
business has been slower to recover from the pandemic and
declined 16%. Southern Europe delivered a record year and
grew 14%.
Germany delivered a record year with growth of 31%, largely
driven by the Technology focused Interim business, which
grew 52%.
Benelux declined 1% and the Middle East and Africa, which
represents 2% of the region, was flat on 2019.
Headcount for the region increased by 469 (15.7%) in the year,
as we continued to invest as trading improved.
Operating profit increased 5.7% in constant currencies, from
£90.3m in 2019 to £93.4m. This was driven by the gross profit
growth and increased productivity versus 2019. This represents a
conversion rate of 21.6% (2019: 21.6%).
In 2022, our key focus areas include Contracting in China,
following the completion of the nationwide roll out in 2021,
together with our High Potential disciplines of Technology,
and Healthcare & Life Sciences.
We will continue to focus on our High Potential disciplines
as well as investing in our other high growth areas, including
India and South-East Asia, both of which delivered a record
year in 2021.
How did you deliver against your 2021 priorities?
The region delivered a record year, with gross profit growth of
14.7% against 2019. Mainland China grew 31% though Hong
Kong, which has been slower to recover than other countries in
the region, declined 11%.
Our Large, High Potential market of South East Asia grew by
32%, delivering a record year, with Singapore up 11%.
India grew significantly at 61%, with growth across all disciplines,
aided by the opening of the Bangalore office in Q4 2019. In
Japan, gross profit grew 25%, with our domestic Nikkei business
delivering growth of 16%.
Australia, where uncertainty around lockdowns remains and
varies by state, declined 7% against 2019, but made a strong
recovery versus 2020, up 43%.
Headcount across the region was up 324 (23.4%), with the
biggest increases in Australia, Greater China and India.
Operating profit grew more than 100% to £39.0m (2019: £19.8m),
at a conversion rate of 21.8% (2019: 12.1%).
Gross profit £m
Gross profit £m
2021
2020
2019
£432.0m
£319.4m
£418.3m
2021
2020
2019
£179.3m
£121.1m
£163.3m
Permanent to temporary ratio
Permanent to temporary ratio
30%
70%
PERMANENT
TEMPORARY
12%
88%
PERMANENT
TEMPORARY
Headcount
Headcount
2021
2020
2019
2,979
3,447
3,317
2021
2020
2019
1,385
1,709
1,679
Annual Report and Accounts 2021 50
AMERICAS
UK
What are your priorities for 2022?
What are your priorities for 2022?
In North America, we are focused on growing the Technology
discipline, our fastest growing discipline in 2021. We will also be
increasing our focus on Page Executive and Page Outsourcing.
In the UK, significant progress was made with the vaccine
roll out in 2021, though the emergence of new variants and
changing levels of restrictions created some uncertainty.
In Latin America, the outlook for 2022 is positive following a
challenging 2021, with political tensions and a slow vaccine roll
out. In 2022, our focus will be on the continued development
of our temporary business and investment in key growth areas
including Page Outsourcing.
How did you deliver against your 2021
priorities?
In the Americas, gross profit increased by 14.9% against 2019,
resulting in a record year for both North America and Latin
America.
In the US, one of our Large, High Potential markets, gross profit
was up 15% as trading conditions improved and we delivered
strong growth in newer disciplines, including Technology.
This followed a tough year in 2020, due to the closure of
construction sites for much of the year during the pandemic.
Latin America, another of our Large, High Potential markets,
grew 18%. Brazil was up 26%, Mexico was up 6% and the
other five countries grew 26% collectively.
Headcount across the region increased by 226 (19.6%),
with the main increases in the US, Brazil and Mexico.
Operating profit was up 8.4% to £19.2m (2019: £19.3m) in
constant currencies, a conversion rate of 13.8% (2019: 13.9%).
We will continue to focus on our strategic areas of Healthcare
& Life Sciences and Technology, where we have added
around 50 experienced fee earners in 2021. We will also
focus on returning to growth in the Temporary recruitment
business, and improving productivity levels across our
brands.
How did you deliver against your 2021
priorities?
UK gross profit decreased by 5.3% against 2019, to
£127.9m, with the business performance steadily improving
through the year. The region returned to growth in the
second half of the year, with Q3 and Q4 up 1.3% and
14.1% respectively.
The recovery was stronger in Michael Page which declined
1%, whilst Page Personnel was down 18% against 2019.
The headcount increased by a net 126 (10.7%), but remains
slightly down on 2019. This increase includes a significant
number of experienced hires, who have helped deliver record
productivity in the region in 2021.
Operating profit declined 2.0% to £16.9m (2019: £17.3m),
with a conversion rate of 13.2% (2019: 12.8%).
Gross profit £m
2021
2020
2019
£138.5m
£88.8m
£138.8m
Gross profit £m
2021
2020
2019
£127.9m
£80.9m
Gross profit £m
£135.1m
Permanent to temporary ratio
Permanent to temporary ratio
12%
88%
Headcount
2021
2020
2019
1,381
1,155
2020
2019
1,376
PERMANENT
TEMPORARY
25%
PERMANENT
TEMPORARY
75%
Headcount
2020
2019
2018
1,301
1,175
Headcount
2020
1,326
2019
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 51
Risk Management
Process
The Group recognises that the effective
management of risk is key to achieving
our objectives. Risk management is
therefore considered to be an integral part
of our process of business management
forming part of our strategy review, our
business plans and the delivery of our
daily activity.
To support our management in this
process, we have a Group-wide risk
review process which identifies the
principal risks that could impact our
business and determines the mitigating
actions required to ensure that these risks
are controlled to an acceptable level.
Within this process we assess all risks
that could have a significant impact on the
ability of the business to deliver its short-
term plans and medium and long-term
strategy. This includes reviewing for any
emerging risks.
Our agreed level of risk appetite,
approved by the Board, guides the level of
acceptable risk.
The process is supported by risk registers
that are maintained locally at country and
process level and consolidated twice a
year. We combine these with a top-down
review of risks conducted with senior
management that is summarised and
formally reviewed by the Executive Board
and the Audit Committee on behalf of
the Board.
In the intervening periods, the risks
associated with changes in either the
external environment or internal operations
are discussed as part of our ongoing
business reviews and are responded
to accordingly.
In key risk areas we also have established
compliance teams whose role it is to
ensure we comply with processes on an
ongoing basis. These are in IT security,
data regulation compliance, revenue
recognition, project management and
regional legal teams.
Our risk management process categorises
our principal risks into Strategic, Financial,
People and Operational.
The Board focuses on Strategic, People
and Financial risks. For these, we disclose
KPIs which we use to monitor the risk
impact, and the rewards and incentives
we apply to ensure effective management.
See strategic framework on page 7.
Our Operational risks are those that the
Board have agreed can be managed
by management on a day-to-day basis.
These are included within our risk registers
and are reviewed by the Board on an
exceptions basis.
The risks around cyber security and
compliance with data protection
legislation are such exceptions which
are currently reviewed at Board level on
an ongoing basis.
Our Internal Audit programme is aligned
to provide assurance on the controls that
mitigate the principal risks identified from
this process.
OUR RISK AND CONTROL FRAMEWORK
Controls
FUNCTIONS
Review
Business
Reviews/Internal
Control Checklists
Management
Policies and Procedures
Compliance Team
Risk Registers
Group Finance
Risk Management/
Group Financial Control
Audit Reports
Quarterly Updates
Internal Audit
Executive
Board
Board/Audit
Committee
Annual Report and Accounts 2021 52
Our risk appetite and net
risk levels
Recruitment is inherently sensitive
to the economic environment and
thus financially dependent on the
economic cycle.
PageGroup operates in this
environment with a low risk appetite,
seeking to mitigate its strategic risks,
maintain a strong financial position
and only taking the operational risks it
has the experience and capability to
manage.
Our growth model is organic, rolling out
Risk categories
the proven disciplines for our brands
to a wide geographic spread. We drive
this by ensuring consistency of model
and business culture across the Group.
We continue to focus on the services
we provide to our customers, clients
and candidates, ensuring quality
engagements in a manner that meets
both their needs and expectations
as well as our targets for process
efficiency.
We maintain a strong sales-driven,
meritocratic culture with a commitment
to operating in an ethical, legal and
sustainable manner.
We will always operate a conservative
financial position with a strong
balance sheet, reflecting the degree of
operational gearing inherent in
the business.
We monitor our net risk position against
our risk appetite and ensure where
possible management action is focused
on risks which we can appropriately
further mitigate.
This measured approach to taking risk
ensures we are best placed for success
globally.
STRATEGIC
PEOPLE
OPERATIONAL
FINANCIAL
People attraction,
development and
retention
Information systems
Cyber security
Fiscal and legal compliance
Financial management
and control
Data protection regulations
Macro-economic
exposure
Foreign exchange –
translation risk
Shift in business
model
Transformation and
change
Customer and brands
Global event
Net risk movement
RISK LEVEL
LOW
MEDIUM
HIGH
1. Shift in business model
2. Transformation and change
3. Customer and brands
4. Global event
5. People
6. Information systems
7. Cyber security
2020
/21
2020
/21
2020
/21
2020
/21
2021
2020
2020
/21
2020
/21
8. Fiscal and legal compliance
9. Financial management and control
2020
/21
2017
/18
2020
/21
10. Data protection regulations
2020
2021
11. Macro-economic exposure
12. Foreign exchange translation
PageGroup Risk Appetite
2021
2020
LOW
MEDIUM
2020
/21
HIGH
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 53
Principal Risks and Uncertainties
The Board’s view of direction of travel of gross risk:
Similar to prior year
Lower than prior year
Increased since prior year
The COVID-19 pandemic continued to impact Global economies in 2021 but the recruitment market was strong during the period and
continued to be resilient even with the emergence of the Omicron variant. Client demand has been strong, particularly in technology and
healthcare & life sciences and our focus has been to find appropriately skilled candidates.
The evolving impact of COVID is reflected in each of our principal risks.
Emerging risks
In addition to our principal risks we also identify any emerging risks which could have a significant impact on the Group’s activities. In our
2021 review we continue to recognise climate change as such a risk. Having reassessed the potential impact we continue to incorporate
specific elements of the risks of climate change within our current principal risks. We will continue to monitor this position and to determine
current appropriate mitigating actions. Climate change is currently reflected in economic, people, legal compliance, Customer and brand,
and Global event risks.
Principal Risks
STRATEGIC
1. Shift in business model
NATURE OF RISK
MITIGATING ACTIONS
• We fail to take advantage of technology
• We actively monitor developments in new technologies and their use in the recruitment sector.
opportunities to support our drive on productivity,
and customer and candidate experience.
• The emergence of new technology platforms and
providers offering HR solutions and consulting
may lead to increased competition and pressure
on margin which may adversely affect the Group’s
results if we are unable to respond effectively.
SIGNIFICANT INFLUENCING FACTORS
• COVID has accelerated the use of digital technology
in recruitment, changing the way clients and
candidates engage.
• Further acceleration of digital, automation and
artificial intelligence will create opportunities to use
technology in new ways to improve our productivity
and address our customers needs.
Net risk level stable
• We have established an innovation infrastructure with executive governance and regional
innovation groups. Opportunities are evaluated, those that meet our criteria are developed
and piloted through an innovations lab. The focus is on driving productivity and the provision
of new services.
• Building on our Salesforce platform to accelerate innovation and change opportunity.
• We partner with large media providers such as LinkedIn and Facebook to ensure that
we use media effectively to enhance our value to clients. All consultants are trained in utilising
the benefits of social media in their day-to-day activity.
• Through our focused Competitive Edge programme, we train our consultants in the use of the
new technologies to enable them to resource candidates for our clients at an overall cost that
they cannot match.
• Our Global IT capability is based around standard applications and processes, and an
outsourced service model with leading edge providers that has enabled us to respond
effectively to the changes resulting from COVID and will continue to enable us to do so.
• Investment in automation products and data driven AI solutions to drive productivity by
reducing labour intensive activities.
2. Transformation and change
NATURE OF RISK
• Evolving capabilities and business environment mean that we need
to continuously improve the services we deliver and how we deliver
them. In some cases, this requires a step change in capability.
• Poor management of our Global programmes to achieve this could
lead to excessive costs or poor delivery impacting service levels and
anticipated benefits.
SIGNIFICANT INFLUENCING FACTORS
• Customer Connect has now been rolled out to over 90% of our
consultants. Significantly reducing the implementation risk. The
remaining rollout to LATAM could however significantly disrupt the
rest of the business.
• The business has commenced global programmes to implement
an infrastructure to support our Page Outsourcing business, to
more effectively manage the processes for temp placements
and more efficiently and effectively manage our front-end admin
activities through use of our share service centre model.
Net risk level stable
MITIGATING ACTIONS
Customer Connect
• Our Customer Connect implementation is due to be completed by
mid 2022.
• We have supported our teams with transition plans and ongoing support
processes protecting our delivery capability.
• We have maintained a robust testing programme including regression testing,
impact on current users and we continue to monitor the benefits derived from
the implementation.
For all new Global programmes
• We have in place a governance process which includes a dedicated steering
team which reports to Executive management.
• We have dedicated programme personnel drafted from our business
technology, local manage and support teams.
• We have a well-established programme management process which is
periodically audited by our internal audit team.
• Regular updates are provided to the executive on the status of programme
activity.
Annual Report and Accounts 2021 54
3. Customer and brands
NATURE OF RISK
MITIGATING ACTIONS
• As the way clients and candidates source
information changes, the awareness of the
PageGroup brands and services could deteriorate.
• The relevance of the client and candidate
engagement we offer could impact our success in
acquiring, engaging and nurturing new clients and
candidates.
• The quality of the services we provide to both
clients and candidates could have a significant
impact on how our brand is viewed.
• We continue to see the reputational impact one-
off events can quickly have with the adoption
of social media. Any event that could cause
reputational damage is a risk to the Group, such
as a failure to comply with regulations, or loss or
theft of confidential data anywhere in our operating
environment.
SIGNIFICANT INFLUENCING FACTORS
• The COVID pandemic has accelerated a shift in our
recruitment process to an online digital format.
• Activity levels across disciplines and industry
sectors has shifted.
• Expectations of business in relation to
Environmental, Social and Governance has
accelerated, in all three areas.
• The upturn of economic activity in the second half
of FY21 has led to a shortage of suitably qualified
candidates across the majority of our markets.
Net risk level stable
4. Global event
NATURE OF RISK
• We have created an Executive role of Chief Customer Officer to both underline the
importance which PageGroup sees in addressing customer needs and facilitates the
development and delivery of capabilities required to continue to meet their needs as
they evolve.
• Our vision has been enhanced with the addition of a customer metric with a target
to achieve, and the addition of 5 ‘ambitions’, one of which relates to customer,
one to inclusion and one to sustainability, which will drive our focus on brands and
customers.
• We have in place a Global Completely Customer framework. Within this all MDs have
objectives to drive performance with defined Key Performance Measures. We have
supported this with an internal programme of activities to drive customer fluency.
• With the completely customer programme we have a Global standard measure on
client and candidate satisfaction and net promoter scores for each region supported
with the development of action plans to drive improvements where required.
Additionally we continue to focus on Google review and Glassdoor on how our visible
reputation scores.
• We continue working with our Global strategic partnerships (LinkedIn, Seek, WeChat)
to engage with potential significant new entrants (e.g. Google for jobs); and monitor
developments in technology in other business segments.
• Diversification of media programmes using data for targeting on ‘traditional’ digital
channels (Google, Facebook, Yahoo, Bing, Baidu) in conjunction with establishing
a team to review our approach to data management. We have signed with a Global
media agency Merkle and use a single global ad tech platform which supports both
effectiveness and efficiency, and enables innovation in seeking out candidates.
• The use of Salesforce marketing suite and tools such as Thunderhead to enable
segmentation and personalised activity programmes which are fully integrated to
Salesforce based Customer Connect programme as it is rolled out across the Group.
• An innovations pipeline process that enables ongoing development of our proposition
from idea generation, piloting to industrialisation which has become more effective at
filtering innovations earlier allowing focus on higher quality ideas.
• Policies and training on the most appropriate use of social media both in the
recruitment processes and in general use to meet regulatory requirements and to
adhere to good common practices.
• Tried and tested crisis management response processes at Group and Regional
level. These include experienced senior personnel from all functions who can respond
quickly.
MITIGATING ACTIONS
• An external event occurs that significantly disrupts
• We have a Group-led Crisis Management policy and process which covers the Group
business and world economies requiring a response
in excess of ‘normal’ contingency planning.
SIGNIFICANT INFLUENCING FACTOR
• Over the past two decades we have experienced
the global financial crisis and the COVID-19 global
pandemic, both major unpredictable incidents
that have had immediate and severe long-lasting
impacts.
• The geopolitical environment continues to be
sensitive to tensions between the west and Russia,
US, Japan and China and the activities of North
Korea.
Net risk level stable
in the event of unpredictable events. This lays out the processes to be followed
in developing appropriate responses. The Crisis Management process has been
cascaded to all Group and Regional business leaders. Our Crisis Management
processes have been further reinforced by learning from the COVID-19 response.
• We maintain a strong ethical culture which ensures that whatever situation the
business faces, the focus is to protect our employees, clients and candidates as well
as ensuring that we fulfil our broader social responsibilities.
• A conservative financial strategy which maintains a strong balance sheet and healthy
cash balances and facilities.
• Experienced and agile management team and structure regionally based and in a
good position to liaise with Group and local management.
• A systems capability that means we are not tied to facilities either for our people or
the services that we deliver.
• A flexible workforce that can be deployed to focus on any areas of opportunity and be
appropriately scaled.
• Critical suppliers are chosen for their resilience capabilities and regular checks are
conducted to ensure these are being maintained.
• Within any event there are opportunities. Our people are trained to identify these and
to develop offerings in support of business. In doing so we ensure that we behave in
an ethical manner.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 55
STRATEGIC REPORT
Principal Risks and Uncertainties
PEOPLE
5. People
NATURE OF RISK
Attraction
MITIGATING ACTIONS
Actions in response to the COVID pandemic
• Operations – unable to recruit people with the right
potential.
• We continue to monitor and manage the impact of COVID-19 on our people globally,
with Group Policy and regional and local management following external guidance.
• A lack of inclusion limits our recruitment pool.
• We have developed and applied a principles based approach to flexible working,
• Limited numbers of people to recruit with the right levels
supporting management in the implementation at a local level.
of experience.
• Ability to offer the flexibility or working practices new
employees demand.
Retention
• Ability to retain our high performers due to pressures on
remuneration.
• We do not provide an environment, working practices
and processes that suit our people.
• A lack of diversity impacts on our ability to
retain talent.
• A lack of opportunity impacts our ability to
retain talent.
Development
• Operations – we do not maximise the potential of
our people.
• Operational Support – we fail to provide
development opportunities.
Attrition
• We do not manage leavers efficiently.
• Leavers have a detrimental impact on our reputation.
SIGNIFICANT INFLUENCING FACTORS
• The COVID pandemic has and continues to change the
way people work, expectations of their work environment
and how leadership needs to engage and manage
activity.
• The upswing in economic activity has increased the
demand for good people and could put pressure
on remuneration.
• We use Yammer for ongoing communication and provide training via our digital learning
platform to support this new way of working. This will ensure we continue to effectively
manage our people, provide them with the support they need and retain our PageGroup
culture.
• We continue to strengthen our teams with the appointment of individuals with previous
recruitment experience to support us in those areas of growth opportunity.
• We have further enhanced development of our diversity and inclusion programmes
globally: Openpage, Unity@page ensure we can recruit and retain from all groups of
society as our workplace is attractive and inclusive to all. We have continued to develop
our focus on ESG through our work on culture and engagement. Shadow Boards
have been set up at Executive Director and country levels to gain support for how the
business develops from as wide a range of backgrounds as possible
• We have reviewed our benefits offering to ensure they are competitive and in line with
markets. A salary review has been commissioned with external experts in the light of
wage inflation market by market. We have also updated our maternity leave policy on a
regional basis. The review was in response to feedback from our ‘Have Your Say’ survey.
• We continue to promote the Group Purpose around ‘changing lives’ which we also
cascade through our Page employee value proposition.
• Our performance management process via Talent Toolbox drives clarity and focus on
objectives and behaviours.
• We take a global Talent, Succession and Development approach to ensure a strong
talent pipeline and address any gaps at MD and above. We continue to invest in
leadership development programmes: Page leadership excellence, Global Director
Academy and Executive leadership development.
• We are expanding our capabilities via our new Page Learning digital platform. New
blended learning programmes came onstream last year to target amongst other things
improving on-boarding and speed to success and will be further enhanced to support all
employees through each stage of their development life cycle.
• We conducted the ‘Have Your Say’ survey this year and continue to gain feedback
from our people in structured programmes both for our new starts and also for leavers.
Actions are in place to improve areas on which we could do better.
• We have developed a PageGroup alumni programme and website to stay in touch with
Net risk level stable
our past employees.
Annual Report and Accounts 2021 56
OPERATIONAL
6. Information systems
NATURE OF RISK
MITIGATING ACTIONS
Change
• The business does not appropriately control programme and
Change
• New requests for programmes and projects are approved and prioritised
project delivery.
through a global demand process before commencement.
• Strategic Business Technology led programmes do not deliver
• Strategic programmes’ objectives are agreed with and reported on to the
business objective stated.
Executive Board.
• Poorly controlled changes are made or changes are poorly
• A Global PMO process sets out controls for the delivery of programmes
executed which impacts on service levels.
and projects.
Services
• A disruption of service due to a failure of our internal
• Technical changes to critical systems managed in line with defined
processes to protect the integrity and stability of these systems.
processes or procedures or due to a failure of or at our third
party service providers.
Services
• Single Points of Failure for critical systems are reviewed on a regular
• Business Continuity and Disaster Recovery is not sufficient to
basis and mitigating actions put in place.
allow business Operations to continue.
Data
• Systems are implemented without the necessary data
• Appropriate support agreements and service levels are in place with
vendors.
• For issues that occur, incident management will follow a defined process to
protection controls.
minimise disruption to business users.
SIGNIFICANT INFLUENCING FACTOR
• PageGroup has established global standard processes, with
a move to an outsourced services model utilising world class
systems and suppliers.
• COVID has permanently changed the way business users
operate requiring a capability to support complete flexibility of
location.
• We have defined our third party management policies and processes
with dedicated service managers, supported by the Senior Leadership
Team and a dedicated IT procurement function.
• Recovery time and recovery point objectives for critical systems are
agreed with the business and tested.
• We have provided our business users across the Group with a full remote
access capability to systems, which supports flexible working and has
enabled us to continue to operate effectively throughout the COVID pandemic.
Data
• Business Technology processes are compliant with data regulation
requirements.
Net risk level decreased
• New systems are designed in compliance with data regulation legislation.
7. Cyber security
NATURE OF RISK
MITIGATING ACTIONS
Loss of data or systems due to the actions of:
• Malicious Outsiders – targeted attack of PageGroup systems.
Our dedicated Information Security team continues to mature and
identify areas for continued improvement.
• Malicious Insiders – assisted or generated attack by a
disgruntled employee or contractor.
• Accidental Outsiders – errors caused by our suppliers.
• Accidental Insiders – successful Phishing, Social Engineering,
Business Email Compromise.
Our 2020 Security Improvement Plan has remained on track. We have
launched several additional defences that continue to reduce the opportunity
of a cyber-attack. They include:
• Cyber insurance in our Policy.
• Warning Banners on all emails to identify potential phishing attacks, plus
1000 higher risk users (HR, Finance, Execs, PAs) have an advanced anti-
phishing email defence with an ability to auto-report malicious activity.
SIGNIFICANT INFLUENCING FACTORS
• An ‘anti-impersonation’ tool that prevents email compromise attacks has
• The move to using public Cloud services for business-critical
activities, our significant email use, and extensive use of
social media have increased the Group’s exposure to external
threats.
• Cyber-attacks continue to increase globally. These could
impact not just ourselves but also our key suppliers.
• The most common route into an organisations’ network is
via phishing emails (over 90%). As Page relies heavily on the
use of email, and it is normal to receive emails from unknown
senders, our exposure to phishing remains high.
• Business Email Compromise (BEC), whereby an executive’s
email is compromised and used to authorise payments or
extract confidential information has also increased since the
pandemic.
• Patching of our global systems to ensure we are securing our
systems from ever-changing attacks remains a challenge.
Net risk level stable
been implemented.
• Active Web Monitoring identifies malicious website registrations attempting
to use the PageGroup brand or where a website is actively mimicking
ourselves to falsely attract clients and candidates away from our business.
The process now in place allows us have them taken down.
• We have updated and enhanced our Multi Factor Authentication
methodologies to continue to ensure secure access to our systems.
• Password Quality Enhancements, ensuring users select very secure
passwords.
• Implementation of a new security and privacy management tool to identify
and manage risks more cohesively across our global business.
• Better governed vulnerability and patch management process including
new reporting dashboards.
• Fine-tuning of our SOC Alerts in recognition of our current changes in
working practices
• Ongoing audit and remediation of any gaps identified are in place.
• Implementation of ISO 27001 Certification – a globally recognised and
externally assessed InfoSec Framework.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 57
STRATEGIC REPORT
Principal Risks and Uncertainties
8. Fiscal and legal compliance
NATURE OF RISK
MITIGATING ACTIONS
• The Group operates in a large number of jurisdictions that have varying legal, tax
• On material legal or fiscal changes there is a Group led
and compliance requirements.
• Any non-compliance with client contract requirements and legislation or regulatory
requirements could have an adverse effect on the Group’s brands or financial
results.
SIGNIFICANT INFLUENCING FACTORS
• Commercial drive in temp and contracting business and Group progress into
Page Outsourcing present both new and country specific legal requirements.
• New and evolving legislation will continue to impact how we operate specifically
in areas such as ESG, fiscal requirements and changes in working practices as a
result of COVID.
approach to regulatory and legislation policies, supported
by regional internal legal and tax resources utilising external
advisors as appropriate.
• Group Treasury have supported regional management in
addressing banking, funding and the requirements of sanctions.
• We have set up a central review of our ESG activity to ensure
we maintain appropriate reporting and support our activities in
delivering on ESG compliance requirements.
• Our Group Tax team co-ordinate with regional management and
tax advisors on the Group’s tax matters.
See financial management risk for financial compliance activities,
and Data risk for compliance with data regulations.
Net risk level stable
9. Financial management control
NATURE OF RISK
MITIGATING ACTIONS
• Failure to maintain adequate financial and
management processes and controls could lead to
poor quality management decisions, resulting in the
Group not achieving its financial targets
or in errors in the Group’s financial reporting.
• Failure to standardise systems and processes could
lead to excessive costs within the finance function.
• We maintain strong financial policies and procedures with Group, Regional and local finance
teams to ensure these policies as well as local statutory requirements are adhered to. The
Group Finance function reviews monthly management account submissions.
• Shared Service Centres, under a global reporting structure, have increased resilience and
introduced greater levels of process standardisation and improved controls. Global process
owners oversee the maintenance of our finance processes.
• We have an established global finance system enabling standardisation on best practice and
SIGNIFICANT INFLUENCING FACTORS
• UK SOX implementation is due within the next two
years. Whilst the specifics of whether this will be
a legal requirement or guidance has not yet been
finalised there will be an impact on the processes
that manage risk and controls.
Net risk level stable
10. Data protection regulations
NATURE OF RISK
global visibility of finance transactions.
• There are compliance teams located in each region that support local, Regional and
Group management in ensuring revenues are appropriately recognised as well as a Global
transactional process risk and controls team who support management to ensure appropriate
controls are in place. As UK SOX requirements become clearer this team would take on any
requirements for validation of the effectiveness of controls.
• The SSCs have improved opportunities for career paths for finance professionals allowing
hiring and retention of higher calibre personnel.
• We have Risk and Controls Registers which are owned and embedded within the businesses.
Risk reporting is aggregated globally and reviewed every 6 months by the Executive and the
Audit Committee.
MITIGATING ACTIONS
• Personal data breaches are committed by our employees and/or third party vendors.
• Data requests cannot be fulfilled within deadlines imposed by regulators.
• Our interpretation of data protection laws may prove to be incorrect following clarification by
• We maintain a regional approach to ensuring legal
requirements are effectively met with specialist
resources used to support internal management.
the courts and/or data protection regulators.
• Customers may take issue with our business processes because their interpretation of data
protection law differs from ours.
• Regulator guidance on regulatory action against companies including imposition of fines for
data protection breaches is evolving and may result in more severe penalties.
SIGNIFICANT INFLUENCING FACTORS
• Data protection regulations in the UK and Europe are now well established. European data
protection regulators (including the UK regulator) are actively following up on complaints of
breaches of the GDPR.
• Stricter data protection regulations are being introduced in other regions including Latin
America, US states and China.
• As more of our systems support has been outsourced our reliance on third parties to have
processes in place to effectively process our data has increased.
• We have an ongoing staff data protection training
programme, (including ePrivacy) delivered via our
global training platform. Data management training is
compulsory.
• We have regional teams, including legal support, in
place where required who respond to data requests
and data related queries including from regulators.
• Our contracts with third parties ensure that
responsibilities around data management are clear
and understood and our third party management
processes have been appropriately aligned.
• We also have a Crisis Management policy to address
external data breaches, including informing authorities
and customers.
See Cyber Security risk for mitigating activities regarding
data protection loss due to system attacks.
Net risk level increased
Annual Report and Accounts 2021 58
FINANCIAL
11. Macro-economic exposure
NATURE OF RISK
MITIGATING ACTIONS
• Our recruitment activity is driven largely by economic performance and levels of
business confidence. Businesses are less likely to need new hires and employees
are less likely to move jobs when they do not have confidence in the economy,
leading to reduced recruitment activity.
• A substantial proportion of the Group’s profit arises from fees that are contingent
upon the successful placement of a candidate or in the case of Temp completion
of activity. In these cases, if the client cancels the assignment at any stage in the
process, the Group receives no remuneration.
• During period of rapid economic increasing demand for candidates put pressure on
processes and resource levels.
SIGNIFICANT INFLUENCING FACTOR
• COVID-19 continues to have an impact on the economic outlook with the ongoing
battle between variants and vaccines. Forecasts have been changing frequently,
both in terms of the scale of the downturn and period to recovery.
• We have however, seen significant upturn in performance during 2021.
• Brexit continues to bring uncertainty on economic growth particularly for the UK,
but also for Europe.
• Relations between the US and Greater China, however, remain fragile and made
worse by the COVID-19 pandemic. Whilst in Europe tensions with Russia over
Ukraine continue.
• Supply chain issues persist, significantly impacting energy prices which are having
a knock on effect on inflation.
• The recovery has created pressure on labour supply, both quantity and skills.
• There are some industry sectors that have benefited from the impact of the
COVID-19 pandemic. Examples are online retailers, cloud service providers, food
retailers, healthcare, and the tech sector.
• We use our geographical spread to invest in countries
and regions where growth is highest and manage
resource levels in areas that are not growing.
• Continue to develop our brands of Page Executive,
Michael Page, Page Personnel and Page Outsourcing
targeted to the needs of geographies.
• Further develop our disciplines to take opportunities in
growing sectors and those that recover the quickest.
• In those markets built on international business we
continue our drive to shift our client base to more
domestic.
• We have maintained and continue to increase the
proportion of our cost structure that is variable so
that we can respond quickly, both during periods of
contraction and rapid growth, for example supporting
our consultants with technology, our moves to shared
service centres and IT to a global service based
model.
• We continue to balance permanent and temporary/
contracting recruitment mix in line with business levels
in each market. The temporary business tends to be
more resilient in times of economic downturn.
• We protect key resources in the short term so that we
can capitalise when the economies recover.
Net risk level decreased
12. Foreign exchange
NATURE OF RISK
MITIGATING ACTIONS
• Material changes in the strength of Sterling against the Group’s main functional
• Our Group Treasury function reviews our cash
currencies significantly affects the Group’s reported Sterling profits in the financial
statements.
position on a regular basis.
• Repatriation of funds and conversion back to Sterling
• The main functional currencies in addition to Sterling are the Euro, US and
protects against any significant Sterling recovery.
Australian Dollars.
SIGNIFICANT INFLUENCING FACTORS
• We do not hedge the translation of our profits.
• Our communications focus on ensuring the market
correctly adjusts for any impact.
• COVID-19 continues to bring uncertainty to the Global environment whilst the
longer-term impact of Brexit on the UK relative to Europe and consequent exchange
rate movement is still unclear.
• We have little cross-border trading activity, so the
impact on transactions is limited to intercompany
items.
• As we continue to expand successfully our overseas operations, our translation
exposure to Sterling increases.
Net risk level stable
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 59
Principal Risks and Uncertainties
Going concern
The Board has undertaken a review of the
Group’s forecasts and associated risks
and sensitivities, considering the expected
impact of COVID-19 on trading in the period
from the date of approval of the financial
statements to March 2023.
The Group had £154.0m of cash as at
31 December 2021, with no debt except
for IFRS 16 lease liabilities of £102.0m.
Debt facilities relevant to the review period
comprise a committed £30m BBVA RCF
(May 2023 maturity), an uncommitted UK
trade debtor discounting facility (up to
£50m depending on debtor levels) and
an uncommitted £20m UK bank overdraft
facility.
Throughout 2021, activity levels picked
up in most of the Group’s markets and
the cost control and cash preservation
methods used in 2020 were not repeated.
However, due to the pandemic reductions
in travel and entertaining expenses remain.
There continues to be a high degree of
global macro-economic uncertainty, as
COVID-19 remains a significant issue
and restrictions remain in a number of
countries across the Group.
However, given the analysis performed,
there are no plausible downside
scenarios that we believe would cause
an issue. As a result, given the strength
of performance in the year, the level
of cash in the business and Group’s
borrowing facilities, the geographical
and discipline diversification, limited
concentration risk, as well as the
ability to manage the cost base, the
Board has concluded that the Group
has adequate resources to continue
in operational existence for the period
through to March 2023.
VIABILITY STATEMENT
Assessing the prospects of
the Company
Our strategy and the key risks we
face are described on pages 13
to 18 and 53 to 60. A full business
forecasting process is performed on a
quarterly basis, with a full budget for the
following year created during October
and November, being presented to the
Board in December. The Board reviews
the Group’s strategy and approves an
annual Group budget. Performance is
then monitored by the Board through
the review of monthly reports showing
comparisons of results against budget,
quarterly forecasts and the prior year,
with explanations provided for significant
variances. Discussion around strategy
is undertaken by the Board in its normal
course of business, as well as at an
annual dedicated strategy day.
We also prepare longer-term projections
which drive our strategic plan. These are
typically three years. Our strategic plan
provides a clear vision for the Group,
aligns the Group to one clear culture,
provides clarity on investment priorities,
branding, belief in achievable goals,
and clarity on the goals for our financial
vision.
Annual Report and Accounts 2021 60
The period over which we
confirm longer-term viability
Within the context of the above, in
accordance with provision 31 of the
UK Corporate Governance Code, the
Board has assessed the viability of
the Group.
Given the inherent uncertainty
involved, the period over which the
Directors consider it possible to form
a reasonable expectation as to the
Group’s longer-term viability is the
three-year period to 31 December
2024. This period has been selected as
it is short enough to present the Board
and, therefore, users of the Annual
Report with a reasonable degree of
confidence, whilst still providing an
appropriate longer-term outlook. Whilst
the Board has no reason to believe
the Group will not be viable over a
longer period, the Board has taken
into account the short-term visibility
inherent in a recruitment business with
a permanent recruitment bias.
Stress testing
The forecasting and budgeting process
is also supported by scenarios that
encompass a broad range of potential
outcomes. These scenarios are
designed to explore the resilience
of the Group to the potential impact
of the significant risks as set out on
pages 53 to 60, or a combination of
those risks. A range of scenarios were
considered, including cyber incidents,
disintermediation by way of innovation,
changes in technology, movements in
foreign exchange rates, and a global
downturn. For each individual scenario,
we modelled a 15% decline in gross
profit, recovering to be flat in Year
3. We also modelled a worst-case
scenario, where the combination of
factors led to a decline in gross profit
in line with the COVID-19 pandemic for
the first two years, and then flat in year
3, compounded by further additional
factors as well as a 10% strengthening
of Sterling. We have assumed that,
as in the past, as downside risks
materialise our headcount will flex
through natural attrition in line with
the drop in gross profit, such that the
impact on operating profit is partially
mitigated.
As seen in the global financial crisis in
2009, as well as during the pandemic,
working capital from both permanent
and temporary recruitment unwinds,
assessment of the principal risks and
uncertainties facing the Company and
the stress-testing based assessment of
the Company’s prospects, all of which
are described above, the Directors
have a reasonable expectation that
the Company will be able to continue
in operation and meet its liabilities as
they fall due over the period to 31
December 2024. However, we operate
in an environment of limited visibility,
dependent upon confidence in the
global marketplace. Further weakness
in the macro-economic outlook may
cause us to adapt our strategy during
the three-year period in response,
leading to a re-evaluation of additional
risks involved which might impact the
business model.
Compliance with Section 414
of the Companies Act 2006
We have complied with the
requirements under the provisions of
the Companies Act 2006 contained
in Sections 414CA and 414CB of the
Companies Act 2006. The relevant
references can be found below.
providing the Group with a sizeable
cash buffer.
The scenarios were designed
to be severe, but plausible and
were modelled individually and in
combination. In each case, the Group
remained viable throughout. However,
it is considered extremely unlikely that
this combination of events would ever
occur. Controls are also in place, where
possible, to mitigate the impact of these
scenarios and these are described on
pages 53 to 60.
Various events may also alert the Main
and Executive Boards to a potential
threat to viability, for example, macro-
events drive the recruitment industry,
a drop in GDP in a particular country
may lead to a reduction in gross profit
growth rates.
We consider that this stress-testing
based assessment of the Group’s
prospects is reasonable in the
circumstances given the inherent
uncertainty involved.
Confirmation of longer-term
viability
The Directors confirm that their
assessment of the principal risks
and uncertainties facing the Group
was robust. Based upon the robust
Description
Business Model
Page
5
Non-financial Key Performance Indicators
22 to 24
Description and management of principal risk and
impact of business activity
Employees
51 to 58
27 to 38
Social and community
27 to 38 and 47 to 48
Respect for human rights
27 to 38 and 47 to 48
Anti-corruption and anti-bribery
83 and 92
Environmental matters
27 and 40 to 46
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 61
Stakeholder Engagement
The following describes how the
Directors have had regard to the
matters set out in section 172(1)
of the Companies Act 2006. This
section of the Strategic Report
and the pages to which it refers,
comprises the Company’s section
172(1) statement together with
the statements set out earlier in
this report as to how the Directors
have engaged with employees
and had regard to their interests
and how the Directors have had
regard to the Company’s business
relationships with customers,
suppliers and other external
stakeholders.
The Board understands that
providing global recruitment
services touches many lives
and that it is important to have
a framework in place to capture
stakeholder feedback. The
Board use this feedback to
help shape its decision making
and future strategy. The various
considerations surrounding our key
stakeholders including engagement
methods, decision making, their
importance to our operating model
together with the Board’s oversight,
are summarised in this section of
the Strategic Report.
The Board consider the risks
that are, or may be in the future,
associated with each of the
stakeholder groups as part of the
overall principal risk assessment
which is set out on pages 53 to 58.
WHO ARE OUR STAKEHOLDERS?
In 2021 there were no changes in respect of whom the Board considers to be our key stakeholders.
Our stakeholders are the same across our businesses, brands, and geographies.
EMPLOYEES
Want to work in a supportive,
inclusive culture where they
experience real opportunities
for development and a long and
rewarding career.
SUPPLIERS
Seek strong
and enduring
partnerships
based on fair
terms.
Our
Stakeholders
INVESTORS
Look for
investment
growth
and seek
confidence their
investment is
under sound
stewardship.
COMMUNITIES
& GOVERNMENT
Need businesses that have
a positive impact on society.
CUSTOMERS
Rely on us to provide
world class specialist
recruitment services and
solutions to help drive
their business and
careers forward.
WHY ARE OUR STAKEHOLDERS IMPORTANT TO OUR BUSINESS MODEL?
EMPLOYEES
INVESTORS
CUSTOMERS
As a recruitment
company, our biggest
asset is our people;
put simply, they are our
business. It is their skills
that we strive to retain
and develop and that we
rely on for our success.
Without developing and
retaining our talent we
could not hope to drive
long-term value for all
stakeholders associated
with the Group.
Attracting long-
term investment
and new investors
is the foundation
of a successful
company’s long-term
sustainability. Our
investors are unlikely
to stay with us if our
approach to other
stakeholder groups
is not well thought
through and ethically
sound.
Our business can
only thrive if we solve
complex recruitment
challenges for clients
and offer tailored
specialist recruitment
services and advice
to work seekers.
We aim to be world
class in our sector, so
that demand for our
services is maintained
and grows.
COMMUNITIES
& GOVERNMENT
SUPPLIERS
Maintaining a reputation
as a responsible
business is of the upmost
importance to the Board
and this means adding
value to the communities
we operate within and
acting as governments
expect and require.
Anything less detracts
from our business and
is contrary to our culture
and values.
We are a recruitment
specialist, but to be the
best we need to partner
with businesses with similar
standards and ambitions
in areas outside our core
expertise. The Board not
only seeks partnerships
to instil confidence in
those areas outside of
recruitment but in our view,
partnering with reputable
suppliers, gives us a
competitive edge.
Annual Report and Accounts 2021 62
EMPLOYEES
Engagement
Performance information provided
to Directors
Who engages?
Global live events/townhalls inc. Q&A
sessions for global workforce
Directors attend management meetings
around the regions either in person
or virtually
Attendance at Page internal network
events
Yammer
Surveys – in 2021 Group-wide “Have
Your Say Survey”, pulse surveys and
results of senior female leadership
survey
Biannual Culture & Engagement
sessions including KPI measures and
the D&I review
Information on Executive Shadow
Board activities
The engagement activities are
undertaken by all Directors, whether
they are Executive or Non-Executive
The performance information outlined
is provided to all Directors
The Global live townhalls involve an
update on key business issues and
often involve an interactive session with
a Non-Executive Director
Speak up helpline review
Gender pay gap reporting
In 2021 several Non-Executive
Directors presented at our female
senior leadership sessions
Engagement and outcome
Feedback
Directors were clear from
engagement throughout the year that
employees were feeling the strain of
the restraint that was shown in 2020
on pay and reward. Inflation data was
provided for all markets.
Decision
The Board determined it was
appropriate to return to paying
annual bonuses and global cost
of living increases were awarded
across the business to address the
inflationary squeeze on employees
take home pay.
Link to Strategy
Retaining and rewarding our
employees is vital if we are to offer
world class services. Retention risk is
an increasing risk for both ourselves,
and our clients.
Feedback
Working flexibly is important to our
people and it was clear on the global
townhall events that a recurring
theme was our need to roll-out more
laptops to facilitate this.
Decision
Directors supported the investment
in increased use of laptops and kept
employees up to date via global
live townhalls and Yammer on the
progress of a roll-out particularly in
light of supply pressures.
Link to Strategy
Maximising productivity means
we must ensure our employees
have the tools to work smartly and
flexibly.
Feedback
Through our continuous listening
programme, we heard that our
employees felt we ought to review our
family friendly policies to ensure these
were not only legally compliant but
more competitive.
Decision
Family friendly policies have been
reviewed and improved in markets
where we felt that we needed to
increase our offering.
Link to Strategy
Supporting working parents is key to
being an employer of choice in our
sector.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 63
Stakeholder Engagement
INVESTORS
Engagement
Performance information provided to
Directors
Who engages?
Investor Roadshows
Investor Conferences
Individual investor meetings
Capital markets event 2021
Engagement call with proxy agencies
AGM
Engagement and outcome
Feedback
Our investors were understanding
of the need to suspend dividend
payments in 2020. However, through
engagement across our shareholder
base in 2021 it was apparent that
there was an expectation that we
return to sustainable capital returns as
soon as possible.
Investor Relations Reports including
roadshow feedback
Proxy ratings and reports (ISS, Glass
Lewis, IVIS and PIRC)
A shared responsibility for all Directors.
However, our experience is that investors
more commonly request one to one
sessions with our executive management,
Chair and Chairs of our Committees.
Decision
The Board considered the
appropriate level of dividends to
declare and declared an interim
dividend of 4.70 pence per share
and special dividend of 26.71 pence
per share, together totalling £100m,
at the 2021 half year.
Link to Strategy
Producing meaningful returns on
investment for shareholders makes
the Group attractive for continued
investment of existing shareholders
and attracts new investors, making
the Group overall a sustainable,
viable business.
Feedback
Through engagement with the
investment community in 2021 it
became apparent that our investors
were interested in us confirming
our strategy for the business post-
pandemic.
Decision
The Board decided to hold a capital
markets event in December 2021
detailing the key strategic themes
such as the focus on high potential
disciplines, our Completely Customer
programme and our investment in
Page Outsourcing.
Link to Strategy
The event was designed to give an
as up to date picture as possible
on our current strategic thinking to
enable investors to base their future
decisions.
CASE STUDY
In 2020, like many of its peers the Group announced the temporary suspension of its dividend policy. This was against a backdrop
of unprecedented global economic disruption and significant near term uncertainty caused by the pandemic. The intention being to
preserve liquidity and profitability. By mid-year in 2021 the Board were aware that liquidity was strong, all our people had returned to
full pay and the business had repaid furlough in the UK. It was therefore imperative to consider reinstating capital returns to ensure
shareholders were not unfairly prejudiced. Board Directors considered this and were provided with information on market expectations
including consensus for dividend per share and our competitors’ return rates, together with details of the Group’s cash position, other
capital allocation options and trading. The Group declared a dividend of 4.70 pence per share and a special dividend of 26.71 pence
per share, together totalling £100m, at the 2021 half year, and is proposing a final dividend of 10.30 pence per share for 2021.
Annual Report and Accounts 2021 64
CUSTOMERS
Engagement
Client relationship
meetings
Market deep dive
sessions
Performance information
provided to Directors
Net Promoter Scores
Google review surveys – clients
and candidates
Quarterly Board reports on
Information Security and Data
Protection.
Who engages?
Engagement on frontline customer experience is carried out by
Executive Directors and senior management.
Non-Executive Directors review the customer data outlined
and invite the Chief Customer Officer to the Board to discuss
customer views, trends, and needs. Additionally, throughout the
year all Directors attend deep-dive sessions on markets, where
customers are a key component of the discussion.
Keeping systems and data safe is a key responsibility of the
Group and therefore a shared Board matter. Information
security and data protection, including key metrics regarding
performance, are discussed quarterly at Board meetings.
Engagement and outcome
Feedback
Customer experience is taken from
a variety of sources; to ensure
consistency it became clear we
should apply a global standard
across our business, markets and
divisions.
Decision
Introduced in 2021, across all senior
management, a single performance
indicator customer rating composed
of weighted scores of key measures
such as repeat business, specialism
engagement, referrals, and candidate
and client satisfaction scores.
Link to strategy
A consistent, well recognised
score measured across our
operational business supports our
drive for customer excellence, and
avoids our business becoming too
transactional in nature.
Feedback
Recruitment services should
go beyond simply identifying
job opportunities and matching
candidates to clients. Customers
want advice on recruitment models,
market trends, compensation and
benefits, most suitable locations
for roles, interviewing optimisation
processes, vetting etc.
Decision
Directors understand the need to evolve
our services and this has led to the
investment in our key technologies such
as Page Insights, Customer Connect
and investment in other business
models such as Page Outsourcing.
Link to strategy
Our sector is highly competitive.
It is vital that our services remain
relevant and address client and
customer needs.
Engaging to
change lives, create opportunity
and reach potential
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information
65
Stakeholder Engagement
COMMUNITIES & GOVERNMENT
Engagement
Performance information provided to
Directors
Who engages?
Involvement in ESG activities such
as voluntary and charitable work
Sustainability report and metrics
Engagement, on the whole, is delegated to
Executive Directors and senior management.
Annual consideration of tax strategy
Attendance at COP 26
Engagement with regulators,
government departments and tax
authorities
Directors are advised of all material litigation
and/or significant regulatory engagement
via reporting from the General Counsel &
Company Secretary
The Board having oversight responsibilities
discharged via reporting provided on the
engagement activities.
Engagement and outcome
Feedback
It became clear to
us that we were
not doing enough
to articulate our
sustainability/
ESG strategy
and needed
to do more to
demonstrate our
commitment.
Decision
We have assessed our risk to the environment and our business model. For
further details please see pages 51 to 60. We also dedicated more Board time
to ESG matters, have established a Sustainability Committee and published
our inaugural Sustainability Report in 2021 (accessed at www.page.com).
From 2022 we have committed to 5% of the variable pay awards available
to Executive Directors being attributable to performance in respect of our
following key sustainability goals.
GENDER EQUALITY | DECENT WORK AND ECONOMIC GROWTH
REDUCED INEQUALITIES | CLIMATE ACTION
Link to Strategy
Demonstrating
real action on
sustainability and
ESG strategy is
a virtuous circle:
realising our goals will
impact positively all
stakeholders and in
turn this will drive the
business forward in
years to come.
SUPPLIERS
Engagement
Performance information
provided to Directors
Who engages?
Supplier on-boarding process
Relationship meetings with key
suppliers
Infrastructure suppliers’ event
UK payment practices
reporting made available
Group Procurement and Business Technology teams take the
lead on direct engagement.
Provision of modern slavery
KPIs to Board on annual
basis
Board review engagement output, especially around information
security supplier matters and modern slavery risks, and
determine any actions required.
Engagement and outcome
Feedback
We are increasingly being
asked about our strategy
to address modern slavery
risks and suppliers need to
understand our expectations.
Decision
Directors sought more assurance outside of the UK
business surrounding mitigation actions and requested
more engagement in smaller markets, resulting in a
modern slavery playbook being issued across the world
and an annual certification of compliance from local
businesses.
Link to Strategy
Supporting decent
work is central to our
culture and values and
is a cornerstone of our
sustainability strategy.
Annual Report and Accounts 2021 66
Review of the Year
Financial summary
2021
2020
Change
Revenue
Gross profit
Operating profit
Profit before tax
Basic earnings per share
Diluted earnings per share
Total dividend per share (excl. special dividend)
Total dividend per share (incl. special dividend)
£1,643.7m
£1,304.8m
£877.7m
£168.5m
£166.6m
37.2p
37.0p
15.00p
41.71p
£610.2m
£17.0m
£15.5m
-1.8p
-1.8p
-
-
+26.0%
+43.8%
>100%
>100%
>100%
>100%
*At constant currency – all growth rates in constant currency at prior year rates unless otherwise stated
Change
CC*
+30.2%
+49.1%
>100%
At constant exchange rates, Group
revenue increased 30.2% to £1,643.7m
(2020: £1,304.8m) and gross profit
increased 49.1% to £877.7m
(2020: £610.2m) for the year ended
31 December 2021. Gross profit per
fee earner increased 43.7% to £157.2k
(2020: £113.3k).
The Group’s revenue mix between
permanent and temporary placements
was 42:58 (2020: 34:66) and for gross
profit was 77:23 (2020: 72:28), as
the recovery in 2021 was driven by
permanent recruitment. Revenue from
temporary placements comprises
the salaries of those placed, together
with the margin charged. This margin
on temporary placements increased
to 21.0% in 2021 (2020: 20.1%) and
Regional reviews
we saw an improvement in our perm
margin as well. Overall, pricing has
improved, as a result of candidate
shortages in the majority of our markets.
In our Large, High Potential markets
category, which now represent 38% of
the Group, gross profit increased 60%
in constant currencies to £332.5m,
outperforming the rest of the Group.
Total Group headcount increased
by 1,144 in the year to 7,838. This
comprised a net increase of 937 fee
earners (+18.2%) and an increase
of 207 operational support staff
(+13.4%). This increase in our fee
earner headcount was driven by
continued investment as trading
conditions improved. We added c. 700
experienced fee earners to the Group
during the year, in addition to the c.
400 experienced fee earners that joined
in 2020. This additional headcount
was primarily into our strategic areas
of investment, as well as those areas
which have been more resilient during
the COVID-19 pandemic. As a result
of this increase in net fee earner
headcount, our fee earner to operational
support staff ratio improved to 78:22
(2020: 77:23).
In total, administrative expenses
increased 19.6% to £709.2m (2020:
£593.2m). The Group’s operating profit
from trading activities totalled £168.5m
(2020: £17.0m), an increase of
over 100%.
Gross profit
Year-on-year
EMEA
Asia Pacific
Americas
UK
Total
Permanent
Temporary
% of Group
2021 (£m)
2020 (£m)
%
Reported
CC
%
49%
20%
16%
15%
100%
77%
23%
432.0
179.3
138.5
127.9
877.7
676.1
201.6
319.4
121.1
88.8
80.9
+35.3%
+40.3%
+48.0%
+53.1%
+56.0%
+66.9%
+58.0%
+58.0%
610.2
+43.8%
+49.1%
436.7
173.5
+54.8%
+60.7%
+16.2%
+19.8%
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 67
Review of the Year
Europe, Middle East and Africa (EMEA)
EMEA
(£m)
Growth rates
2021
432.0
93.4
21.6%
2020
319.4
30.6
9.6%
Reported
CC
+35.3%
>100%
+40.3%
>100%
(49% of Group in 2021)
Gross profit
Operating profit
Conversion rate (%)
Market presence
EMEA is the Group’s largest region,
contributing 49% of the Group’s gross
profit in the year. With operations in
17 countries, PageGroup has a strong
presence in the majority of EMEA markets
and is the clear leader in specialist
permanent recruitment in the two largest,
France and Germany, and many of the
others. Across the region, permanent
placements accounted for 70% and
temporary placements 30% of gross profit.
The region includes four of our Large,
Proven markets, France, Spain, Italy and
the Netherlands, across which there is a
broad range of competition. EMEA also
includes Germany, one of the Group’s
Large, High Potential markets, which has
low penetration rates (markets where less
than 30% of recruitment is outsourced)
and significant growth potential, particularly
in temporary recruitment. In addition, there
are markets such as Poland, Turkey and
Africa, which are less developed, with
limited competition, but are increasingly
looking for professional recruitment
services.
Performance
In constant currencies, revenue grew
25.5% to £869.6m (2020: £717.3m) and
gross profit grew 40.3% to £432.0m
(2020: £319.4m).
Trading conditions improved significantly
during the year as vaccines were
successfully rolled out across the region
and lockdown restrictions eased. France,
the Group’s second largest market, grew
27%. Conditions were tougher in Page
Personnel, which represents around 60%
of France. Germany, our third largest
market, grew 48% for the year, with
strong growth and record performances
across all brands. In our other European
markets, Benelux grew 32% and Southern
Europe, which was severely impacted by
the pandemic in 2020, was up 60%, with
Italy and Spain increasing 52% and 64%,
respectively. The Middle East and Africa,
which represented 3% of the region,
grew 46%.
2021 operating profit increased over 100%
to £93.4m (2020: £30.6m), returning to the
2019 conversion rate of 21.6%. The region
was the most resilient to the COVID-19
pandemic, with conditions improving
significantly through 2021. Headcount
across the region increased by 468
(+15.7%) during the year, to 3,447 at the
end of 2021 (2020: 2,979, 2019: 3,317),
taking it above the pre-pandemic levels.
Asia Pacific
Asia Pacific
(£m)
Growth rates
(20% of Group in 2021)
Gross profit
Operating profit
Conversion rate (%)
2021
179.3
39.0
21.8%
2020
121.1
3.8
3.1%
Reported
CC
+48.0%
>100%
+53.1%
>100%
Market presence
Asia Pacific represented 20% of the
Group’s gross profit in 2021, with 80% of
the region being Asia and 20% Australia.
Other than in the financial centres of Hong
Kong, Singapore and Tokyo, the Asian
market is generally highly under-developed
and offers attractive opportunities in both
international and domestic markets at
good conversion rates. Two of our Large,
High Potential markets, Greater China
and South East Asia, are in this region.
With a highly experienced management
team, approaching 1,500 staff and limited
competition, the size of the opportunity
in Asia is significant. Across Asia, driven
by cultural attitudes towards white collar
temporary recruitment, permanent
placements accounted for 88% and
temporary placements only 12% of gross
profit, well below the Group average
of 23%.
Australia, one of our Large, Proven
markets, is a mature, well-developed and
highly competitive recruitment market.
PageGroup has a meaningful presence
in permanent recruitment in the majority
of the professional disciplines and major
cities in Australia. Page Personnel has a
growing presence and significant potential
to expand and grow market share.
Performance
In Asia Pacific, in constant currencies,
revenue grew 34.3% to £282.0m (2020:
£216.0m) and gross profit grew 53.1% to
£179.3m (2020: £121.1m).
In Asia, representing 16% of the Group,
gross profit increased 57% on 2020.
Greater China increased 57% with
Mainland China up 58% and Hong Kong
up 65%. South East Asia was up 70%,
with Singapore up 55%. India delivered a
record year, up 87%, aided by the opening
of our Bangalore office in Q4 2019. Japan
was up 37% and delivered a record year.
Australia grew 43%, despite having seen
continued uncertainty around lockdowns,
which varied significantly by state.
Operating profit increased more than 100%
in constant currency to £39.0m (2020:
£3.8m), with the conversion rate increasing
significantly to 21.8% (2020: 3.1%). This
was driven by the significant improvement
in productivity, up 45% in the year, together
with the improvement in trading conditions.
Overall, the region had the highest
conversion rate in the Group in 2021.
Headcount across the region increased
324 (23.4%) in the year, ending the year
at 1,709 (2020: 1,385, 2019: 1,679).
Annual Report and Accounts 2021 68
The Americas
Americas
(£m)
Growth rates
(16% of Group in 2021)
Gross profit
Operating profit
Conversion rate (%)
2021
138.5
19.2
13.8%
2020
88.8
-7.0
-7.9%
Reported
CC
+56.0%
>100%
+66.9%
>100%
Market presence
The Americas represented 16% of
the Group’s gross profit in 2021, with
North America representing 62% of
the region and Latin America, 38%.
The US and Latin America are two of
the Large, High Potential markets in
our growth strategy. The US, where
we have eight offices, has a well-
developed recruitment industry, but in
many disciplines, especially technical,
there is limited national competition
of any scale. PageGroup’s breadth
of professional specialisms and
geographic reach is uncommon and
provides a competitive advantage.
Latin America is a highly under-
developed region, where PageGroup
enjoys the market leading position
with around 800 employees in seven
countries. There are few international
competitors and none with regional
scale. Across the Americas, permanent
placements accounted for 88% of gross
profit and temporary placements 12%.
Performance
In constant currencies revenue
increased by 53.9% to £220.7m (2020:
£154.3m) while gross profit increased
66.9% to £138.5m (2020: £88.8m).
In North America, gross profit increased
by 62%. The US grew 64% as trading
conditions improved and we delivered
growth in newer disciplines, including
Technology. We also saw good
growth in Construction, following the
re-opening of construction sites during
the year.
Latin America recovered well from the
pandemic after a particularly challenging
2020, and delivered a record year.
Gross profit was up 77%, with Brazil up
73%, Mexico up 81% and the other five
countries increasing 76% collectively.
As a result of this improvement in
trading conditions, operating profit
increased to £19.2m (2020: -£7.0m),
with a conversion rate of 13.8% (2020:
-7.9%), despite significant investment in
the 2 Large, High Potential geographic
markets in the region. Headcount across
the region increased by 226 (+19.6%)
in 2021 to 1,381 (2020: 1,155, 2019:
1,376).
United Kingdom
UK
(15% of Group in 2020)
Gross profit
Operating profit
Conversion rate (%)
Market presence
The UK represented 15% of the Group’s
gross profit in 2021, operating from
26 offices covering all major cities. It
is a mature, highly competitive and
sophisticated market with the majority
of vacant positions being outsourced
to recruitment firms. PageGroup
has a market leading presence in
permanent recruitment across the UK
and a growing presence in temporary
recruitment. In the UK, permanent
placements accounted for 75% and
temporary placements 25% of
gross profit.
The UK business operates under all four
of our brands, with representation in
13 specialist disciplines via the Michael
Page brand. There remain opportunities
to launch new discipline businesses
under the lower salary-level Page
(£m)
Growth rate
2021
127.9
16.9
13.2%
2020
80.9
-10.3
-12.8%
+58.0%
>100%
Operating profit for the year increased
to £16.9m (2020: -£10.3m), with the
conversion rate improving to 13.2%
(2020: -12.8%). The 2021 conversion
rate was negatively impacted by the
repayment of furlough to HMRC during
the year, excluding this item, the 2021
conversion rate would have been 15.8%.
Headcount increased 126 (+10.7%) in
the year to 1,301 at the end of December
2021 (2020: 1,175, 2019: 1,326),
marginally behind the pre-pandemic level.
Personnel brand, which represented
22% of UK gross profit.
Performance
In the UK, revenue increased 24.9%
from £217.3m in 2020 to £271.5m,
whilst gross profit increased 58.0% from
£80.9m in 2020 to £127.9m.
COVID-19 continued to impact trading
during the first half of 2021, with
restrictions in place through most of Q1
and Q2. Trading conditions then began
improving steadily, with the region
returning to growth in Q3 compared
to 2019. Overall, the UK grew 58%
with Michael Page up 63% and Page
Personnel up 46%. Trading conditions
were tougher in Page Personnel, which
operates at lower salary levels, but
encouragingly they returned to growth
in Q4 compared to 2019.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 69
Review of the Year
Operating profit and
conversion rates
The Group’s organic growth model and
profit-based team bonus ensures cost
control remains tight. Approximately
three-quarters of costs were employee
related, including wages, bonuses, share-
based long-term incentives, and training
& relocation costs. Depreciation and
amortisation for the year totalled £53.7m
(2020: £61.8m).
The Group’s conversion rate for the year
increased from 2.8% in 2020 to 19.2%.
The conversion rate improved significantly
as the year progressed, with a H2
conversion rate of 22.0% compared with
a H1 conversion rate of 15.9%. This was
due to the sharp increase in productivity
and gross profit.
Conversion rates improved in all of the
Group’s regions. Asia Pacific was the
Group’s most profitable region, with
a conversion rate of 21.8%, which
represents a considerable increase
on 2020. EMEA also remained highly
profitable, with conditions improving
towards the end of the year and the
conversion rate of 21.6% was consistent
with the pre-pandemic level in 2019.
The UK and the Americas were most
impacted by the COVID-19 pandemic,
though their conversion rates recovered
well in 2021 to 13.2% and 13.8%
respectively, above their pre-pandemic
levels in 2019.
A net interest charge of £1.9m (2020:
£1.5m) was primarily due to an IFRS
16 interest charge of £1.3m. Excluding
IFRS 16, the net interest charge of £0.6m
reflected the continued low interest
rate environment and borrowing
facility charges.
Earnings per share and
dividends
In 2021, basic and diluted earnings per
share increased to 37.2p and 37.0p
respectively (2020: -1.8p), as a result of
the increase in profit due to the improved
economic conditions.
The Group’s strategy is to operate a
policy of financing the activities and
development of the Group from our
retained earnings and to maintain a strong
balance sheet position. The first use of
our cash is to satisfy our operational and
investment requirements and to hedge
our liabilities under the Group’s share
plans. We then review our liquidity over
and above these requirements to make
returns to shareholders, firstly by way of
an ordinary dividend.
Our policy is to grow this ordinary
dividend over the course of the economic
cycle, in line with our long-term growth
rate. We believe this will enable us to
sustain the level of ordinary dividend
payments during a downturn as well as to
increase 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 or
share buybacks.
Having suspended our dividend policy
in 2020 during the pandemic, in 2021
we announced the resumption of our
dividend policy. In October 2021, we paid
an interim dividend of 4.70 pence per
share, an increase of 9.3%, being 4.5%
for 2020 and 4.5% for 2021, over the
2019 interim dividend. In addition, in line
with our policy of returning surplus capital
to shareholders, we also paid a special
dividend of 26.71 pence per share. Taking
both dividends together, this amounted to
a cash return to shareholders of £100.2m.
In line with the continued improvement
in trading conditions, a final dividend of
10.30p (2019: 0.00p) per ordinary share
is proposed. When taken together with
the interim dividend of 4.70p (2019:
4.30p) per ordinary share, this is an
increase in the total dividend for the
year of 9.6% over the proposed 2019
ordinary dividends to 15.00p per ordinary
share. The proposed final dividend,
which amounts to £32.9m, will be paid
on 17 June 2022 to shareholders on
the register as at 20 May 2022, subject
to shareholder approval at the Annual
General Meeting on 31 May 2022.
We will continue to monitor our cash
position in 2022 and will make returns to
shareholders in line with the above policy.
Cash flow and balance sheet
Cash flow in the year was strong, with
£186.3m (2020: £169.0m) generated
from operations. The closing cash
balance was £154.0m at 31 December
2021 (2020: £166.0m). The slight
decrease on 2020 despite the stronger
trading conditions is due primarily to the
payment of interim and special dividends
in the year, totalling £100.2m. Given the
recovery in the Group’s trading and strong
cash position, the Board decided to repay
the UK Government furlough income of
£3.4m in April 2021.
PageGroup 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 May 2023,
with a total drawable amount of £30m.
We have agreed a covenant waiver to the
end of the agreement on this facility to
ensure we retain access to these funds
should they be required. Neither of these
facilities were in use as at 31 December.
These facilities are used on an ad hoc
basis to fund any major Group GBP cash
outflows.
Income tax paid in the year was
£37.0m (2020: £31.7m) and net
capital expenditure was £25.7m (2020:
£21.7m). The expenditure increased
due to increased spend on Customer
Connect, our new operating system, as
well as investment into laptops and new
IT equipment to support the fee earner
headcount additions made during the
year.
An interim and special dividend of
£100.2m was paid in 2021 (2020: £0.0m).
The significantly higher share price in
2021 meant that there was an increase in
cash receipts from share option exercises,
with £16.4m in 2021, compared to £0.4m
in 2020. In 2021, £10.4m (2020: £14.4m)
was also spent on the purchase of shares
by the Employee Benefit Trust to satisfy
future committed obligations under our
employee share plans.
The most significant item in our balance
sheet was trade receivables, which
amounted to £254.6m at 31 December
2021 (2020: £186.1m), comprising
permanent fees invoiced and salaries and
fees invoiced in the temporary placement
business, but not yet paid. Day’s sales in
debtors marginally increased due to the
increase in the debtor book as a result of
the improvement in trading conditions,
particularly within permanent recruitment
which tends to have a longer collection
period.
Foreign exchange
Foreign exchange impacted the Group’s
results for the year negatively, decreasing
revenue by c. £55m, gross profit by c.
£32m and operating profit by c. £8m.
Taxation
The tax charge for the year was £48.3m
(2020: £21.3m). This represented
an effective tax rate of 29.0% (2020:
136.9%). The rate is higher than the
Annual Report and Accounts 2021 70
Cash flow waterfall 2021
400
360
320
280
240
200
£m
160
120
80
40
42.9
37.6
229.2
25.7
16.4
100.2
10.4
(40.1)
37.0
3.8
154.0
166.0
Dec 2020
EBITDA
Working
Capital
Tax and net
interest
Net
Capex
Share options
exercised
Dividends
paid
EBT share
purchases
Exchange
Dec 2021
Lease
Liability
repayments
Cash
Increase
Decrease
effective UK rate for the calendar year
of 19% (2020: 19%) principally due
to the impact of higher tax rates in
overseas countries and to a lesser
extent, disallowable expenditure. There
are some countries in which the tax rate
is lower than the UK, but the impact is
small either because the countries are
not significant contributors to Group
profit, or the tax rate difference is not
significant. The decrease in the effective
tax rate from the prior year is a result of
the significant one-off derecognition of
deferred tax assets in 2020.
In 2021, the tax rate was impacted
primarily by higher tax in overseas
countries (+7.8%), derecognition
of losses and other tax attributes
of (+3.3%), prior year adjustments
of (-2.9%), tax on share-based
payments (-0.1%) and other permanent
differences (+1.5%), principally
employee related expenditure and
entertainment expenses.
The tax charge for the year reflects
the Group’s tax strategy, which
is aligned to business goals. It is
PageGroup’s policy to pay its fair
share of taxes in the countries in
which it operates and deal with its
tax affairs in a straightforward, open
and honest manner. The Group’s tax
strategy is set out in detail on our
website in the Investor section under
“Responsibilities”.
Share options and share
repurchases
At the beginning of 2021 the Group
had 11.4m share options outstanding,
of which 5.3m had vested, but had
not been exercised. During the year,
options were granted over 2.0m shares
under the Group’s share option plans.
Options were exercised over 3.6m
shares, generating £16.4m in cash,
and options lapsed over 2.0m shares.
At the end of 2021, options remained
outstanding over 7.9m shares, of
which 3.8m had vested, but had not
been exercised. During 2021, 2.2m
shares were purchased for the Group’s
Employee Benefit Trust, and no shares
were cancelled (2020: 3.8m shares
were purchased and no shares were
cancelled).
Approved by the Board on 2 March
2021 and signed on its behalf by:
Kelvin Stagg
Chief Financial Officer
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 7171
Chairman’s Introduction
to Corporate Governance
structure is outlined below. This
framework underpins the Board’s ability
to set the overall strategic direction of the
Group. It also supports its core values,
policies and procedures, which in turn,
creates a culture in which our business
and employees can act effectively and
with integrity.
The newest addition to the governance
framework, is the establishment of the
Sustainability Committee. This reflects
the increased focus of the Board on ESG
issues. The Committee meets quarterly
to discuss sustainability strategy and
reports to the Board on its work. It is
chaired by Kelvin Stagg, the Group’s
Chief Financial Officer and Executive
Director and includes a number of our
most senior leaders including the Group’s
Chief People Officer, Chief Operating
Officer and Chief Customer Officer. The
highlights of its work are contained in the
Group’s Sustainability Report which can
be accessed in full at www.page.com
Board composition and
activities
This will be the last occasion I address
shareholders as I have served on the
Board for over nine years. In line with
the Code, I will formally step down on
30 April 2022. In 2021, a comprehensive
search for my successor was undertaken
and I am delighted that Angela Seymour-
Jackson was chosen to succeed me.
Angela understands the business, is
passionate about it and comes to the
role with a wealth of executive and non-
executive experience. She will take over
as Chair with effect from 1 May 2022.
Other changes to the Board included
Simon Boddie stepping down from the
Board having served on the Board for nine
years. I would like to thank Simon for his
stewardship of the Audit Committee over
the past nine years. He was truly a trusted
advisor to the Board and the business.
The Board considers itself fortunate to
have secured such a strong successor to
Chair the Audit Committee, Ben Stevens
who was appointed to the Board in early
2021. Ben took over the responsibilities
as Audit Committee Chair in September
2021. He has proven to be a valuable
member of the Board, helping navigate
the business through its recovery.
The Board met frequently in 2021 and
considered a wide range of matters.
Key activities undertaken included close
review of the Group’s financial results
as these returned to and exceeded
pre-pandemic levels and continued
oversight of the culture framework and
measures. The Board considered the
Group’s ESG commitments and oversaw
the Company’s D&I initiatives. More
broadly the Board was keen to ensure
that colleagues felt connected to each
other given the continuation of remote
working in many of our markets and that
the same degree of flexibility, as shown
throughout the pandemic, to working
arrangements were retained as restrictions
were lifted. The benefits of Page Insights
and Customer Connect, (our new
operating system for consultants) were
demonstrated to the Board enabling it to
understand and input to the evolution of
the business’ services to its customers.
I hope you find our Corporate Governance
Report informative. The Board will be
available at the Annual General Meeting to
respond to any questions you may have
on this Report.
David Lowden
Chairman
2 March 2022
David Lowden,
Chairman
Dear Shareholder,
On behalf of the Board, I am pleased
to present the Company’s Corporate
Governance Report for the financial year
ended 31 December 2021.
Like many businesses, last year
presented challenging conditions and
circumstances for the Company. However,
I am delighted to be able to report that
through a combination of the hard work of
colleagues, strong partnerships with our
customers and more favourable trading
conditions, the Group has returned strong
trading results for 2021. This return to
growth has enabled dividends to be
reinstated to shareholders and generally
provided a more stable environment for
all our other stakeholders. The business
has proven itself to be resilient over the
last 12 months, supported by a number of
strategic decisions on where to invest and
on which disciplines to focus.
Corporate governance
This Corporate Governance Report sets
out how the Company has complied with
the UK Corporate Governance Code 2018
(the “Code”). It also aims to explain the
work and activities of the Board, and the
work of its Committees and details the
annual evaluation process for the year
under review.
The Group’s Main Board and Committee
Annual Report and Accounts 2021 71
72
Our Corporate Governance
Framework
THE BOARD
The Board’s role is to provide strategic leadership of the Group within a framework of prudent and
effective controls which enable risk to be assessed and managed. It has a formal schedule of matters
reserved for its decision. More details on pages 79 to 84.
NOMINATION
COMMITTEE
AUDIT
COMMITTEE
REMUNERATION
COMMITTEE
Responsible for ensuring
that the Company has
the executive and non-
executive leadership it
requires and a diverse
talent pipeline.
Details on pages
85 to 87.
Responsible for the
integrity of the Company’s
financial statements and
performance, ensuring the
necessary internal controls
and risk management
systems are in place and
effective.
Details on pages
88 to 92.
Responsible for the
review, recommendation
and implementation of
the Group’s remuneration
strategy, its framework
and cost.
Details on pages
93 to 116.
CHIEF FINANCIAL
OFFICER (CFO)
CHIEF EXECUTIVE
OFFICER (CEO)
Responsible for managing the financial
risks, reporting and planning of the
Group.
Key responsibility is to develop and deliver
the Group’s strategy within the policies
and values established by the Board.
SUSTAINABILITY
COMMITTEE
Responsible for monitoring progress
against sustainability targets, as well as
implementing the Group’s strategy and
contribution to the environment and social
impact.
Details on pages 39 to 48.
EXECUTIVE BOARD
The Executive Board is chaired by
the CEO and includes the CFO. The
Executive Board is responsible for
overseeing operations in our regions and
for overseeing business functions Group-
wide.
Details on pages 77 to 78.
GENERAL COUNSEL & COMPANY SECRETARY
Responsible for ensuring the Board complies with all legal, regulatory and governance requirements.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 7373
Our Board of Directors
Our Board of Directors
DAVID LOWDEN
STEVE INGHAM
Chairman
Chief Executive Officer, Executive Director
Date of Appointment: Director, August 2012,
Chairman, December 2015
Past Roles:
David was a member of the Board of Taylor Nielson
Sofres plc, the marketing services business, from 1999
to 2009, becoming Chief Executive Officer in 2006.
Before joining Taylor Nielson Sofres plc, David held
senior financial positions in Asprey plc, A.C. Nielsen
Corporation and Federal Express Corporation. David’s
prior roles include Non-Executive Director and Chairman
of the Audit Committee for Cable & Wireless Worldwide
plc, Senior Independent Director and Chairman of the
Remuneration Committee of Berensden plc, Non-
Executive Director and Chairman of the Audit and Risk
Committee of William Hill plc. From January 2019,
he was a Non-Executive Director of Huntsworth plc
and was Chairman of the Board of Huntsworth plc
and its Nomination Committee from March 2019 until
Huntsworth plc was sold to Clayton Dubilier & Rice LLP
in May 2020.
Other Current Appointments:
Senior Independent Director of Morgan Sindall Group
plc. Non-Executive Director, and Senior Independent
Director of Capita plc and Non-Executive Director of
Diploma plc. David became Chair of Diploma plc with
effect from 19 January 2022.
Board Committees: Nomination (Chairman)
Skills and Experience:
•
Extensive experience in both general management
and financial management
Many years of operating within international
businesses with cultural diversity
Strong strategic understanding
Proven ability for delivering shareholder value
Strong financial, marketing and commercial skills
Experienced non-executive in several sectors
•
•
•
•
•
Date of Appointment: Plc Board, February 2001 Chief Executive Officer, April 2006
Past Roles:
Steve joined Michael Page in March 1987 as a consultant in the newly created Michael
Page Marketing business. He was then responsible for the launch of the London marketing
team and was promoted to Operating Director in 1990. He was promoted again in 1994 to
Managing Director of both the Marketing and the newly launched Sales businesses. Steve then
started and took responsibility for several other discipline businesses and was promoted to the
Board as Page became a public company in February 2001. In 2005 he took full responsibility
for all UK businesses and then in March 2006, Steve was appointed Chief Executive. Prior to
joining PageGroup Steve spent four years at Johnson Matthey as a qualified metallurgist. From
January 2013 to April 2019 he held the position of Non-Executive Director, Debenhams plc.
Steve was also a member of the Corporate Partnership Board, Great Ormond Street Hospital
from April 2008 to December 2020.
Other Current Appointments:
Chair of the Corporate Partnership Board, Back Up – a charity focussed on providing support
to people with spinal injuries.
Board Committees: None
Skills and Experience:
•
•
35 years’ service with the Group and recruitment industry
15 years as a CEO of a FTSE 250 public company, with strong IR skills, delivering
shareholder value
Strong entrepreneurial and strategic skills having initiated and grown many new global
businesses
Extensive experience in business development and account management
Significant international experience including the emerging markets of SE Asia, China,
Latin America and India
Leadership of a global people business having seen PageGroup grow from 240 to over
7,500 employees across 37 countries
Taken the Group through a global restructure to ensure all operational support staff are
centralised, where possible, in shared service centres, and consistent everywhere
Experience in other sectors and industries having worked on the Boards of a major
charity and retailer
Ensured the Group has a clear vision, purpose and values as well as a clear priority to
improve Page’s diversity and sustainability
Awarded the Institute of Recruitment Professionals Lifetime Achievement Award in 2017
•
•
•
•
•
•
•
•
Contribution:
The Company’s long-term sustainability is safeguarded
by having an effective chair of the Board and David
Lowden successfully fulfils this role. His experience
is significant having held senior non-executive and
chair positions across a range of listed companies.
The Board draws upon his experience and guidance
regularly and his deep understanding of the business
enables him to ensure the needs of the business are
met across the range of strategic and governance
matters affecting the Company.
In accordance with the Corporate Governance Code,
David will stand down as Chairman on 30 April 2022,
having served over nine years on the Board.
Contribution:
Steve Ingham’s contribution is necessary to enable the Company to deliver its strategy to
shareholders and its wider stakeholders. In this people business he has a strong relationship
and understanding of all the key people, as well as an unparalleled knowledge of the sector.
This has enabled him to establish a strong purpose, clear values and ambitious vision for
the Company. He has a 35 year track record of delivering industry leading results in a high-
performance business while investing and expanding the Group’s international footprint from
19 to 37 geographies during his tenure as CEO. He has ensured the Group is clear on its
branding, creating four clear brands globally, under which the business operates. He has
launched multiple specialisms broadening the source of the Group’s revenues away from
purely Finance and Banking, which now represents less than 40% of the Group. A wheelchair
user since March 2019, following a near fatal skiing accident, Steve has led the business in
promoting workplace diversity, in particular the opportunities available to disabled candidates.
Annual Report and Accounts 2021 73
74
KELVIN STAGG
SYLVIA METAYER
Chief Financial Officer, Executive Director
Independent Non-Executive Director
Date of Appointment:
June 2014
Date of Appointment:
September 2017
Past Roles:
Kelvin joined PageGroup plc in July 2006 as Group Financial
Controller and Company Secretary. He was appointed Acting Chief
Financial Officer in October 2013. He held the title of Company
Secretary until December 2013. In June 2014, Kelvin was appointed
Chief Financial Officer. Prior to joining the Group, Kelvin spent six
years at Allied Domecq and four years at Unilever in a variety of
finance functions. He has significant international experience and has
high levels of compliance, change management, large teams and
systems experience, across almost every finance discipline. He is a
Chartered Management Accountant.
Other Current Appointments:
None
Board Committees:
Sustainability (Chair)
Skills and Experience:
•
•
•
•
More than 15 years in the Group with a detailed knowledge of
the Group’s operations
Extensive experience in finance, audit and risk management
Significant international experience including roles in the UK,
Continental Europe and Asia
High levels of compliance, change management, large
teams and systems experience, across almost every finance
discipline
•
Strong network of finance professionals
Past Roles:
Sylvia has previously held a variety of finance and general
management roles in companies operating in a number of sectors,
including Mattel Inc., Vivendi SA, and Houghton Mifflin Harcourt
& Co.
Other Current Appointments:
Chief Growth Officer of Sodexo SA leading strategy, digital, marketing
and sales and member of the Sodexo Group Executive Committee.
Member of the Supervisory Board of Keolis, International Advisory
Board of HEC Business School, Paris and of the “French Tech”
Advisory Board to the French government.
Board Committees:
Audit, Nomination, Remuneration
Skills and Experience:
•
Extensive experience and understanding of international
markets, including the USA, Europe, China, India, and South
East Asia
•
•
•
•
•
•
•
Extensive experience in general and financial management
Extensive experience in designing and delivering ESG
programmes
Leading and delivering change
Developing high-performance teams
Finance, HR, IT and Supply Chain management
Proven ability for delivering shareholder value
Strong strategic understanding
Contribution:
Kelvin Stagg is integral to the Company’s long-term success as he
manages the financial risks, reporting and planning of the business,
contributes to the Company’s strategy and oversees global delivery
of all support services to the business including implementation of
all large-scale projects. He has extensive experience of managing
multi-discipline areas and having been employed for over 15 years
at the Company, he understands the operation of the business at
all levels.
Contribution:
Sylvia Metayer has significant experience working for international
organisations in finance and general management leadership
positions. Her guidance and observations on the demands
and challenges in the various international markets in which the
Company operates strongly supports the Company’s expansion and
its ongoing success. Further, her financial acumen adds additional
strength and depth to the Company’s strategic decision-making.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 7575
Our Board of Directors
PATRICK DE SMEDT
Senior
Independent Director
Date of Appointment:
August 2015
Past Roles:
Patrick spent 23 years at Microsoft during which time he founded
the Benelux subsidiaries, led the development of its Western
European business and served as Chairman of Microsoft for Europe,
Middle East and Africa. Since leaving Microsoft in 2006, Patrick has
served on the boards of a number of European public and private
companies. His previous appointments include: Non-Executive
Director and Chairman of the Remuneration Committee of Victrex
plc, Senior Independent Director and Chairman of the Remuneration
Committee of Morgan Sindall plc and Anite plc, Chairman (Interim)
KCOM Group plc and Non-Executive Director of Kodak Alaris
Holdings Ltd. He has deep knowledge of international markets and
information technology, and experience as a non-executive in diverse
industry sectors.
Other Current Appointments:
Chairman of the Board and the Nomination Committee of EMIS
Group plc Chairman, Non-Executive Chairman of Nasstar Managed
Services Group Limited and Chairman of the Board and the
Nomination Committee of Bytes Technology Group plc.
Board Committees:
Audit, Nomination, Remuneration
Skills and Experience:
•
•
•
•
•
•
Extensive experience of technology and customer services
Experienced non-executive in several sectors
Extensive experience in general management
Many years of operating within international businesses with
cultural diversity
Proven ability for delivering shareholder value
Leading and delivering change
Contribution:
Patrick De Smedt brings extensive understanding of technology
to the Board, a key consideration for any company’s long-term
success. His experience at Microsoft and involvement with a range
of technological industries in international markets is invaluable
in the Board’s decision making. He understands large-scale
transformation projects and can assist the Board in determining the
benefits and threats posed by technologies in the sector.
ANGELA SEYMOUR-JACKSON
Independent
Non-Executive Director
Date of Appointment:
October 2017
Past Roles:
Angela has previously held Executive Director roles with Aegon
UK, RAC Motoring Services Limited and Aviva UK Limited,
and was Senior Advisor to Lloyds Banking Group (insurance).
Prior to that Angela held senior marketing roles with Bluecycle.
com Limited, CGU Insurance plc, General Accident plc and the
Norwich Union Insurance Group. Angela has also served as
a Non-Executive Director of esure plc and Rentokil Initial plc.
She was Deputy Chairman, Senior Independent Director and
Chair of the Remuneration Committee of GoCompare.com
Group until February 2021 when GoCompare.com Group was
acquired by Future plc.
Other Current Appointments:
Non-Executive Director of Future plc and Janus Henderson
Group plc. Non-Executive Director and Senior Independent
Director of Trustpilot Group plc. Angela is also the Deputy Chair
of Pikl, a start-up insurance business.
Board Committees:
Audit, Nomination, Remuneration (Chair)
Skills and Experience:
• Wealth of experience in service focused organisations
•
•
•
•
Experienced executive and non-executive in several
sectors
Strong marketing and commercial skills
Strong strategic understanding
Extensive experience of the complexities of businesses
with a large geographical footprint
Contribution:
Angela Seymour-Jackson has held numerous senior executive
marketing roles and non-executive director appointments in
highly regulated environments. She therefore provides key
skills to the Board in respect of marketing and customer
services which are significant areas of focus for the Company.
Her experience in the highly regulated industries means
that Angela makes a valuable contribution as Chair of the
Remuneration Committee.
Angela is the Company’s Chair designate. She will be
appointed as Chair on 1 May 2022.
Annual Report and Accounts 2021 75
76
BEN STEVENS
MICHELLE HEALY
KAYE MAGUIRE
Independent
Non-Executive Director
Independent
Non-Executive Director
General Counsel
& Company Secretary
Date of Appointment: January 2021
Date of Appointment: October 2016
Date of Appointment: October 2018
Past Roles:
Ben was previously the Group Finance
Director and member of the Board of British
American Tobacco (“BAT”) plc, having spent
29 years with the company in a variety of
finance and operational roles in the UK and
overseas. Prior to that, he held commercial
and finance roles at both Thorn EMI plc and
BET plc. He has also held non-executive
director roles with Trifast plc in the UK and
with ITC Ltd in India. He holds a Bachelor’s
degree in Economics from University of
Manchester and MBA from Manchester
Business School, University of Manchester.
Past Roles:
Before joining Kerry Group plc, Michelle
was Group People & Culture Officer for ISS
World Services A/S. Prior to this she has
held a number of senior executive roles
including Director, Group Integrated Change
Programme at SABMiller plc and General
Manager UK & Ireland for British American
Tobacco plc, having previously undertaken a
number of senior HR roles within the Group.
Michelle’s executive career spans four global
listed companies and she has lived and
worked in nine countries across Europe
and Asia.
Past Roles:
Prior to joining PageGroup plc, Kaye spent
over 9 years at Legal & General where she
held a variety of senior positions including
Head of Legal at Legal & General Group
plc and Chief Resourcing & Legal Officer at
Legal & General Investment Management
Limited.
Prior to this she worked as a solicitor
specialising in employment law for a number
of top tier law firms including Hogan Lovells
and Allen & Overy.
Other Current Appointments:
Non-executive director and Chair of the Audit
Committee and Transaction Committee of
ISS A/S.
Other Current Appointments:
Chief Human Resources Officer,
Kerry Group plc
Board Committees:
Audit (Chair), Nomination, Remuneration
Board Committees:
Audit, Nomination, Remuneration
Skills and Experience:
•
CFO of a FTSE 100 public company for
over ten years
Extensive line management experience
having been Director, Europe for
BAT and Managing Director of BAT’s
operations in Pakistan and in Russia.
Extensive experience in financial, audit
and risk management
Significant international experience
through roles in the UK and overseas
•
•
•
Contribution:
Ben Stevens brings a range of skills to the
Board and the Audit Committee. He has
extensive international executive leadership
experience, having led the finance function
of a FTSE 100 business for a number of
years. He has also worked internationally
and managed international businesses
throughout his career. This experience
makes him well placed to understand a wide
range of business issues. He has a deep
understanding and proven track record
regarding the role and responsibilities of the
Audit Committee in a large listed Group,
given his current non-executive position as
Audit Committee Chair at ISS A/S.
Skills and Experience:
•
Extensive experience in global human
resources leadership
Extensive experience in leading and
delivering organisational change and
transformation
Breadth and depth of leadership
experience in global listed businesses
in service, consumer and business to
business
Strong strategic understanding
Extensive experience in general
management
•
•
•
•
Contribution:
The Company’s long-term success is
highly influenced by ensuring it has a well
thought through human capital strategy.
It recognises its people are at the heart
of everything it does, particularly as an
organically grown business. Michelle
Healy offers the Board deep insight into its
approach in this respect. She has held a
number of senior HR leadership roles while
also having run businesses at an operational
level.
•
Skills and Experience:
• Over 19 years’ experience in legal and
company secretarial matters for public
companies
Extensive listed company, compliance,
litigation and corporate governance
experience
Experience of building, developing and
leading legal functions in international
businesses
Senior legal counsel and company
secretary experience in FTSE
businesses across different sectors
•
•
Contribution:
Kaye Maguire has significant experience
in leading legal, HR and governance
teams and advising boards on a range
of contentious and non-contentious legal
issues including governance and regulatory
matters, cross-border and multi-jurisdiction
contracts and transactions and litigation.
She attends all Board and Board
Committee meetings. Her experience
serves the Board well in terms of ensuring
legal and governance matters are
anticipated, considered and addressed.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 7777
The Executive Board
KELVIN STAGG
Chief Financial Officer,
Executive Director
See biography on page 74.
STEVE INGHAM
Chief Executive Officer,
Executive Director
See biography on page 73.
GARY JAMES
Chief People Officer
Gary joined Michael Page Finance in London in 1984. He has held numerous senior roles in the Sales and
Marketing business. In 2002 he was appointed Managing Director in North America and as Regional Managing
Director of the Asia Pacific region in August 2006. Since 2019 Gary has been responsible for the Group’s global
HR functions. He has been instrumental in driving forward the Group’s culture and engagement framework,
talent development programmes and diversity initiatives. Gary is a member of the Sustainability Committee.
PATRICK HOLLARD
Regional Managing Director – Latin America, Middle East and Africa
Patrick joined Michael Page in France in 1996, having worked previously for KPMG Peat Marwick. Prior to
that he had been Vice-President of AISEC International, the student-led organisation, from 1991 to 1992.
Appointed director in 1999, he moved to Sao Paulo to launch Michael Page Brazil, and then launched offices
in Mexico in 2006, Argentina in 2008, Chile in 2010 and Colombia in 2011. Appointed Regional Managing
Director in 2007, he is now responsible for PageGroup’s operations in Latin America, Middle East and Africa.
Patrick is a member of the Sustainability Committee.
ANTHONY THOMPSON
Regional Managing Director – Asia Pacific
Originally from South Australia, Anthony commenced his Michael Page career in Hong Kong in 2001. He
established and managed several disciplines and brands in Hong Kong and Mainland China and was
appointed Managing Director in 2006. In 2012, he was appointed Regional Managing Director for Greater
China with multiple offices across Mainland China, Hong Kong and Taiwan. In 2015, Anthony moved to
Singapore with additional responsibility for our 6 countries in South-East Asia and subsequently India, Japan
and Australia. He was appointed to the Executive Board in 2018.
OLIVER WATSON
Chief Operating Officer
Oliver joined Michael Page in 1995. He was appointed Director of Michael Page UK Sales in 1997 and
then Managing Director in 2002. In 2006, he was appointed Regional Managing Director for Michael Page
UK Sales, Marketing and Retail. In 2007 he launched Michael Page Middle East and in 2009, he became
Regional Managing Director for Michael Page UK Finance, Marketing and Sales, Middle East, Scotland and
Ireland. In recent years he led and grew PageGroup’s operations in the USA and Canada. In 2018 Oliver was
appointed COO with responsibility for increasing productivity through innovation, technology and people.
He is responsible for the Group’s technology functions, shared service centres and ensuring the adoption
of new initiatives. He has been key in ensuring the successful roll-out of the Group’s new operating system,
Customer Connect. Oliver is a member of the Sustainability Committee.
Annual Report and Accounts 2021 77
78
EAMON COLLINS
Chief Customer Officer
Eamon joined the Group in 2007 as UK Marketing Director and previous to this he held senior marketing and
communication roles at Samsung and Hitachi. Eamon became the Group Marketing Director in 2012 and
was responsible for the Group’s global brand, communications and digital channels. During his time in this
role, he oversaw significant changes both to the platforms that PageGroup uses in reaching customers and
to the marketing teams worldwide that work on them. In January 2021, Eamon was appointed as the Chief
Customer Officer to PageGroup and became responsible for ensuring the voice of the customer is heard and
enhancing understanding of our customer base to drive consistent customer experiences and relationships.
He has retained responsibility for marketing as this forms a critical part of building customer-focused
programmes. Eamon is a member of the Sustainability Committee.
NICOLAS BÉCHU
Regional Managing Director – Northern & Central Europe, Italy and Turkey
Nicolas joined Michael Page in France (Paris) as a Consultant in the Finance practice in 1995 and was
promoted to Director in 2000. In 2002, he launched the newly established business in Belgium and was
promoted to Managing Director in 2003. In 2007, he moved to Milan to manage the PageGroup operations in
Italy. In 2010, he transferred to the Netherlands (Amsterdam) and became responsible for Northern Europe. In
2014 he also became responsible for Germany. In 2021, his remit was extended and he is now responsible for
Austria, Italy, Poland, Switzerland and Turkey.
ISABELLE BASTIDE
Regional Managing Director – France, Spain and Portugal
Isabelle started her career in the banking sector, then quickly moved to a recruitment agency where she
managed a portfolio of large national accounts. She joined Page Personnel France in 1999 as a consultant
in Finance and was quickly promoted to Director. In the 2000s she grew a number of disciplines resulting in
a very strong market position for our French business. She was made Managing Director of Page Personnel
France in 2007 and in 2014, she launched Page Outsourcing in France. Since 2015, Isabelle has been
responsible for all of the Page Executive, Michael Page and Page Personnel brands in France. Appointed to
the Executive Board in January 2021, Isabelle is now responsible for the Group’s operations in France, Spain
and Portugal. Isabelle is also the executive sponsor for diversity and inclusion for Europe.
NICHOLAS KIRK
Regional Managing Director – UK & North America
Nick joined the business in 1995 as a Michael Page Sales consultant based in Leeds. As the office network
expanded, he relocated to London, the Home Counties and then Birmingham working in start-up businesses.
Nick became a Director in 2002 and then the Managing Director of Michael Page Sales in 2007. In 2009, he
transferred across to Page Personnel with a brief to transform the operating model. He spent the next
4 years expanding into new disciplines and rapidly growing the Page Personnel business. Nick was promoted
to Regional Managing Director in 2013 and took on the additional responsibility of Michael Page Finance in
the UK. In early 2018, he restructured the UK business and in doing so launched a more customer-centric
operating model. Later that year, he was promoted to UK Managing Director which included responsibility for
non-operational functions. At the beginning of 2021 he extended his remit and now runs operations in the UK,
Canada and the USA.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 7979
Corporate Governance Report
The Board and its operation
The Board of PageGroup plc is the body
responsible for the overall management
and conduct of the Group’s business, and
approving and overseeing implementation
of its strategy. It has the powers and
duties set out in relevant laws of
England and Wales and in its Articles of
Association.
The Board’s role is to provide strategic
leadership to the Group within a
framework of prudent and effective
controls which enables risk to be
anticipated, assessed and managed.
The Board is responsible collectively to
the Company’s shareholders for the long-
term success of the Company and for
ensuring the Company contributes to all
its stakeholders and to wider society as a
whole.
Composition of the Board
As at 31 December 2021 the Board
comprised the Chair, the Chief Executive
Officer, the Chief Financial Officer and five
independent Non-Executive Directors.
David Lowden will step down from the
Board as Chair and as a Non-Executive
Director on 30 April 2022. As previously
announced, Angela Seymour-Jackson
has been appointed as Chair designate
and her appointment as Chair is effective
from 1 May 2022. Angela will relinquish
her Remuneration Committee Chair role
on becoming Chair and stand down from
the Audit Committee. On appointment as
Chair of the Group she will also assume
the role of Nomination Committee Chair.
A search is underway to identify a new
Non-Executive Director and to appoint
a successor to the role of Remuneration
Committee Chair. Ben Stevens was
appointed as a Non-Executive Director
and Audit Chair Designate on 1 January
2021. He became Audit Chair with effect
from 1 September 2021.
Further details regarding Board
succession including search processes
can be found in the Nomination
Committee report, pages 85 to 86.
The biographies of each of the Directors
and the contribution each Director makes
to the Board can be found on pages 73
to 76.
The composition of the Board is kept
under regular review to ensure it has
the necessary skills and experience
to lead the Group. The Board also
monitors the independence of the
Directors. It considers all current Non-
Executive Directors to be independent.
David Lowden was independent on
his appointment as Chair and Angela
Seymour-Jackson will be independent at
the time of her appointment as Chair.
There is a clear division of responsibilities
between the role of the Chair and that
of the Chief Executive Officer. While
the Board is responsible collectively for
the success of the Company, the Chair
manages the Board to ensure that the
Company has appropriate objectives and
an effective strategy. The Chair ensures
that there is a Chief Executive Officer
with a team to implement the approved
strategy and that there are procedures in
place to inform the Board of performance
against objectives. The Chair also ensures
that the Company operates in accordance
with the principles of good corporate
governance. The Chair’s other significant
commitments are noted on page 73.
The Board considers that these are not
a constraint on the Chair’s agreed time
commitment to the Company.
Patrick De Smedt, as Senior Independent
Director, acts as an alternative channel of
communication for shareholders. He also
acts as a sounding board for the Chair
and serves as an intermediary for other
Directors.
Steve Ingham, the Chief Executive
Officer, has overall responsibility for the
day-to-day management of the Group’s
operations. He develops the vision
and strategy for the Board’s review,
implements the Board’s strategy and
chairs the Executive Committee (known
within the Group as the “Executive
Board”) which executes the delivery of
the annual operating plans. He also leads
the programme of communication with
shareholders.
Executive and Non-Executive Directors
are equal members of the Board and
have collective responsibility for Board
decisions. The Non-Executive Directors
bring a wealth of skills and experience to
the Board and its Committees.
The Board has a formal schedule of
matters reserved which include:
• Group strategy and corporate
objectives;
•
•
•
•
determining the nature and extent
of the significant risks the Board
is willing to take in achieving the
strategic objectives of the Company;
determining major changes to
the nature, scope or scale of the
business of the Group;
corporate governance matters;
approval of Nomination Committee
recommendations on the appointment
and removal of Directors and
succession planning;
•
•
changes to the Group’s capital
structure and approval of any
business plan prior to a new entity
being established in a new territory;
financial reporting, audit and tax
matters;
• material contracts and transactions
not in the ordinary course of
business;
• material capital expenditure projects;
•
•
•
approval of the annual budget;
obtaining major finance; and
communications with stakeholders
and complying with regulatory
requirements.
The schedule of matters is reviewed
annually by the Board.
Induction, training
and information
Relevant training, advice and information
is provided to Directors to enable the
Board to function effectively and efficiently.
This is achieved through a variety of
means such as internal and external
presentations from senior executives
within the business, advisors and tailored
guidance briefings circulated to Board
members. As and when new Directors join
the Board, the Chairman assisted by the
General Counsel & Company Secretary
are responsible for their induction. On
appointment to the Board, each Director
discusses with the Chair and the General
Counsel & Company Secretary the extent
of the training required. The programme
would consist typically of individual
meetings with senior executives, office
visits, attending senior management
meetings and shadowing consultants to
understand the day-to-day activities of
the business. Following the appointment
of Ben Stevens as a Non-Executive
Director in January 2021, a number of
his induction activities were undertaken
virtually. However, as COVID-19
restrictions have lifted, Ben Stevens was
able to supplement this with office visits
and meeting a range of senior members
of the Company’s finance and operations
teams. He has also met, and has close
engagement with, the new EY external
audit partner.
Ben’s induction covered the Company’s
services, Group structure, Board
arrangements, the culture and
engagement framework, financial,
and environmental, social and
governance information, detailed market
presentations, and significant and
emerging risks.
Annual Report and Accounts 2021 79
80
Directors update and refresh their
knowledge and familiarity with
the Group through participation
at meetings with, and receiving
presentations from, senior
management. Angela Seymour-
Jackson understands the business
well having served on the Board
since October 2017 and will
undertake an appropriate Chair
induction programme in 2022.
The Group trialled the use of global
live virtual townhalls in 2020 and
used video conferencing heavily
to ensure Directors remained
connected to the business. This
was very successful and throughout
2021 this practice has continued.
Board Directors have also continued
to participate in a range of virtual
management meetings and live
virtual events in all our regions, which
has enabled them to keep pace with
the challenges and opportunities
arising within the business in 2021.
All Directors have access to the
advice and services of the General
Counsel & Company Secretary.
The General Counsel & Company
Secretary is present at all Board
meetings and is responsible to
the Board for ensuring that Board
procedures are complied with as
well as advising the Board on new
legislation and corporate governance
matters. Board Committees and
Directors are also able to access
independent professional advice at
the Group’s expense if the Directors
deem it necessary in order for them
to carry out their responsibilities.
The Board operates an annual cycle
of matters for its consideration,
supplemented with strategic
topics and governance matters.
The frequency of meetings and
the Board agendas are also kept
under regular review to ensure any
matter that requires discussion at,
or escalation to, the Board can be
accommodated. For each Board
and Committee meeting Directors
receive a pack of relevant papers
and information on the matters to
be discussed. The Board uses a
third party board portal to distribute
information quickly and securely. At
Board meetings, the Chief Executive
Officer presents a comprehensive
update on the business issues
across the Group and the Chief
Financial Officer presents a
detailed analysis of the financial
performance. The Board also
receives at each Board Meeting an
Investor Relations Report, including
any feedback from investors and
Board activities
During the year, the Board has held nine meetings, together with a separate dedicated
strategy day. The Board’s principal areas of focus for the year have centred around
navigating the Group’s recovery as it has emerged from the difficult trading conditions
presented by the pandemic. The Board therefore stayed close to monitoring the
financial performance of the Group. The Board’s strategy sessions were also of
paramount importance. It was a clear priority of the Board to oversee and direct
investment in areas that would make the most difference to our clients and customers
in a fast-paced recruitment market. Although not an exhaustive list, a summary of key
activities considered, reviewed and monitored are below.
Financial Performance
• Group’s financial results throughout the year
• Key metrics such as cash position, headcount, productivity and
overall costs
• Group’s annual budget and quarterly reforecasts
• Capital allocation policy and reinstated dividends
Strategy
• Progress of technology, healthcare & life sciences as high potential
disciplines
• Deep-dive sessions in key markets and business divisions,
e.g. North America, Page Outsourcing
• Completely Customer including NPS and client and
customer feedback
• Sustainability strategy and ESG commitments
Compliance and Regulation
• Corporate Governance update
• Schedule of matters reserved and delegation of authorities
• Board and Committee evaluation
• Modern slavery
•
Information Security and Data Protection reporting
Culture and Engagement
• Culture Framework measures
• Shadow Executive Board reporting
• Diversity & Inclusion initiatives update
Change and Innovation
• Customer Connect including programme costs and benefits
• Page Insights tools
EMPLOYEES
INVESTORS
CUSTOMERS
COMMUNITIES & GOVERNMENT
SUPPLIERS
Pages 61-65 provide full details of how the Board has taken into account stakeholder
interests in accordance with section 172 of the Companies Act. The key above
provides an additional snapshot of where stakeholder groups have been considered
as part of the Board’s work and decision-making.
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Corporate Governance Report
Investor Roadshows. Regional Managing
Directors and other senior managers
may also attend relevant parts of Board
meetings and the Board Strategy Day in
order to make presentations on their areas
of responsibility. All of the above gives a
comprehensive view on the issues facing
the business and enables robust review
of the current and future performance of
the Group.
Committees
The key Board Committees are the Audit
Committee, Nomination Committee and
Remuneration Committee. The recently
established Sustainability Committee has
been tasked by the Board to drive forward
the Company’s ESG strategy.
The Audit and Remuneration Committees
are comprised solely of independent
Non-Executive Directors. The Nomination
Committee is comprised of all Non-
Executive Directors and is chaired
by the Chair of the Board who was
independent on appointment. Details
of the composition and activities of the
Committees can be found in the Audit
Committee Report on pages 88 to 92; the
Nomination Committee Report on pages
85 to 87; and the Directors’ Remuneration
Report on pages 93 to 116. Their terms
of reference are reviewed annually, copies
of which can be found on the Company’s
website www.page.com.
Each Committee also reviews
its effectiveness and makes
recommendations to the Board of any
appropriate changes as and when
required. It is intended that the Chair
of the Board and the Chairs of each
of its Committees will be available to
answer shareholders’ questions at the
forthcoming Annual General Meeting on
31 May 2022.
The General Counsel & Company
Secretary acts as secretary to each
of these Committees and minutes of
meetings are circulated to all Committee
members and to all members of the Board
unless it would be inappropriate to do so.
The newest addition to the Company’s
governance framework is the Sustainability
Committee reflecting the increased focus
of the Board on Sustainability issues. The
Committee meets quarterly to discuss
sustainability strategy and is accountable
for reporting to the Board on the progress
of the Group’s sustainability agenda.
Further details of the membership of the
Committee and the work undertaken can
be found on page 40.
The Group also has an Executive
Committee, known as the Executive
Board, which is chaired by the Chief
Executive Officer. Biographies for Executive
Board members can be found on pages
77 to 78.
The Executive Board meets regularly
and is responsible for assisting the Chief
Executive Officer in the performance of
his duties. These include the development
and implementation of strategy,
operational plans, policies, procedures
and budgets. These activities are
performed at a regional level by regional
management teams for each of the UK,
North America, Continental Europe, Asia
Pacific, Latin America, Middle East and
Africa. Each regional board, known as
“Regional Boards” usually meet at least
four times a year.
Compliance with the UK
Corporate Governance Code
During the year ended 31 December
2021 and to the date of this document,
the Company has applied the principles
and complied with all of the provisions of
the Code. The Code is publicly available
on the FRC website (www.frc.org.uk).
Please see below for details regarding the
application of the principles of the Code.
Principles
Board leadership and Company
Purpose (A-E)
Pages 27 to 65 (Risk, Culture and
Engagement and Stakeholder Engagement)
Division of responsibilities (F-I)
Pages 71 to 72 and 79 to 84 (Corporate
Governance Report)
Composition, succession and
evaluation (J-L)
Pages 73 to 77 and 85 to 87 (Nomination
Committee Report and Directors
Biographies)
Audit, risk and internal control (M-O)
Pages 51 to 60 and 79 to 92 (Corporate
Governance Report, Audit Committee
Report, Principal Risks, Going Concern and
Viability Statement)
Remuneration (P-R)
Pages 93 to 116 (Directors’ Remuneration
Report)
Board and Committee
attendance
The table below sets out the number
of meetings of the Board held during
the year and individual attendance
by the Directors at these meetings,
demonstrating commitment to their role
as Directors of the Company. Attendance
by the relevant members of each
Committee can be found on page 88
(Audit Committee), page 86 (Nomination
Committee) and page 98 (Remuneration
Committee). The Board met nine times
during the year. During the year under
review the Non-Executive Directors
met on several occasions without the
Executive Directors being present. The
Non-Executive Directors also met without
the presence of the Chairman.
A number of meetings took place virtually
this year due to the ongoing pandemic.
Led by the Chairman, meetings continued
to adapt well to this format and continued
to be a forum for debate and constructive
challenge.
Director
No. of meetings
attended
David Lowden
9 out of 9
Simon Boddie
61 out of 6
Patrick De Smedt
9 out of 9
Michelle Healy
9 out of 9
Steve Ingham
9 out of 9
Sylvia Metayer
82 out of 9
Angela Seymour-
Jackson
Kelvin Stagg
Ben Stevens
82 out of 9
9 out of 9
9 out of 9
1. Simon Boddie attended all meetings that he was
eligible to attend before his retirement as a Non-
Executive Director.
2. This was due to there being an unscheduled
meeting to expedite release of trading results to the
market. Angela Seymour-Jackson and Sylvia Metayer
were unable to attend the meeting due to the short
notice provided.
Succession planning
Executive development and succession
planning discussions are held annually.
These discussions focus on the
development and succession of the
Executive Directors, Executive Board
members and other senior managers in
the Group over the short, medium and
longer term. The aim of these sessions is
to ensure that senior executives are being
developed and that there is a diverse
pipeline of talented senior individuals
within the business. Development and
succession planning is a critical part of
the Chief Executive Officer’s performance
objectives for annual bonus and long-
term remuneration. The Group operates
an extensive Talent, Succession &
Development programme across the
business which assesses development
needs and nurtures high-potential
employees throughout the various stages
of their careers. Diversity considerations
Annual Report and Accounts 2021 81
82
are a fundamental element of the
programme.
In addition, the Nomination Committee
also considers the breadth and depth
of experience of the Non-Executive
Directors and considers on a regular
basis succession planning for the Board
as a whole. Further details on which
and the Board’s policy on diversity, both
at Board level and the Group, can be
found in the Nomination Committee
Report on page 87 and the Strategic
Report on pages 29 to 37.
Performance evaluation
In accordance with the Code, an
evaluation of the Board, its Committees,
individual Directors and the Chair
is carried out annually. The last
externally facilitated Board evaluation
was undertaken in 2019 and was
carried out by Lintstock, a third party
Board effectiveness advisor with
no connection to the Company or
individual Directors. In accordance
with the Code an externally facilitated
evaluation will be undertaken in 2022.
The Board has worked throughout
2021 to address the key items that
were identified in the 2020 evaluation.
Last year we reported that maximising
and improving productivity, review of
new areas of investment and Board
succession matters were key priorities
emerging from the evaluation. Below
sets out details of the Board’s work in
each of these areas.
Productivity: Improvements in
productivity were achieved through
a range of actions and investments.
For example, the experienced hire
programme and the continued roll-out
of Customer Connect and Page Insights
systems materially assisted the Group
in optimising its productivity. The Board
has played a pivotal role in overseeing
these programmes and monitoring
productivity metrics at each Board
meeting. The Board was pleased to see
gross profit per fee earner increased
16.8% to £157.2k (2019: £140.4k).
New areas of investment: Throughout
the year, the Board has dedicated
significant time to reviewing KPIs,
progress and strategy with executive
management regarding the progress
of high potential disciplines such as
technology, healthcare and life sciences
and has held strategy sessions with the
Page Outsourcing senior team.
Succession: Board composition and
succession continues to be a keen area
of focus for the Board. In 2021, the
Nomination Committee undertook a
thorough internal and external search for
the Group’s new Chair and ensured a
strong Chair successor was appointed.
Ben Stevens was also appointed in
2021 as a Non-Executive Director and
Audit Committee Chair and his extensive
experience adds value to the work of
the Board and Audit Committee.
In 2021 the Board and Committee
evaluation was conducted by the
Chairman, assisted by the General
Counsel & Company Secretary and
the Senior Independent Director. The
objective and scope of the annual
evaluation was to assess all aspects
of the Board’s effectiveness. The
review took the format of a detailed
questionnaire completed by all Board
members hosted on a secure third
party portal. Feedback was provided
on an anonymous basis and the areas
evaluated included:
- the Board’s performance over the last
year;
- stakeholder understanding and
oversight;
- Board succession planning;
- the effectiveness of Board support;
- understanding and implementation of
strategy including strategic priorities;
and
- the Board‘s focus and relationships.
A comprehensive report on the
evaluation was prepared for, and
discussed at, the Board. The outcome
of the review was that the Board and
the Chairman are performing well with
relationships considered to be cohesive
and high levels of engagement and
commitment being reported. Items that
emerged for consideration and action
during 2022 included ensuing a smooth
and effective handover to a new Chair
of the Board, encouraging further
progress on the Group’s diversity
initiatives and monitoring the progress
of the new strategic areas and high
potential markets.
The Chair has followed up the results
from the questionnaires directly with
each Director on a one-to-one basis,
where the outcomes were discussed,
together with the performance of the
Directors. Additionally, a separate
questionnaire was completed in respect
of the Chair’s performance and the
Senior Independent Director conducted
a review of the Chairman.
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Corporate Governance Report
In accordance with the requirements of
the Code and the recommendations of
the FRC’s Guidance on Risk Management
and Related Financial and Business
Reporting, the Board has reviewed and
agreed its approach to risk and its risk
appetite when considering its strategy
and the management of its risks. It has
also considered its longer-term viability.
Details on the Board’s risk appetite and its
assessment of its longer-term viability can
be found in the Strategic Report on pages
59 to 60. Further, the Board, with the
assistance of the Audit Committee, has
carried out a review of the effectiveness
of the Group’s risk management and
internal control systems, including a
review of the Internal Audit activities and
the financial, operational and compliance
controls for the period from 1 January
Re-election of Directors
The Code requires all Directors to retire
and stand for re-election at each Annual
General Meeting. All Directors will
submit themselves for re-election at the
forthcoming Annual General Meeting on
31 May 2022. However, David Lowden
will not stand for re-election as he will
have retired prior to the Annual General
Meeting.
Internal control and risk
management
The Board retains responsibility for the
Group’s overall risk appetite and for the
effectiveness of its risk management and
internal control systems. The procedures
established by the Board have been
designed to meet the requirements of the
Group and the risks to which it is exposed
and these are reviewed on a regular basis.
These procedures also provide an
ongoing process for identifying,
evaluating and managing principal and
emerging risks. The system of internal
control includes financial, compliance
and operational controls, which are
designed to meet the Group’s needs.
These controls aim to safeguard Group
assets, ensure that proper accounting
records are maintained, that the financial
information used within the business and
for publication is reliable and supports the
successful delivery of the Group’s strategy.
Any system of internal control can only
provide reasonable, but not absolute,
assurance against material misstatement
or loss. In practice the Board delegates
the implementation of the Board’s
policy on risks and control to executive
management and this is monitored by
an Internal Audit function which reports
back to the Board through the Audit
Committee.
The key elements of our system of internal
control are as follows:
•
Group Organisation – The Board of
Directors meets at least eight times
a year and holds extra meetings
where this is considered necessary.
In 2021, Board meetings have been
held outside the agreed schedule
to ensure the expedited release of
trading results to the market. The
Board meetings focus both on
strategic issues and operational
and financial performance. There
is also a defined policy on matters
reserved strictly for the Board which
is reviewed on an annual basis.
The Regional Managing Director,
supported by a Regional Finance
Director, of each of our regions is
accountable for establishing and
monitoring internal controls within our
respective regions.
• Annual Business Plan – The Board
reviews the Group’s strategy and
business plan. Performance is then
monitored by the Board through the
review of monthly reports showing
comparisons of results against
budget or modelling, and the prior
year, with explanations provided for
significant variances.
• Policies and Procedures – Policies
and procedures are documented
over both financial controls and
non-quantifiable areas such as the
Group’s whistleblowing policy and
its policy relating to anti-bribery and
corruption and gifts and hospitality.
• Risk Management – The Board
has established a framework for
identifying current and emerging
risks and processes and controls for
managing risk, both at a strategic
and operational level. As a minimum,
this is reviewed on an annual basis. In
2021 this was conducted at the half
year and full year.
•
Internal Audit – The Group’s Internal
Audit function examines business
process controls throughout the
Group on a risk basis and reports the
findings to the Executive Board and
Audit Committee. Agreed actions are
monitored and reported to the Audit
Committee, who in turn report to
the Board. Due to travel restrictions,
Internal Audit undertook much of their
work remotely in 2021 and reported
no reduction in the quality of the
audits undertaken.
• Confirmations from Executive
Management – The Managing
Director and Finance Director of our
operations in each country formally
certify twice a year whether the
business has adhered to the system
of internal control during the period,
including compliance with Group
policies. The statement also requires
the reporting of any significant control
issues that have emerged, including
suspected or reported frauds, so
that areas of Group concern can
be identified and investigated as
required. These confirmations and
supporting controls self-assessment
questionnaires are reviewed by
the Internal Audit function and a
summary of findings is provided to
the Audit Committee for review.
Annual Report and Accounts 2021 83
84
2021 to the date of this Annual Report.
No significant failings or weaknesses
were identified. A confirmation of any
necessary actions is, therefore, not
provided. However, had there been any
such failings or weaknesses the Board
confirms that necessary actions would
have been taken to remedy them.
Whistleblowing
The Board takes its oversight duties
of the Company’s whistleblowing
arrangements very seriously.
PageGroup operates an external
global confidential ‘Speak-Up’ helpline
supported by a Speak-Up policy
available on each country’s website
and translated into all PageGroup
languages. The Board reviews all
reports to the helpline including the
Company’s response. In 2021 four
instances to the Speak-Up helpline
were recorded. One report requested
an internal system was available
in the Spanish language, this was
implemented. The other reports related
to local HR matters. All instances
raised via the Speak Up helpline were
discussed at the Board and it was
satisfied with the Company’s approach
to each report.
Directors’ confirmation
The Directors are responsible for
preparing the Annual Report in
accordance with applicable law and
regulations. Having taken advice
from the Audit Committee, the Board
considers the Annual Report and
Accounts, taken as a whole, as fair,
balanced and understandable and that
it provides the information necessary
for shareholders to assess the
Company’s position and performance,
business model and strategy.
Neither the Company nor the Directors
accept any liability to any person in
relation to the Annual Report except to
the extent that such liability could arise
under English law.
Relations with shareholders
Understanding the views of
shareholders and active engagement
with our shareholders is always
considered a key priority for the Board.
The Chief Executive Officer and the
Chief Financial Officer supported by
the Investor Relations team make
themselves available, wherever possible,
to meet with shareholders and analysts
at their request. In 2021, four investor
roadshows and five investor relations
conferences were held. There were also
c. 11 individual meetings, telephone
or video calls. The meetings were held
either in person or virtually during the
lockdowns in the UK. This regular
engagement was supplemented with
presentations to analysts after our
quarterly and full year results.
In December 2021, the Company held
a virtual Capital Markets Event that
provided an update on the strategic
investments that have been made
during the pandemic. The senior
management team presented topics
that included our new market category
of high-potential disciplines, our
experienced hire programme and the
benefits these programmes have for
the business, together with an update
on the investment that has been made
in our Page Outsourcing business.
Additionally, an update was provided on
the Customer Connect programme and
the investments and progress that have
been made in ESG and Diversity and
Inclusion.
The Group’s Chair and the Chairs of
the Committees also make themselves
available for individual investor and proxy
agency engagement. For example, the
Chair and General Counsel & Company
Secretary met with PIRC earlier in the
year. This engagement was helpful and
reinforced the need for the Group to
articulate more clearly its sustainability
strategy. This can be found in the
Group’s Sustainability Report which is
available on www.page.com.
The Annual Report and Accounts are
available to all shareholders either in
hard copy or via the Company’s website
www.page.com. The website contains
up-to-date information on the Group’s
activities, published financial results and
the presentations used for briefings and
investor meetings held during the year.
These are available to download.
The Annual General Meeting is an
additional opportunity for Board
members to meet with shareholders
and investors and give them the
opportunity to ask questions. Final
voting results are published through a
Regulatory Information Service and on
the Company’s website following the
meeting. The Board looks forward to
the Annual General Meeting in 2022
and engaging with shareholders.
Conflict of interest
The Company has implemented robust
procedures in line with the Companies
Act 2006, requiring Directors to seek
appropriate authorisation from the
Board prior to entering into any outside
business interests which have, or
could have, a direct or indirect interest
that conflicts, or may conflict, with the
Group’s interests. These procedures
have operated effectively throughout
the year under review. The Nomination
Committee is responsible for reviewing
possible conflicts of interest. It makes
recommendations to the Board as to
whether a conflict should be authorised
and the terms and conditions on which
any such authorisation should be given
by the Board. Please see page 85 of
the Nomination Committee report which
provides further details about how the
Board considered conflicts in respect of
Directors’ additional appointments.
Only Directors without an interest in the
matter being considered will be involved
in the decision and each Director must
act in a way they consider, in good
faith, will promote the success of the
Group. All Directors are aware of their
continuing obligation to report any
new interests, or changes in existing
interests, that might amount to a
possible conflict of interest in order that
these may be considered by the Board
and appropriate authorisation given.
David Lowden
Chairman
2 March 2022
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Nomination Committee Report
De Smedt be extended for a further
three-year term. Patrick has extensive
technology sector experience, a skill set
which is relied upon as the Group drives
forward its innovation and data insight
strategy. Patrick has proven himself to
be a highly effective Senior Independent
Director, a key role contributing to the
Board’s future success.
Purpose
The Committee is an important
component of the Company’s governance
framework and the Group’s organic
growth strategy. The Nomination
Committee is responsible for ensuring
that the Company has the executive
and non-executive Board leadership it
requires, both now and for the future. It
reviews, and challenges where it identifies
gaps, succession plans for all key senior
roles to ensure the organisation’s long-
term stability. It also seeks to ensure that
talented individuals are provided with
opportunities to develop.
Membership
During the year under review the members
of the Committee were myself, as Chair
of the Committee, Simon Boddie,
Patrick De Smedt, Michelle Healy, Sylvia
Metayer, Angela Seymour-Jackson and
Ben Stevens. Board and Committee
appointments are for three-year periods.
Only members of the Committee attend
meetings. As mentioned above, Patrick
De Smedt’s appointment was extended
for a further three-year period (see
page 109 for further details) and Simon
Boddie retired. On my retirement, Angela
Seymour-Jackson will become the
Committee Chair. No Director is entitled
to vote in respect of their own continuing
appointment.
The Chief Executive Officer is regularly
invited to attend meetings and other
individuals such as the Chief People
Officer and external advisers may attend
meetings by invitation only, when this is
considered appropriate and valuable.
Members view this arrangement
as fostering appropriate challenge,
questioning and debate regarding
the recommendations made by the
Committee to the Board.
Additional commitments
Details of my and all Committee members’
other significant commitments can be
found on pages 73 to 76. The Committee
considers and approves any additional
appointments held by Directors. In 2021,
I was appointed as the Senior Independent
Director to Capita plc and Chair of
Diploma plc. Both appointments were
considered by the Committee, when I was
not present. The Committee determined
that neither appointment would interfere
with my duties for the Group. It was
agreed should any conflict situation
arise, I would not be present at any such
discussions. The additional Chair position
at Diploma plc was considered acceptable
for the short overlap period until I step
down from the Board in April 2022.
In February 2021, following the
acquisition of GoGo Group plc, Angela
Seymour-Jackson was appointed as a
Non-Executive Director of Future plc.
This appointment was considered by
the Committee and it was satisfied that
the appointment does not interfere with
Angela Seymour-Jackson’s duties and
time commitment to the Company both
now and in the future.
Myself and Angela Seymour-Jackson were
considered as independent in line with the
Code at the time of appointment to the
Chair and Chair designate position.
Responsibilities
The key responsibilities of the Committee
are to:
•
assess and nominate members to
the Board in accordance with the
process and diversity considerations;
• maintain the right mix of character,
skills and experience on the Board
and its Committees;
• make recommendations to the Board
on development and succession
plans for members of the Board and
senior management;
•
•
•
approve job descriptions and written
terms of appointment for Directors;
review the independence of Non-
Executive Directors, taking into
account their other directorships; and
consider diversity and inclusion
objectives in terms of the Group’s
talent pipeline and new senior
appointments.
Succession planning and
processes
The Committee monitors length of tenure
for the Board and Committee members
to ensure ongoing independence and
considers succession plans both in the
short and long term, especially for key
roles on the Board and those that require
specific skills or experience, such as the
Chairs of the Audit and Remuneration
Committees. In addition, executive
development and succession planning
discussions are held annually.
David Lowden,
Committee Chair
Dear Shareholder,
The summary below sets out the
Nomination Committee report for the
year ended 31 December 2021. The
Committee is in the privileged position of
helping shape the future leadership of the
business. It is incredibly important that the
Company’s leaders now and in the future,
represent our customers and society as
a whole. Given this is a key priority for
the Group, the work of the Committee
throughout the year has been to focus on
succession planning for our Board and
senior leadership team, while monitoring
the progress and output of development
programmes to encourage as diverse a
talent pipeline as possible. As I reached
nine years’ service on the Board in 2021,
the Committee also spent considerable
time ensuring a comprehensive search
process was undertaken which led to the
appointment of Angela Seymour-Jackson
as my successor. Further details of the
search process can be found on page 86.
The Board represents a wide range of
nationalities and backgrounds. During the
year, due to his length of tenure, Simon
Boddie stepped down from the Board and
Nomination Committee, and Ben Stevens
joined the Board and Committee. Ben’s
biography is on page 76. His extensive
experience across a variety of markets
has made him a valuable member of
the Committee, contributing a wide
perspective on the work the Committee
undertakes.
The Committee keeps its membership
under review and it was satisfied that the
Board and its Committees included the
appropriate mix of skills, experience and
knowledge. However, the Committee is
acutely aware that the Board does not
have a member with an ethnic minority
background, and is committed to
changing this in line with Parker Review
timelines.
In 2021, the Committee recommended to
the Board that the appointment of Patrick
Annual Report and Accounts 2021 85
86
When the Committee considers an
appointment it follows a formal and
transparent procedure. It is assisted
in its search for new Non-Executive
Directors by an independent executive
search company. With each new search
the Committee selects the executive
search company which it considers the
most appropriate and relevant for the
assignment. These executive search
companies have no connection with
the Company or individual Directors
other than the provision of the search
services. With each assignment a
detailed candidate profile is compiled
and discussed by the Committee,
taking into consideration the balance of
skills and experience of existing Board
members and the requirements of the
Company and its future strategy.
If approved, a search and selection
process based on the agreed profile
is undertaken. The recruitment
process places importance on
diversity considerations. Candidates
are identified and selected against
objective criteria including their skills
and experience while having due regard
to the benefits of diversity on the Board.
Shortlisted candidates are assessed
and interviewed by members of the
Committee and the Board. Thereafter
a recommendation of appointment is
made to the Board.
In respect of the Chair succession,
the above process was followed.
The search process was led by
Patrick De Smedt, the Group’s Senior
Independent Director, who chaired the
Committee in connection with the Chair
succession process. The Committee
appointed Russell Reynolds Associates
to advise in the search. Russell
Reynolds Associates were chosen due
to their industry leading experience
and previous knowledge of the Group.
Russell Reynolds Associates has
no connection to the Group or its
Directors. Following consideration of
internal and external candidates and
independent assessment by Russell
Reynolds Associates, the Committee
recommended to the Board the
appointment of Angela Seymour-
Jackson. She was appointed due
to her exceptional non-executive
and executive experience and deep
understanding of the sector and
PageGroup’s business and culture.
In light of Angela’s appointment as
Chair designate, a recruitment process
has been commenced to identify
a new Non-Executive Director and
Remuneration Committee Chair.
Attendance during the year
During 2021 the Committee met
on eight occasions. Details of the
members’ attendance at meetings
of the Committee are set out in the
table below.
To provide further context for the
attendance record below, the reasons
for absence included a meeting being
held on short notice and Angela
Seymour-Jackson not be able to attend
the meeting discussing her appointment
as Chair. The meeting held on short
notice was to formalise the continued
retention of YSC Consulting (“YSC”), as
an adviser to the Committee. YSC is an
independent global talent leadership
consultancy, with no connection to the
Group. All Directors had attended the
prior meetings where tender proposals
were discussed and the support of
each of the absent Directors had been
confirmed in advance of the meeting.
Director
No. of meetings
attended
David Lowden
8 out of 8
Simon Boddie
5 out of 5
Patrick De Smedt
8 out of 8
Michelle Healy
7 out of 8
Sylvia Metayer
7 out of 8
Angela Seymour-
Jackson
6 out of 8
Ben Stevens
7 out of 8
Committee’s focus during
2021
The Committee continues to focus
on its oversight and monitoring of
Talent, Succession and Development
(“T, S & D”) programmes across the
business to ensure that these are fit for
purpose and achieve their aims. There
are a range of programmes in place
depending on career stage. Together
with the in-house talent team, we
use external advisers to support the
suite of development programmes.
As mentioned above, YSC were
retained as the partner to support the
development of our most senior people.
These programmes generally include
components such as 360 degree
feedback and coaching. Development
of a coaching culture across the
business is considered important for the
Group’s ongoing success and therefore
is a key feature of programmes offered.
The talent programmes and promotions
are monitored and reported upon to
ensure gender and other diversity
characteristics are represented.
In 2021 the Group’s Executive Board
was expanded and the Committee
has sought to play its part in ensuring
this new senior management structure
is successfully embedded into the
business. Each new member of the
Executive Board has participated in
one to one sessions with Committee
members in order to ensure strong
working relationships and facilitate
the Committee’s understanding of the
mix of skills and capabilities within the
senior team. This knowledge assists
the Committee in its reviews of the
succession pipeline, and talent matrix
for senior leaders, enabling it to ensure
that there are no critical gaps and talent
is being nurtured.
In 2021 the Committee specifically
reviewed the work being done to
accelerate the progression of female
talent. This included reviewing the
actions and interventions implemented
to expedite female talent progressing
through the organisation and monitoring
the existing female talent pipeline. The
Committee is pleased to report that
the business committed in 2021 to
having 50:50 gender split across senior
management grades by 2030. Further
details are set out in the Company’s
Sustainability Report available at
www.page.com.
Committee evaluation
The activities of the Committee
were reviewed as part of the annual
evaluation process which, in 2021, was
undertaken internally by the Chairman
supported by the Senior Independent
Director and the General Counsel &
Company Secretary. The evaluation
process combined anonymous survey
questions designed to draw out views
on the operation of the Committee and
its performance and was supplemented
with individual interviews with
Directors. The results showed that the
Committee is functioning well. There
was consensus on areas of progress
such as improvement in diversity
considerations and succession matters.
However, Committee members stated
that the impetus behind all of this
work must continue and evolve. The
evaluation revealed that Committee
members are particularly aware of the
lack of ethnic diversity on the Board.
The roadmap to compliance with the
Parker Review will be considered by
the Committee in connection with its
succession planning and in particular in
the context of vacancies on the Board
that arise before the end of 2024. The
Board intends to have appointed a
person of colour to the Board by the
end of 2024.
In 2022 the evaluation process will
be facilitated externally in line with
the requirements of the Corporate
Governance Code.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 8787
Diversity
As a recruitment company we are
passionately committed to promoting
diversity, inclusion and equality in the
workplace both internally and externally.
Our Company Purpose is to change lives
for people by creating opportunities to
reach potential and diversity and inclusion
is therefore inextricably linked to our
strategy.
The Committee views diversity and
inclusion in its broadest sense. It is fully
committed across the organisation to
a diversity policy which seeks diversity
of ethnicity, experience, capability,
geographic experience, gender and all
other qualities which makes each of
us unique. Angela Seymour-Jackson’s
appointment as the Company’s next
Chair is demonstrative of the Group’s
commitment to diversity.
The Board’s diversity and inclusion
policy is reviewed annually and is
available on the Company’s website
at www.page.com. The Nomination
Committee implements the policy and a
summary of its key objectives are below:
•
to ensure different perspectives and
insight are brought to all areas of
the business, including the Board,
generating creativity, problem-solving
capability and sustainability that
would not otherwise be possible;
• maintain Board and Committee
membership to be at least one-third
female and include ethnic minority
representation; and
•
ensure candidate lists for Board
positions should include individuals
drawn from a wide range of
experiences and backgrounds.
Objective
Maintain Board and Committee membership
to be at least one-third female.
Status
Met: Board and each Board Committee
currently has over one-third female
representation.
Objective
Company aspires to meet the Parker Review
objective of one Director from a minority
ethnic background by 2024.
Status
Ongoing: The Board is committed to
meeting this objective and
intends to do so in line with the Parker
Review timescales.
Objective
Female representation of at least 25% within
senior management and their direct reports
as defined by the Corporate Governance
Code (the “Code”).
Status
Met: As at 31 December 2021, 30.3% of
senior management as defined by the Code
and their direct reports were female.
Objective
50:50 gender split for management grades
across the global organisation.
Status
Ongoing: As at 31 December 2021 there
were 62% men:38% women holding
positions of Associate Director (and
equivalent) and above.
The Board has a mix of complementary
skills and a range of nationalities are
represented. However, the Board knows
that it lacks ethnic diversity and this must
change. It is committed to appointing a
person of colour in line with the Parker
Review and the roadmap to achieve
compliance is outlined earlier in this
report.
In terms of other actions being taken to
improve ethnic minority representation
across the business, we have a
successful reverse mentoring programme
in place where senior executives are
mentored by colleagues from a different
ethnic background to their own. This
aims to foster relationships and provide
a greater understanding in senior
management of the challenges faced
by minorities within the workplace. In
2021 the Shadow Executive Board was
introduced which provides increased
exposure for high-potential diverse talent
and a channel to ensure more diverse
views are heard at the highest levels of the
organisation. Regular reports and updates
are provided from the Shadow Executive
Board to the Executive Board.
The Committee will continue to commit
to exceeding the recommendations of
the Hampton-Alexander Review with
over 33% of the Board being female.
However, we continue to recognise that
there is currently a lower proportion of
women holding senior roles below Board
level positions. A summary of the actions
designed to change this are below.
• A mentoring programme is in place
for senior women and a new career
sponsorship programme will launch
in 2022 to improve monitoring and
tracking of high potential women
throughout the organisation.
•
•
There is ongoing and continued
support for the women@page global
network aimed at engagement,
enablement and empowerment of
women across the organisation.
In 2021 a global female leadership
survey was undertaken to help
understand women’s progress and to
assist in driving strategy to accelerate
female development.
• Where internal promotion is not
viable for a position, the Group is fully
committed to diverse shortlists with
female representation.
• Managing Directors and above have
diversity objectives relating directly to
their remuneration.
Board Directors as at 31 December
2021
Men
5 (62.5%)
Women
3 (37.5%)
Executive Board & Direct Reports as
at 31 December 20211
Men
Women
53 (69.7%)
23 (30.3%)
1. As determined in accordance with the definition
contained in the Code
Plan for 2022
In 2022, Angela Seymour-Jackson will
take over as Chair of the Committee.
Ensuring a smooth Chair transition
process is a clear priority for the
Committee alongside driving continuous
improvement in the Talent, Development &
Succession programmes operating across
the Group.
I look forward to working with Angela to
handover the Chair responsibilities. I am
confident that this will be both a thorough
and straightforward process.
David Lowden,
Nomination Committee Chair
2 March 2022
Annual Report and Accounts 2021 87
88
Audit Committee Report
Each member of the Committee
has a wealth of business experience
across a range of sectors making
them well placed to perform the work
of the Committee. The Committee’s
training takes place on an ongoing
basis through updates provided by
the Company’s External Auditor, or
internal finance team, on developments
in corporate reporting, legislation and
regulatory guidance.
Only members of the Committee are
entitled to attend meetings. Other
individuals, such as the Chairman of
the Board, the Chief Executive Officer,
the Chief Financial Officer, the General
Counsel & Company Secretary, the
Director of Internal Audit and the
External Audit Partner are regularly
invited to attend meetings as necessary.
The Committee can invite others to
attend as appropriate.
The Board assesses the competence of
those sitting on the Committee annually.
In 2021, it was satisfied that myself and
Simon Boddie had recent and relevant
financial experience as required by the
Code. Sylvia Metayer also has relevant
financial and accounting experience and
other members of the Committee have
a sufficiently wide range of business
experience and expertise such that the
Committee has competence relevant
to the sector in which the Company
operates. The relevant qualifications
and experience of the Committee
members are shown in their biographies
on pages 74 to 76. The Committee
met with the Director of Internal Audit
and External Auditor during the year
without the presence of management
in order to provide an opportunity for
confidential discussion. The Director of
Internal Audit and the External Auditor
also met with, and had direct access
on an ongoing basis to, the Chair of the
Committee. Additionally, the Committee
had the opportunity for private sessions
with the Chief Financial Officer and the
General Counsel & Company Secretary.
Principal areas of focus
The Committee is committed to
maintaining and monitoring the quality
and integrity of financial reporting, as
well as assessing the Company’s risk
management systems and internal
control environment. Set out in the table
on page 89 is a summary of the main
activities of the Committee during 2021.
The priorities for the Committee in 2021
included understanding forecasting, and
ensuring financial reporting was accurate
and timely, given the pace of the recovery
across the majority of the Group’s
markets. As 2021 saw both a change in
Chair of the Committee and in the lead
External Audit partner, it was important
to the Committee to satisfy itself that
a full and smooth transition had taken
place. This was successfully achieved
through a series of meetings between
myself, the Committee members and the
new External Audit partner, and with key
members of the global finance leadership
team.
The Committee has responsibility
for overseeing risk and controls. To
this end, it carried out a review of
appropriateness of the Group’s internal
control environment and risk strategy.
Further, deep-dive reviews of global
tax processes and information security
robustness in respect of ransomware
were undertaken.
The Committee also reviews key
financial policies. As in prior years,
the tax strategy was reviewed by the
Committee and recommended for
approval by the Board. This strategy
can be found on www.page.com.
Other key policies reviewed by the
Committee included the Group’s
treasury policy, and the non-audit
fee policy to ensure these are up to
date and reflect current best practice.
The Committee also spent time
understanding the impact on the
Group of the proposals set out in the
Government consultation on Corporate
and Audit reform published in March
2021.
The Committee met on eight occasions.
Key issues covered by the Committee
are reported through regular reports to
the Board.
Committee meetings are set to
coincide with key dates of the financial
reporting calendar and the audit cycle.
The Committee can confirm that it is
provided with sufficient resources to
undertake its duties.
Details of the members’ attendance at
the meetings of the Committee are as
follows:
Director
No. of meetings
attended
Sylvia Metayer
6 out of 8
Angela Seymour-
Jackson
7 out of 8
Patrick De Smedt
8 out of 8
Michelle Healy
8 out of 8
Ben Stevens
Simon Boddie
7 out of 8
5 out of 5
Further details regarding the
background to the attendance details
are as follows. Simon Boddie attended
Ben Stevens,
Committee Chair
Dear Shareholder,
I am delighted to present my first Audit
Committee report having taken up the
position of Chair of the Committee in
September 2021. I would like to take
this opportunity to extend the thanks of
the Committee to our outgoing Chair,
Simon Boddie, for his dedication and
commitment to the role, and the work
of the Committee. I have personally
appreciated Simon’s help in ensuring a
comprehensive transition of the Chair’s
responsibilities and duties. We have also
seen a change in our external audit lead
partner, and I am pleased to report that
this transition has proven to be equally
straightforward and successful. This year
the Committee has been particularly
involved in ensuring that the Company’s
financial reporting has kept pace
accurately with the evolving economic
landscape as the recovery from the
effects of the pandemic took shape and
reviewing key areas of risk and controls.
Purpose
The Audit Committee is a fundamental
part of the Group’s governance
framework as the guardian of the integrity
of the Company’s financial statements
and external reporting of performance.
It also must ensure that the necessary
internal controls and risk management
systems are in place and effective.
Membership
I took over the role of Chair of the
Committee in September 2021.
I, Patrick De Smedt, Michelle Healy,
Sylvia Metayer and Angela Seymour-
Jackson all served as Committee
members throughout the year. Simon
Boddie served as a Committee member
and Chair until his retirement on
1 September 2021.
Angela Seymour-Jackson is the Group’s
Chair designate and takes over the
Chair role on 1 May 2022. Accordingly,
she will step down as a member of the
Committee at this time, although she
will continue to be invited to meetings
as an attendee. A search is underway to
recruit her successor.
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Audit Committee Report
all meetings he was eligible to attend
before his retirement as Chair of the
Committee. The meetings that were
unattended by other Committee members
were due to the meetings being held out
of scheduled cycle to ensure expediated
release of trading results to the market, the
responsibility to release such information
outweighing attendance considerations.
Financial reporting
In its financial reporting to shareholders
and other stakeholders, the Board through
the work of the Committee seeks to
ensure that it presents a fair, balanced
and understandable assessment of
the Group’s position and long-term
sustainability, providing necessary
information for shareholders to assess
the Company’s business model, strategy
and performance. The Company has an
established process for reviewing the
Annual Report and Accounts to ensure
it is fair, balanced and understandable.
This process was followed this year. It
included ensuring compliance with the
regulatory requirements for the Annual
Report and Accounts; a thorough review
of going concern analysis; a process to
determine the accuracy, consistency and
clarity of the data and language; and a
detailed review by all appropriate parties
including external advisers. A checklist
of all the elements of the process was
Main activities of the Audit Committee during 2021
completed to document the process and
cascaded sign-off implemented through
the Group’s management structure to
provide assurance to the Committee that
the appropriate procedures had been
undertaken by all Group companies.
The Committee has reviewed the
Company’s 2021 Annual Report and
Accounts. Comments were provided and
incorporated into the Annual Report and
Accounts and the Committee advised the
Board that, in its opinion, the Annual Report
and Accounts taken as a whole is fair,
balanced and understandable and provides
the information necessary to assess the
Company’s performance, business model
and strategy.
The Committee has an agreed, rolling programme of agenda items which the Committee Chair and General Counsel & Company
Secretary keep under regular review to ensure that all key financial reporting and risk matters are properly considered. The list below
summarises the key items considered by the Committee during the year.
JANUARY
APRIL
OCTOBER
Review of Financial Statements
Review of Financial Statements
Review of Financial Statements
• Quarter 4 trading update
• Quarter 1 trading update
• Quarter 3 trading update
MARCH
JULY
Review of Financial Statements
Review of Financial Statements
• Quarter 2 trading update
AUGUST
Compliance
• Government consultation on audit reform
• Non-Audit Fee Policy review
DECEMBER
Review of Financial Statements
• Review of 2021 Annual Report and
• Draft preliminary announcement
and 2020 Annual Report and
Accounts
•
External Auditor’s year-end report
• Going concern analysis
•
•
•
Viability statement
Fair, balanced and understandable
review
Judgemental and accounting
issues
• Management letter of
representation
• Confirmation of External Auditor’s
independence
Risk and Internal Control
•
Internal audit update
Compliance
• Review of litigation register
• Meeting with External Auditor
without Executive Directors
• Meeting with Head of Internal
Audit without Executive Directors
External Auditor
•
External Auditor effectiveness and
rigour survey
Review of Financial Statements
Accounts process
• Draft interim report
•
Judgemental and accounting issues
• Going concern analysis
Risk and Internal Control
•
Internal audit update
• Risk review and confirmation of
principal and emerging risks
Risk and Internal Control
•
Internal audit update
• Approval of internal audit plan
for 2022
• Risk review and confirmation of principal
and emerging risks
• Annual review of anti-bribery compliance
• Review of Group insurance renewal
External Auditor
External Auditor
• Audit progress update report
•
External Auditor’s interim review
Compliance
• Scope of the full year audit
• Year-end legislative and procedural
•
Interim review of management letter
of representation
• Non-audit fees review
Compliance
• Meeting with Head of Internal Audit
and External Auditors without
Executive Directors
• Review of litigation register
matters
•
Terms of reference review
• Annual Committee evaluation
Tax and Treasury
• Review of tax strategy
• Review of Treasury policy
Compliance
• UK Corporate Governance Code
compliance
Annual Report and Accounts 2021 89
90
Significant accounting issues and areas of judgement
The Committee focuses in particular on key accounting policies and practices adopted by the Group and any significant areas of
judgement that may materially impact reported results as well as the clarity of disclosures, compliance with financial reporting
standards and the relevant requirements around financial and governance reporting. Details on accounting policies can be found on
pages 131 to 137.
The significant issues and areas of judgement considered by the Committee during the year and how these were addressed were
as follows:
Significant issue
How the Committee addressed the issue
Revenue
Recognition
Context: Revenue recognition for permanent and temporary placements, with particular focus on period
end cut off and appropriate accounting treatment in accordance with IFRS and Group accounting policies.
Revenue from permanent placements is derived from both retained assignments (income recognised
on completion of defined stages of work) and non-retained assignments (income recognised at the date
an offer is accepted by a candidate and where a start date has been determined). There is a risk that a
candidate reverses their decision to take up a placement before the start date and as such the revenue
recognised would be reversed. A provision is made by management, based on past historical experience,
for the proportion of those placements where this is expected to occur. Revenue from temporary
placements, which represents amounts billed for the services of temporary staff, including the salary cost
of these staff, is recognised when the service has been provided.
Actions taken: As in previous years, the Committee assesses the Group's revenue recognition policies
relative to IFRS and the sector to ensure they are appropriate, and challenges management on the internal
control and compliance processes over revenue recognition, taking into account the views of Internal
Audit and the External Auditor. The External Auditor explained to the Committee the procedures they
performed to address revenue recognition, including the procedures performed around period-end cut-off
and assessment of the provision recognised in respect of expected revenue reversals. On the basis of their
audit work, the External Auditor concluded that the revenue recognised in 2021 is materially in accordance
with the Group’s revenue recognition policy and IFRS, and the provision for expected revenue reversals is
materially appropriate.
Conclusions and rationale: The Committee concluded that the approach to revenue recognition was
consistent with the policies and the judgements made were appropriate.
External Auditor’s
independence and
effectiveness
The Committee monitors the objectivity,
independence and effectiveness of
the External Auditor. The Company is
mindful of the provisions of the Code,
best practice, the Competition and
Market Authority Audit Order 2014 and
audit legislation in particular as regards
audit firm rotation and the provision of
non-audit services.
Ernst & Young LLP (“EY”), the
Company’s current External Auditor,
was first appointed in 2011. In
accordance with audit regulation, EY
operates a policy of rotating the Audit
Partner every five years. Joe Yglesia is
the new lead Audit Partner responsible
for the Full Year 2021 Audit. Joe
Yglesia took over lead Audit Partner
responsibilities following the completion
of the 2020 Audit.
The Committee operates a policy for
the tender of external audit services.
This policy provides that in accordance
with applicable law and regulation, the
Company will re-tender the external
audit at least every ten years and will
change the External Auditor at least
every 20 years. The Committee held
a competitive tender of external audit
services last year. Following a rigorous
process described in detail in last
year’s Annual Report and Accounts, EY
was successful in the tender process.
The Company confirms that it has
complied with the provisions of the
CMA‘s Statutory Audit Services for
Large Companies Market Investigation
(Mandatory Use of Competitive Tender
Processes and Audit Committee
Responsibilities) Order 2014 for the
financial year under review.
In accordance with the FRC’s revised
Ethical Standard 2019, the Committee
reviewed all non-audit services to
ensure the non-audit services are
closely linked to the audit itself or
required by law or regulation. The total
non-audit fees in respect of non-audit
services for the year under review
amounted to c. £7k. These non-audit
fees related to certifying revenue in the
Netherlands for local filing requirements
and factual reporting on revenue and
payroll expenses required for the French
business and were services typically
undertaken by the statutory auditor.
EY also performed interim review
procedures in respect of the half-year
results which amounted to £52k. EY’s
audit fee for the year was £1.2m.
The Committee reviews regularly the
objectivity and independence of the
External Auditor and has concluded this
is safeguarded by:
• Obtaining assurances from the
External Auditor that adequate
policies and procedures exist
within its firm to ensure that the firm
and staff are independent of the
Group by reason of family, finance,
employment, investment and
business relationship (other than in
the normal course of business);
•
Enforcing a policy of reviewing all
cases where it is proposed that a
former employee of the External
Auditor be employed by the Group
in a senior management position or
at Board level;
• Monitoring the External Auditor’s
compliance with applicable UK
ethical guidance on the rotation of
audit partners; and
• Approving non-audit services
prior to being undertaken by the
External Auditor.
The quality, performance and
effectiveness of the External Auditor is
reviewed annually by the Committee.
This covers the quality of robust
challenge provided by the audit team
in the centre and of key components of
the audit and the level of expertise and
resources applied to the audit. It also
provides assurance that there are no
issues which could adversely affect the
auditor’s independence and objectivity.
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Audit Committee Report
The Committee reviews the:
• Robustness of the External Auditor’s
plan and its identification of key risks;
• Approach to and execution of the
agreed plan;
• Robustness (including the audit
team's ability to challenge
management) and perceptiveness of
the External Auditor in handling key
accounting and audit judgements
including demonstrating professional
scepticism and independence;
• Quality and content of reports
provided to the Committee by the
External Auditor including reporting
on internal control;
•
Feedback from management which
is ascertained from staff surveys
completed by staff involved in the
audit process; and
• Communications in and outside
of meetings, between the External
Auditor and the Committee.
The Committee considers the planned
scope of assurance provided across the
Group on an annual basis to consider
whether changes are required to continue
to obtain the necessary level of assurance.
For example, the Committee reviewed
the planned scope of assurance received
in relation to the Group’s Latin American
operations across internal, external and
other sources of assurances. Accordingly,
refinements were made to the scope.
Internal control and risk
management
The Board’s responsibilities for, and
their report on, risk management and
the systems of internal control and their
effectiveness are set out in the Corporate
Governance Report on page 83.
On behalf of the Board, the Audit
Committee undertakes a robust
assessment of principal and emerging
risks. This involves reviewing the Group’s
risk assessment procedures and risk
registers and its longer-term viability.
The risk assessment takes account
of all top down and aggregate risk
and presents the effectiveness of the
controls to mitigate the principal risks of
the business, including environmental,
social and governance matters, inherent
in the strategy of the business and its
plan. The risk assessments consider the
level of gross risk to the business, the
effectiveness of controls in mitigating
those risks and the resulting net risk level.
If the net risk level is above the Group’s
risk appetite, management develop further
remedial action plans.
There are processes across the Group
to consider emerging risks. Within our
Group operational risk assessment and
reporting process cycle, twice per annum
management are formally required to
consider and disclose any emerging
risks. These are reviewed at a Group level
together with a top down perspective
gained from discussion with senior
management. In addition, our internal
audit programme reviews the basis of risk
submissions with local management for
principal risks, including any emerging
risks. The principal risk reports are
independently reviewed with the External
Auditor to identify the potential risks that
the Group should be considering and
anticipating. In 2021, given the continued
travel restrictions for much of the year,
the Internal Audit team have continued
to utilise technology to carry out their
audits remotely. The internal independent
assessment report showed no diminution
in quality of Internal Audit services and
assurance.
The 2021 risk review identified that
global economic risk has reduced given
the improvement in economic growth
forecasts and financial results of the
Group in many of the markets that the
business operates within. Ensuring the
retention of our people was identified
as an increasing risk given the tight
recruitment market during the year
although our overall risk remains stable
due to our work around wellbeing for our
people. In terms of emerging risks, climate
change remains an emerging risk and a
sustainability report and framework has
been established to help monitor this risk
more effectively. Full and further details of
the Group’s principal and emerging risks
and the areas of mitigation can be found
on pages 51 to 58.
The Company’s risk review procedures
include regular reports to the Committee
from the Director of Internal Audit on the
performance of the system of internal
controls and on its effectiveness in
managing material and emerging risks
and identifying any control failings or
weaknesses.
The Committee reviews the Group’s risk
management process annually, with the
outcome being reported to the Board.
This, together with regular updates to the
Board on material risks, allows the Board
to make the assessment on the system
of internal controls and the residual risks
for the purpose of making its public
statement. The risk process, together with
the key risks and their indicators, have
been identified and mitigating actions
are described in the Strategic Report
on pages 57 to 58. Key performance
indicators are highlighted for the main
financial, strategic and people risks in the
Strategic Report on pages 21 to 24.
Where weaknesses have been identified
in the system of internal controls for the
mitigation of risks to an acceptable level,
plans to strengthen the control system are
put in place. Action plans in this respect
are regularly monitored until complete.
During the period under review there were
no control failings or weaknesses that
resulted in material losses.
Internal audit activities
The Group’s Internal Audit function
comprises a Director of Internal Audit and
a team of internal auditors and we have a
co-source agreement in place with a third
party internal audit provider. The Director
of Internal Audit reports to the Audit
Committee and works with the CFO and
CEO to determine priorities. He also has
direct access to the Committee and
the Board. This ensures there is
opportunity for frank and open
dialogue. The Director of Internal Audit’s
remuneration is determined by the Chair
of the Committee in consultation with the
Group Chief Financial Officer to ensure
independence.
The scope of work for the Internal Audit
function is agreed with the Committee
annually with the findings from internal
audits being reported to the Executive
Board and the Audit Committee.
Businesses are audited on a rotational
risk-based approach to assess the
effectiveness of controls to mitigate
risks to an acceptable level. All major
risks are addressed in this process,
including Group functions and change
programmes as are those around
governance, environmental and social
related matters. Actions to maintain and
improve the effectiveness of the control
environment are agreed with the Executive
Board and are monitored and reported to
the Committee. Risks are also regularly
reviewed and required changes are made
to the risk profile and, where necessary, to
the activity of Internal Audit. All changes to
the Internal Audit plan are agreed with the
Chair of the Committee and reported to
the Executive Board and the Committee.
Committee evaluation
The activities of the Committee were
reviewed as part of the Board and
Committee evaluation process. The
2021 evaluation was carried out via a
combination of targeted survey questions
Annual Report and Accounts 2021 91
92
with the facility for anonymous
responses. This was supported with
individual discussions with Directors.
The Committee’s performance was
assessed across the range of work
it oversees including effectiveness in
reviewing and assessing the work of
the internal and External Auditors,
risk identification and management
and the Group’s system of internal
controls. The review also examined
the Committee’s oversight of financial
reporting. The responses show that
the Committee is considered to have
operated effectively throughout the
year. Priorities for the upcoming year
include the continued close monitoring
of risk and emerging risks, and ensuring
readiness for the requirements of new
audit and governance reform. Further
details of the outcome of the Board
and Committee evaluation process can
be found in the Corporate Governance
Report on page 82.
This year’s evaluation process
was undertaken internally, and
was facilitated externally in 2019.
Accordingly, in line with the
requirements of the Corporate
Governance Code, the review will be
facilitated externally in 2022.
Fraud
The Committee reviews the procedures
for the prevention and detection of
fraud in the Group. Suspected cases
of fraud must be reported to the Chief
Financial Officer and the Director of
Internal Audit and investigated by
operational management and Internal
Audit. The outcome of any investigation
is reported to the Committee. A register
of all suspected fraudulent activity and
the outcome of any investigation is
kept and is circulated to the Committee
on a regular basis. During the year in
question, no frauds of a significant or
material nature were reported.
Anti-bribery and corruption
and business ethics
The Company has a Code of Conduct
which can be found on its website
www.page.com. This sets out the
standards of behaviour by which all
employees of the Group are bound
and is based on the Company’s
commitment to acting professionally,
fairly and with integrity.
The Group maintains a zero tolerance
approach against corruption. It has
an established anti-bribery and
corruption policy, which includes
guidance on the giving and receiving
of gifts and hospitality. This policy
applies throughout the Group and is
complemented by anti-bribery and
corruption training. In order to capture
any concerns that employees or
external parties may have in relation
to bribery and corruption, the policy
highlights internal contacts who can
assist in any queries surrounding gifts
and hospitality or concerns around
bribery and corruption. The gifts and
entertainment register is reviewed by
the Committee to ensure transparency.
A review of compliance with the policy
is undertaken annually and reported to
the Committee. The review undertaken
in 2021 showed there was a good
understanding of the issues and no
breaches were reported. Additionally,
the Company operates a global “Speak
Up” helpline and actively promotes its
use for any ethical matters.
Ben Stevens
Audit Committee Chair
2 March 2022
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Directors’ Remuneration Report
2020 was nonetheless a significant
headwind for earnings and so despite
robust earnings delivery in 2019 and
record performance in 2021, the
business fell short of the cumulative
EPS threshold target for the three-year
period of 2019-21 (109.7p).
Despite the promising performance
relative to peers, the Committee
recognises the overall absolute
shareholder experience over the 3 year
performance period and therefore no
award has been made under the EPS
element of the ESIP.
What performance achieved
means for reward outcomes
We were happy as a Committee that
the formulaic outcome of the ESIP
generated reward outcomes that
were reflective of the overall business
performance over the period and
therefore did not apply any discretion
to the outcomes. Overall, the ESIP
award for the CEO was 74.4% of
maximum, and for the CFO the outturn
was 74.3% of maximum. In line with
the delivery of the ESIP, 40% of awards
are payable in cash in March following
the end of the performance period. The
remainder is delivered in PageGroup
shares that vest equally on the second
and third anniversaries of the award.
Shares are subject to an additional
effectively. Additionally it enabled us to
learn from external experience and skills
gained in other organisations.
2021 has delivered a record level of profit
for the business, and we monitored the
way that this success has been shared
through the organisation and how
outcomes from variable reward structures
cascaded through the business.
Last year I gave my thanks to all
employees in the business for their
contribution and resilience as we went
through the early stages of COVID-19 and
to Executive Directors, when determining
the incentive outcomes. Again, I wish to
extend my thanks to all employees for the
way they have served customers through
2021, enabling the business to respond
so successfully to the increase in demand
for recruitment services.
Performance delivered in 2021
Full details of performance achieved
against targets is described within the
report and I have summarised this below.
Group level financial performance was a
significant enhancement on 2020 levels.
The recovery from the pandemic gained
momentum which was carried through
to the end of the year. Overall PBT was
a record £166.6m, compared to £15.5m
in 2020. The longer-term trend showed
growth compared to before the pandemic
– growth between 2019 and 2021 was
15.5% and between 2018 and 2021
was 17.1%.
Alongside the delivery of very strong
financial performance in 2021 was delivery
against strategic objectives set by the
Board for each Executive Director. These
were chosen as key activities or initiatives
aligned to our agreed strategy, and both
Executives have delivered excellent
performance against these metrics. Full
details of the targets and associated
outcomes are contained within the
detailed disclosures in this report.
The majority of the ESIP performance
is assessed against longer-term (three-
year) performance, considering both the
absolute performance of PageGroup and
also the relative performance against other
comparator companies within the sector.
The Board was delighted with the success
of the strategy implemented in 2020 to
prepare for a rebound. This was reflected
in the outcome under the relative Gross
Profit measure, where PageGroup’s
performance placed it in the upper quartile
and well above comparator companies in
the recruitment sector.
Angela Seymour-Jackson
Committee Chair
SECTION 1
Dear Shareholder
I am pleased to introduce the Directors’
Remuneration Report for 2021 to
shareholders. After the significant impact
of COVID-19 during 2020 on employees
and business performance, this past
year has seen a healthy rebound and
recovery in most of our markets. This has
been reflected in strong growth and an
excellent headline level of profitability for
the business. It is clear that the strategic
actions taken during 2020 have placed
the business in an excellent position to
respond to resurgent demand.
Ensuring a sense of belonging
for employees
The recovery has been pleasing for all
within the business. The post-pandemic
environment has often led to new ways
of operating for employees and periods
of adjustment rather than a return to
old ways of working. As a Committee
we spent time understanding the wider
employee experience and how employees
viewed the way the business was
responding to COVID and a “different
normal”. We focussed on actions taken by
the business to recognise the contribution
of people who may not be physically
present within our working locations.
This included the steps taken to keep in
touch with people and form connections.
We were reassured through employee
feedback that people working in the
business have a sense of belonging and
are able to fully contribute to business
performance.
Many employees joined us during
the midst of the pandemic, when we
deliberately hired experienced talent into
the business to prepare for a potential
rebound. This decision has proven to
be a good one, enabling us to respond
to customer and candidate demand
Annual Report and Accounts 2021 93
94
two-year holding period if the minimum
shareholding requirement is not in place
at the point of vesting (after allowing for
a number of shares to be sold to settle
any tax liability).
We have disclosed our CEO Pay Ratio
for a number of years, and this value
has changed in line with business
performance, moving from 27:1 in
2020 to 57:1 in 2021. Our strong
performance meant that we made
bonus awards to many individuals
across the business, and many
individuals will have seen material
increases in reward as will be evident
from the detailed disclosure. The
change in ratio is a reflection of the high
relative weighting towards variable pay
for our Executive Directors and other
senior leaders in the business, further
details of which are contained later.
Looking forward to 2022
The ESIP is a robust incentive
structure for the business. It has
delivered appropriate levels of reward
to Executives whilst recognising the
volatile nature of the sector, and
driven alignment of Executives to
the shareholder experience through
shareholding since it was introduced.
We will not be making any material
changes to the overall structure of
the ESIP for 2022, with a continued
balance between annual and longer-
term measures, with the vast majority
of assessment linked to financial
performance. We will continue to review
the effectiveness of the plan, particularly
as part of the review of the Directors’
Remuneration Policy that we will
conduct in 2022 ahead of a vote at the
2023 AGM.
our Sustainability Report. We want to
make it explicit to all stakeholders that
ESG continues to be a high priority
for the business and to demonstrate
progress against the long-term targets
we have stated and committed to
through reward. Further detail of the
way we will do this is provided within
this disclosure.
Recognising ESG within
Reward
In 2020 we published our first
Sustainability Report and highlighted
the four targets we identified where
we believe we can make a material
contribution, aligned to the UN
Sustainable Development Goals
classification.
The importance of Environmental,
Social and Governance (ESG) topics
have been clear to the PageGroup
business for many years. We
have focused heavily on the wider
contribution we can make and the
broader societal role we can play as
a business, acting as a responsible
employer, led by our values.
We have made the decision to align
a specific part of the future ESIP
assessment from 2022 onwards
specifically to ESG (representing 5% of
the total opportunity). This is being done
as a next step from the publication of
Conclusion
I hope this report gives you insight into
the activity of the Committee over the
past year and the way that we have
focused on ensuring alignment between
business performance and reward
outcomes through a very volatile period
for the sector and wider economy
due to the impact of COVID. We have
always looked to ensure an effective
dialogue with shareholders on reward
matters and I look forward to this
continuing in the future.
This is the last opportunity for me
to address shareholders as the
Remuneration Committee Chair as I will
take over as Chair of the Company in
May 2022. I am delighted to have the
opportunity to serve the Board and the
Group in my upcoming new capacity.
Angela Seymour-Jackson
Remuneration Committee Chair
2 March 2022
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 9595
Directors’ Remuneration Report
SECTION 2: AT A GLANCE
What executives were paid in 2021 – Single Figure
BASE SALARY & BENEFITS
STEVE INGHAM
CEO
KELVIN STAGG
CFO
Salary
£639,250
Benefits
£182,071
Salary
£371,800
Benefits
£98,342
ESIP
£1,784,267
Maximum
£2,397,000
ESIP
£897,200
Maximum
£1,208,350
• Salaries were effective from
1 January 2021
• Benefits include a pension
allowance (fixed in value from
2019 to end 2022) originally
based on 25% of base salary
for CEO and 20% for CFO
ESIP
•
•
Final award 74.4% of maximum
for CEO and 74.3% of maximum
for CFO
40% payable in cash, remainder
delivered in deferred shares
vesting on 2nd and 3rd
anniversary of award.
TOTAL
Total
£2,605,588
ESIP
£1,784,267
Base pay
and benefits
£821,321
2021 SINGLE FIGURE
£2,605,588
2020 SINGLE FIGURE
£1,171,194
CHANGE (2020 TO 2021)
+122%
Indicates Maximum Potential
Total
£1,367,342
ESIP
£897,200
Base pay
and benefits
£470,142
£1,367,342
£643,449
+113%
Annual Report and Accounts 2021 95
96
ESIP – 2021 and 2022
ESIP 2021 OUTTURN
• Overall award 74.4% of maximum for CEO and 74.3% of maximum for CFO
ASSESSMENT/WEIGHTING
0%
50%
100%
ACHIEVEMENT FOR CEO/CFO (% MAX)
PBT 2021
(30%)
Strategic 2021
(15%)
EPS (2019 to 2021)
(25%)
0% / 0%
Relative Gross Profit
(2019 to 2021)
(30%)
100% / 100%
96.25% / 95%
100% / 100%
• Opportunity level of 375% of salary and 325% of salary for CEO and CFO respectively results in award of £1,784,267 and
£897,200 respectively.
•
40% of award delivered in cash, remainder in deferred shares released on 2nd and 3rd anniversary of award.
ESIP 2022 STRUCTURE
• Overall opportunity unchanged, CEO 375%, CFO 325%
• More granular linkage to identified targets disclosed within Sustainability Report
PBT
(30%)
Strategic
(15%)
EPS (2020 to 2022)
(25%)
Relative Gross Profit (2020 to 2022)
(30%)
ESG (5%)
Other strategic (10%)
KEY POINTS
• Overall weightings unchanged compared to 2021
• No change to EPS targets previously set and
communicated
• See diagram on page 103 for full operation of the
ESIP for 2022
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 9797
Directors’ Remuneration Report
Key Metrics
SHAREHOLDING BY EXECUTIVES
• Actual holding of 627% of salary for CEO and 798% for CFO against requirement of 200% of salary
Shareholding as percentage of salary – Executive Directors
CEO 2021
CFO 2021
426%
201%
627%
625%
173% 798%
0
200%
400%
600%
800%
1,000%
Ordinary shares
ESIP shares (net)
Minimum shareholding requirement
GENDER PAY
CEO PAY RATIO
Our latest disclosures on Gender Pay can be accessed
through the Company’s website www.page.com.
See page 112 to 113 for more details
Gender Pay Gap
Median
Mean
CEO Pay Ratio
25th percentile Median
75th percentile
As at 5 April 2020
19%
As at 5 April 2019
14%
As at 5 April 2018
16%
19%
19%
21%
2021
2020
2019
88:1
43:1
57:1
27:1
160:1
105:1
37:1
17:1
64:1
SHARE PRICE PERFORMANCE (p)
PROFIT DELIVERY (PBT £m)
700
600
500
400
300
200
100
0
633.5
523
450.8
447.4
31 Dec 2018
31 Dec 2019
31 Dec 2020
31 Dec 2021
200
180
160
140
120
100
80
60
40
20
0
142.3
144.2
167
15
2018
2019
2020
2021
Annual Report and Accounts 2021 97
98
SECTION 3: ANNUAL REPORT ON REMUNERATION
This part of the report has been prepared in accordance with Part 3 of the Large and Medium-sized Companies and Groups
(Accounts and Reports) (Amendment) Regulations 2013. The information on pages 95 to 116 has been audited where required
under the Regulations. The elements of the Directors’ Annual Remuneration Report subject to audit are the:
(a) Single total figure for remuneration and the accompanying notes;
(b) Details of the performance against metrics for variable awards included in the single total figure table;
(c) Details of the ESIP award made in 2021;
(d) Section on outstanding share awards;
(e) Payments to past Directors; and
(f) Payment for loss of office
During the year under review the members of the Committee were Angela Seymour-Jackson, who was Chair of the Committee,
Simon Boddie, Patrick De Smedt, Michelle Healy, Sylvia Metayer and Ben Stevens. Details of the members’ attendance at meetings
of the Committee were as follows:
Director
No. of meetings attended
Angela Seymour-Jackson
Simon Boddie1
Patrick De Smedt
Michelle Healy
Sylvia Metayer
Ben Stevens2
6 out of 6
4 out of 4
6 out of 6
6 out of 6
6 out of 6
6 out of 6
1. Simon Boddie stepped down as Non-Executive Director on 1 September 2021
2. Ben Stevens was appointed as Non-Executive Director on 1 January 2021
Only members of the Committee are entitled to attend meetings. Other individuals, such as the Chairman of the Board, the Chief
Executive Officer, the Chief Financial Officer, the Chief People Officer and external advisers, may attend meetings by invitation when
appropriate.
No Director takes part in discussions relating to their own remuneration. The Committee last conducted a review of its Remuneration
Advisers in 2018 and following a comprehensive tender process appointed PricewaterhouseCoopers (“PwC”) as the advisers to
the Committee. PwC is one of the founding members of the Remuneration Consultants Group and as such adheres to the code
of conduct in relation to executive remuneration consulting in the UK. PwC’s appointment commenced in November 2018 and the
Committee is satisfied the advice received is objective and independent.
The fees paid to PwC in 2021 totalled £80,000. PwC provide unrelated tax advice and mobility services during the year through
separate teams. The Committee is satisfied that these activities do not compromise the independence or objectivity of the advice it
has received from PwC. PwC’s core services are provided on a fixed fee arrangement, with additional items provided on a time and
materials basis.
During 2021 the Committee met 6 times and considered the following topics:
Wider Workforce Consideration
Executive Remuneration
Governance
• Gender pay gap disclosure
in the UK and activities taken
globally to look at fairness of
pay
• Approach to reward and
engagement across the
business, including managing
the impact of COVID-19
• Outcomes of reward for ESIP 2020 and
use of discretion by the Committee
• Drafting of remuneration report for
2021 Annual Report
•
Target setting for operation of ESIP
2021 including determination of annual
targets (strategic and financial)
•
Feedback from shareholders and
shareholder bodies from 2021 AGM
• Update on market trends from
• Consideration of changes to structure
Committee advisor
of ESIP for 2021
•
Forward-looking target-setting for EPS
(for period 2021 to 2023)
• Committee effectiveness evaluation
•
Terms of Reference review
The Committee presented a new Remuneration Policy to shareholders in 2020 which was approved at the Company’s Annual
General Meeting held on 4 June 2020. Full details of the shareholder voting in this respect can be found on page 110.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 9999
Directors’ Remuneration Report
Committee evaluation
The activities of the Committee were reviewed as part of the annual evaluation process which, in 2021, was undertaken internally. The
evaluation was facilitated through a combination of anonymous questionnaires and sessions with Directors conducted by the Chairman and
the process was supported by the General Counsel & Company Secretary. The review included assessing overall Committee performance
(including Committee Chair performance), the effectiveness of the Committee in considering wider workforce remuneration and alignment
of rewards and incentives with Company culture when setting the Executive Remuneration Policy. The quality of the Committee’s advisers,
Committee papers and agendas were also reviewed.
The Committee was considered to be performing strongly and was effective in discharging its responsibilities. For more details about the
Board and Committee evaluation process, see page 82. In line with the requirements of the Corporate Governance Code, the review of the
Committee will be facilitated externally in 2022.
Directors’ remuneration as a single figure (audited)
The tables below report a single figure for total remuneration for each Executive Director for the years ended 31 December 2021 and
31 December 2020.
Salary
£’000
Benefits
£’000
Pensions
£’000
Subtotal
for Fixed
Pay
£’000
ESIP -
Cash
£’000
ESIP -
Deferred
Shares
£'000
Subtotal
for
variable
pay
£’000
Total
£’000
Note 1
Note 2
Note 3
Note 4
Note 4
Steve Ingham
Kelvin Stagg
2021
2020
2021
2020
639
600
372
349
25
24
25
25
158
158
73
73
822
782
470
447
713
0
359
0
1,071
1,784
389
538
196
389
897
196
2,606
1,171
1,367
643
Notes:
1. Salary and fees represent the salary and fees paid in cash in respect of the financial year. Values for 2020 include the voluntary reduction in base salary of 20% taken by each of
the Executive Directors within Q2, consistent with approximately 400 leaders across the business.
2. Benefits represent the taxable value of the benefits provided in the year and comprise a Company car or cash equivalent; fuel; permanent health insurance; medical insurance and
life insurance.
3. Pension includes the cash value of Company contributions to defined contribution pension plans and cash payments in lieu of pension contributions. In line with our Remuneration
Policy, these have been fixed at the level paid in 2019 and will move to align with the rates for the wider workforce from the end of 2022.
4. The ESIP payment is determined using a balanced scorecard of short and long-term performance measures. Under the Policy 40% of the ESIP award is expected to be delivered
in cash and is shown in the “ESIP – Cash” column. The remaining 60% of the ESIP is delivered in deferred shares which vest in future tranches, as shown in the “ESIP – Deferred
Shares” column. In 2020 Executives requested that awards due in cash from ESIP 2020 were instead delivered in deferred shares which was supported by the Committee.
5. Figures rounded up or down to the nearest £1k.
Non-Executive Directors’ remuneration as a single figure
The tables below report a single figure for total remuneration for each Non-Executive Director for the years ended 31 December 2021 and
31 December 2020. Figures for 2020 reflect the temporary reduction in fees agreed during Q2 2020 of 20%.
David Lowden
Simon Boddie
Patrick De Smedt
Michelle Healy
Sylvia Metayer
Angela Seymour-Jackson
Ben Stevens
Year
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Fees £’000s
217
203.1
47.1
66.0
66.3
61.3
56.3
52.7
56.3
52.7
70.3
66.0
61.0
n/a
There were no payments to past Directors or any payments for loss of office during 2021.
Annual Report and Accounts 2021 99
100
Linkage of Company performance into ESIP outcomes
PBT: The Group’s PBT for 2021 was £166.6m against £15.5m in 2020 and £144.2m in 2019. As a result of the pandemic, the
business saw an abrupt downturn in market conditions from early 2020, followed by a strong recovery during 2021.
Strategic Performance: Full details of the strategic objectives set for each Executive Director and the associated performance
against them is shown on pages 101 to 102. Performance has been assessed against the objectives that were set for the
Executives and the formulaic outcome of this process is disclosed within this report.
EPS: Between 2019 and 2021 PageGroup delivered cumulative EPS of 67.6p. Annual EPS achieved over this period was highly
volatile, linked to market conditions experienced as a result of the pandemic. EPS in 2019 was 32.2p, was negative in 2020 and
grew again (from 2019 levels) to a value of 37.2p in 2021. The 2021 outturn represents an equivalent annual growth of 4.9% over
the period from 2019 to 2021 (using the EPS achieved in 2018 of 32.5p as a baseline).
Relative Gross Profit: The Committee determined awards under this metric using all publicly available data as at 14 February
2022 (the date of the respective Remuneration Committee meeting). The peer group contains organisations with different year-
ends with different timings of scheduled public announcements. This was the approach adopted by the Committee when the ESIP
structure (and use of this metric) was decided in 2017 and has been applied consistently since the ESIP has been in operation. This
meant that full data was publicly available for all of the peer group other than two companies (where data through to Q3 was used).
PageGroup delivered upper quartile relative gross profit performance against the peer group resulting in an award of 100% of
maximum for this metric. In two of the three years of the performance period the business had the strongest relative gross profit
growth of the peer group.
Formulaic breakdown of 2021 ESIP (audited)
Performance Metrics
Weighting
Target and Outcome
Achievement (% of max)
Annual Performance Metrics – 2021
Profit Before Tax
30%
Threshold (25% award) =£50m
Award Level 100%
CEO
CFO
Stretch (100% award) = £107.5m
Actual PBT was £166.6m
Strategic Metrics
15%
See breakdown in table overleaf
96.25%
95%
3-year Performance Metrics (Jan 2019 to Dec 2021)
Cumulative EPS
25%
Threshold EPS = 109.7p (25% vesting) through to Stretch
EPS = 132.2p (100% vesting)
Award Level = 0%
Actual EPS = 67.6p
Relative Gross Profit Growth
30%
Based on average growth over the 3-year period compared
to peer group.
Award Level = 100%
Median = 25% vesting through to Upper quartile = Full
vesting
PageGroup Actual = 8.7% growth.
Median was 1.7%, Upper Quartile 4.4%
Overall (% maximum)
74.4%
74.3%
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 101101
Directors’ Remuneration Report
Discretion applied by Committee
The full impact of the pandemic has been seen through the performance period covered by the ESIP, with robust performance in 2019, a
very challenging business environment in 2020 and a very strong recovery during 2021. The actions taken by the business in 2020 have
been shown to have enabled the business to support a strong recovery in 2021.
Overall, the Committee was comfortable that the overall formulaic outcome under the ESIP against targets set represented an award level
consistent with Company performance achieved over the full performance period. It did not exercise any discretion (either up or down) to
this formulaic outcome.
Final Award Calculation and Delivery (audited)
Calculation
Maximum Opportunity (% salary)
Final Award (% of maximum)
Final Award (% of salary)
Salary used for ESIP calculation
Final Award Value
Delivery
CEO
375%
74.4%
279%
£639,200
£1,784,267
CEO
Cash Award (March 2022) (40% of the total award)
£713,707
Share Award in March 2022 of shares to value shown
in table (representing 60% of the award).
£1,070,560
Vesting to occur in March 2024 and March 2025 and
subject to further holding period in event shareholding
guidelines are not met
CFO
325%
74.3%
241%
£371,800
£897,200
CFO
£358,880
£538,320
Strategic targets and outcomes within 2021 ESIP (audited)
CEO – Steve Ingham
Theme
Weighting
Measure
Key Achievements
Achievement
(% of max)
96.25%
Total
Strategic
Market
Development
25%
Measured by increased business in:
• Large, High Potential markets in excess of 40% of the
100%
• Large, High Potential markets
Group in Q3
• Technology discipline
• Page Outsourcing
• Interim and contracting
• Healthcare and Life Sciences
• Technology now our 2nd largest discipline,
representing 12% of the Group, up 52% vs. 2019
• New client wins for Outsourcing, including first wins in
targeted markets (e.g., US)
• Significant growth in key markets: Page Outsourcing,
Healthcare and Life Sciences growth of 84% (all vs
2019)
Productivity
25%
Measured by:
• Customer Connect now live in c. 95% of the Group
95%
• Continued successful roll out of
(end of February 2022)
Customer Connect
• Large productivity increases compared to 2019
• Delivery of productivity improvements
(+17%)
• Development and roll out of PageInsights data and
insights programme
Talent
Development
and Inclusion
50%
Measured by:
• Three new Executive Board appointments during year
95%
• Development of senior team
succession and implementation of any
required needs plan
• Increase in diversity within the senior
leadership team
•
Improvements in global female ratios across all levels
of senior management
* Constant currency growth rates
Annual Report and Accounts 2021 101
CFO – Kelvin Stagg
Theme
Weighting
Measure
Key Achievements
102
Achievement
(% of max)
95%
Total
25%
Strategic
Market
Development
Measured by increased
business in:
• Large, High Potential markets in excess of 40% of the
100%
Group in Q3
• Large, High Potential
• Technology now our 2nd largest discipline, representing
markets
12% of the Group, up 52% vs. 2019
• Technology discipline
• New client wins for Outsourcing, including first wins in
• Page Outsourcing
• Interim and contracting
• Healthcare and Life
Sciences
targeted markets (e.g., US)
• Significant growth in key markets: Page Outsourcing,
Healthcare and Life Sciences growth of 84% (all vs 2019)
Productivity
25%
Measured by:
• Customer Connect now live in c. 95% of the Group (end of
95%
• Continued successful roll
out of Customer Connect
February 2022)
• Large productivity increases compared to 2019 (+17%)
• Delivery of productivity
• Development and roll out of PageInsights data and insights
improvements
programme
Talent
Development
and Inclusion
25%
Measured by:
• Strengthening of finance team during the year
90%
• Strengthening of the
Finance team
•
Increased gender diversity with 2 female promotions to MD
level
• Increase in diversity within
• 4 external hires and 2 promotions of females to Director
the Finance team
level
• Multiple hires to strengthen global tax and legal teams
Cost Control
25%
Measured by:
• Strong management of costs during year
95%
• Demonstrated long-term
• New shared service centre in Manilla
cost efficiencies
• Global P2P headcount down 1, transactions processed up
• Positive returns on
64%
investments in operations
and support functions
• Automation now running over multiple R2R processes
* Constant currency growth rates
Change in Board’s remuneration compared to other employees
The following table shows the percentage change in the annual remuneration of Directors from 2019 onwards as well as a
comparator number showing the average percentage change for employees (excluding Directors) of the listed parent company
on a full-time equivalent (FTE) basis.
Change in Salary / Fees
Change in Benefits 2
Change in Annual Cash Incentive
2021 vs 20201
2020 vs 2019
2021 vs 2020
2020 vs 2019
2021 vs 2020
2020 vs 2019
Steve Ingham
Kelvin Stagg
Patrick De Smedt
Michelle Healy
David Lowden
Sylvia Metayer
Angela Seymour-Jackson
Ben Stevens
6%
6%
8%
7%
7%
7%
7%
n/a
Wider PageGroup employees3 6%
(5%)
(5%)
(5%)
(5%)
(5%)
(5%)
(5%)
n/a
(5%)
(1%)
(90)%
not calculable
(100%)
0%
n/a
n/a
n/a
n/a
n/a
n/a
0%
0%
n/a
n/a
n/a
n/a
n/a
n/a
0%
not calculable
(100%)
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
not calculable
(100%)
1. Wider PageGroup employees represents average UK increase. The increases for the Executive Directors between 2020 and 2021 reflect the voluntary waiver of 20% of
salary during Q2 2020. The increase in contractual salary levels from 2020 to 2021 was 1.5% for each Executive.
2. Excludes pensions. As outlined in previous remuneration disclosures, the value of pension contributions payable to each Executive has been set at a fixed level (based
on that received in 2019) before moving to a level equivalent to the wider workforce from the end of 2022.
3. This shows the contrast of changes of reward elements between 2019 and 2021. The wider PageGroup employees reflects all employees of Michael Page International
Recruitment Limited as at 31 December 2021. Calculations have been derived on a full-time equivalent (FTE) basis to enable effective comparison.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information
103103
Directors’ Remuneration Report
What the Executive Directors can earn in 2022
The structure of remuneration for 2022
will consist of the following elements:
Benefits – No changes to benefits
provided compared to 2021.
to our UK workforce from
1 January 2023.
Salary – Base salaries were reviewed
with reference to the level of salary
increases agreed for the wider UK
population which was 3%. Annual
salary levels for the CEO will increase
to £658,400 and the CFO to £383,000
effective 1 January 2022.
Pensions – As outlined in our
Remuneration Policy agreed in June
2020, pensions were fixed at the
absolute level paid to executives in
2019 and paid monthly alongside
salaries. For the CEO this equates to an
annual value of £157,450 and for the
CFO £73,260. This approach applied in
2021 and 2022 with allowances aligned
ESIP – The core operation of the ESIP
will be unchanged for 2022. We are
making some changes to the way
we set and assess strategic metrics
to strengthen the alignment to ESG
metrics and targets disclosed on our
Sustainability Report. Further detail is
shown below and discussed in more
detail within this disclosure.
ESIP 2022 OPERATION
ESIP 2022 - SINGLE PLAN
Assessment
OPPORTUNITY CEO = 375%, CFO = 325%
Delivery
2020
2022
2023
2024
2025
2026
2027
Proposed Measures, Weightings
and Time Period
PBT (30%)
Strategic (15%)
EPS (2020 to 2022)
(25%)
Relative Profit
(2020 to 2022) (30%)
40% of award
in cash
60% of award
in deferred
shares
Dividends
Cash
paid
Under the single plan dividend equivalents will accrue
in respect of any shares deferred but not yet released.
Dividend equivalents are paid, in accordance with the
rules, at the time of vesting.
Half of
shares vest
holding period*
Half of
shares vest
holding period*
deferred
deferred
* Holding Period
Vested shares have to be held for further two years if the shareholding
guidelines have not been met at point of release (except for sales to meet
a resulting tax liability)
Breakdown of Strategic Element
Weighting
Against assessment of our four stated targets within our Sustainability Report linked to UN Sustainable Development Goals
5%
Assessed against other key strategic goals identified by the Board and linked to business strategy. These may differ by
Executive Director. Targets will be disclosed retrospectively alongside the associated performance achieved
10%
Relative Gross Profit growth
Assessed against comparator group: Current list of companies: SThree, Robert Half, Randstad, Robert Walters, Adecco, Hays,
Manpower
Performance range: Below median = no award. Median = 25% of award through to 100% of award for upper quartile
performance.
In the event of material change of one of the companies within the comparator group (e.g., due to M&A activity) the Committee
retains flexibility to adjust the peer group with a stated desire to capture organic growth only.
Measurement in constant currency.
Annual Report and Accounts 2021 103
104
Reflecting ESG within reward
We have discussed the increasing prominence of ESG and growing expectation of us being able to describe our actions against
this specific terminology to our stakeholders (including employees). In considering any changes to the way this is reflected within
reward we made the following observations:
How is ESG seen within PageGroup now?
What are we looking to reinforce through reward
• ESG themes have been reflected in the way the business has operated
• That the targets identified and communicated through our
for many years and aligned to our Company values
• We have the ability to make a broad societal contribution and to make a
difference through what we do
• These areas are not new but include areas where PageGroup has an
established track record – especially linked to diversity and inclusion
Sustainability Report represent a balanced set of priorities for the
business
• That we want a simple route to monitor overall progress towards
these targets, and encourage faster progress where it is feasible
to achieve this
• That these areas are key to our stakeholders and expected of us,
including from our candidates and employees
Therefore, in finalising our approach we made the following decisions:
Decision
Rationale/Explanation
1
2
3
4
To ringfence part of the ESIP assessment to align to
specific ESG targets (5% of the current 15% aligned to
strategic metrics).
• This is designed to align reward outcomes with the journey and priorities
described within our Sustainability Report. The four metrics link back to
specific UN Sustainable Development Goals and are key areas where
PageGroup can make a positive contribution.
To use existing targets identified and communicated
within our Sustainability Report.
• These are externally disclosed, with granular reporting each year, evidenced by
business actions or outputs.
To assess at the end of each year by the Committee,
forming an overall assessment of progress against the
four targets in determining the award (out of 5%).
• This represents a balanced portfolio of things important to the business, but
additionally areas where the business feels it can make a material societal
contribution. As an example, while recognising the importance of carbon
reduction, we are a relatively low emission organisation and believe we can
make a proportionately larger contribution in some other areas such as the role
we can make in helping potential future candidates prepare for employment in
the future, such as through CV and interview workshops.
• We want Executives (and all employees) focused on collective actions against
targets identified.
• We believe progress should be demonstrated by clear disclosures against the
long-term targets set, but do not believe this should be broken down into a
series of annual measures.
• Maximum awards would indicate very robust progress during the year, and that
the overall likelihood of target attainment at the end of the year was higher than
at the start (i.e. activities and progress achieved during the year mean greater
probability of target success). Similar levels of likelihood (i.e. demonstrable
progress) would expect to lead to awards around the 3% level.
To continue to retain flexibility to have other “ESG” type
metrics within the remaining 10% aligned to strategic
metrics.
• To enable us to use strategic metrics to drive key activities or initiatives within
the business in pursuit of business strategy. These could include other goals
that sit naturally under an ESG categorisation, but would not represent a
duplication of the four targets used within the Sustainability Report.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 105105
Directors’ Remuneration Report
EPS targets – approach and application
We look to set EPS targets at the start of the respective 3-year performance period. Outlined below are all the EPS targets that have been
set by the Committee for the ongoing operation of the ESIP.
ESIP Scheme
EPS Period
Agreed Cumulative EPS Range (p) Equivalent Annual Growth %
Notes
ESIP 2020
January 2018 - December 2020
88.3p - 106.1p
ESIP 2021
January 2019 - December 2021
109.7p - 132.2p
ESIP 2022
January 2020 - December 2022
106.6p - 128.6p
5.4% to 15.1%
6.0% to 16.0%
5.0% to 15.0%
As included
within
previous
remuneration
disclosures
ESIP 2023
January 2021 - December 2023
48p - 72p
Not applicable due to negative EPS in 2020
As disclosed in last year’s Directors’ Remuneration Report, for the operation of the ESIP for 2022 and beyond (assessment of EPS
beginning on 1 January 2020) the EPS calculation will be determined on a constant currency basis.
EPS target for Jan 2022 – Dec 2024
We have now set targets for EPS for the period 2022-2024 which will operate with a performance range representing annual growth of 5%
at threshold to 15% at stretch. We will measure performance on a “point to point” basis for the period 2022 to 2024 and beyond, moving
away from the cumulative performance adopted in prior years. Therefore, the calculation will compare the EPS achieved in 2024 against
that delivered in 2021 to derive the equivalent annual growth achieved over the period.
The performance range was determined based on assumptions around future trading performance and having considered the range of
expectations that exist and the planned trajectory over the medium term. Having reviewed the impact of 2020 EPS performance against a
series of cumulative EPS targets in place, we believe this change in the basis of calculation will drive strong alignment between shareholder
returns and providing incentives for Executives to grow the business through the performance period.
As will be evident from the table above, the forward-looking performance range that has been set on EPS by the Committee has shown
significant volatility over the previous three years. At each point when we have needed to set a target, we have done so considering the
same range of factors and insight, with a desire to set stretching performance ranges with maximum awards for superior performance
over the forward looking 3-year period. We believe the range set for the period 2022-2024 is stretching and appropriately incentivises
Executives to drive the business forward. We do not plan to make any adjustments to range levels (either up or down) or disclosed method
of calculation in respect of ranges previously set and communicated by the Committee.
Fee levels for the Chairman and Non-Executive Directors for 2022
The average salary increase that will be applied for UK based staff from 1 January 2022 is 3%. It was agreed to increase the basic fee for
Non-Executives by this level effective 1 January 2022. The Senior Independent Director fee was increased by £1k from 1 January 2021.
Year ending 31 December 2021
Effective from 1 January 2022
Chairman
Non-Executive basic fee
Additional fees payable
Senior Independent Director
Chair of the Audit Committee
£217,000
£56,300
£10,000
£14,000
Chair of the Remuneration Committee
£14,000
£217,0001
£58,000
£10,000
£14,000
£14,000
1. As previously announced, Angela Seymour-Jackson has been appointed as Chair designate and will take over the role of Chair on 1 May 2022. From 1 May 2022 the Chair fee
will be £225k per annum.
Shares awarded in 2021 (audited)
Conditional awards of deferred shares were made in March 2021 in relation to awards made in respect of the operation of the 2020 ESIP.
Number of shares
awarded
Face value at date
of award
Vesting
Steve Ingham
80,971
Kelvin Stagg
40,815
£388,744
£195,952
Shares vest in two tranches equally on the second and third anniversary of
award, subject to continued employment.
Awards were made on 15 March 2021. The share price used to make awards was £4.801 being the closing share price on 12 March 2021.
The Committee was comfortable that the price used to make awards was appropriate, calculated in line with the ESIP structure and Plan
rules, and represents awards against delivery of performance already achieved by the Executives.
The share price at the start of the year was £4.53 and was £6.34 on 31 December 2021. The low and high share prices during the year
were £4.41 and £6.81 respectively.
Annual Report and Accounts 2021 105
106
Executive shareholding and alignment to the organisation
Details of all outstanding share awards are provided later in the report. Both Executive Directors own shares well in excess of the
200% shareholding requirement as illustrated in the table below. This includes shares awarded but not yet vested under the ESIP.
Shareholding as percentage of salary – Executive Directors
CEO 2021
426%
201%
627%
CFO 2021
625%
173%
798%
0
200%
400%
600%
800%
1,000%
Each Executive has built up shareholding over the previous years as illustrated in the table below.
Shareholding as percentage of salary CEO: Steve Ingham
2021
2020
2019
2018
426%
201%
627%
828%
217%
1,045%
778%
185%
963%
550%
91%
641%
0
200%
400%
600%
800%
1,000%
1,200%
Shareholding as percentage of salary CFO: Kelvin Stagg
2021
625%
173%
798%
2020
359%
359%
187%
546%
2019
255%
162%
417%
2018
111%
113%
91%
194%
0
200%
400%
600%
800%
1,000%
Ordinary shares
ESIP shares (net)
Minimum shareholding requirement
Shareholding Requirement = 200% of salary
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 107107
Directors’ Remuneration Report
Given high levels of share ownership, share price movement leads to a significant variation in the value of share ownership and the
associated percentage of salary that this represents.
Calculated shareholding level
(as % of salary) if share price
were to decrease by 10%
Shareholding as a percentage of
salary at 31 December 2021
(based on share price of £6.34)
Calculated Shareholding level (as
% of salary) if share price were to
increase by 10%
Steve Ingham
Shareholding (As
% of salary)
565%
627% (£4.01m)
690%
Change in
indicative Value
Decrease of £401k
-
Increase of £401k
Kelvin Stagg
Shareholding (As
% of salary)
718%
798% (£2.96m)
878%
Change in
Indicative Value
Decrease of £296k
-
Increase of £296k
Outstanding share awards
This section sets out the share interests of the Executive Directors as at 31 December 2021 under the Executive Single Incentive Plan, the
2009 Share Option Scheme and the legacy Long-Term Incentive Plan.
Steve Ingham
ESIP
Grant Date
15 March 2018
12 March 2019
12 March 2019
13 March 2020
13 March 2020
13 March 2020
15 March 2021
15 March 2021
Total
Number of
shares at
1 January 2021
Granted during
the year
77,636
88,370
88,370
106,983
106,984
106,984
-
-
575,327
-
-
-
-
-
-
40,485
40,486
80,791
Vested
during
the year
(77,636) 1
(88,370)2
-
(106,983)3
-
-
-
-
(272,989)
Lapsed
during
the year
Number of
shares at
31 December 2021
-
-
-
-
-
-
-
-
-
-
88,370
-
106,984
106,984
40,485
40,486
383,309
Vesting
15 March 2021
12 March 2021
14 March 2022
15 March 2021
14 March 2022
13 March 2023
15 March 2023
15 March 2024
1. A sufficient number of shares were sold to cover applicable taxes with the balance of 41,055 shares held
2. A sufficient number of shares were sold to cover applicable taxes with the balance of 46,732 shares held
3. A sufficient number of shares were sold to cover applicable taxes with the balance of 56,574 shares held
Kelvin Stagg
ESIP
Grant Date
15 March 2018
12 March 2019
12 March 2019
13 March 2020
13 March 2020
13 March 2020
15 March 2021
15 March 2021
40,598
44,088
44,088
53,139
53,140
53,140
-
-
TOTAL
288,193
Number of
shares at
1 January 2021
Granted
during
the year
Vested
during
the year
(40,598)1
(44,088)2
-
(53,139)3
-
-
-
-
(137,825)
Lapsed
during
the year
Number of shares
at 31 December
2021
-
-
-
-
-
-
-
-
-
-
44,088
-
53,140
53,140
20,407
20,408
191,183
Vesting
15 March 2021
12 March 2021
14 March 2022
15 March 2021
14 March 2022
13 March 2023
15 March 2023
15 March 2024
-
-
-
-
-
-
20,407
20,408
40,815
1. A sufficient number of shares were sold to cover applicable taxes with the balance of 21,469 shares held
2. A sufficient number of shares were sold to cover applicable taxes with the balance of 23,314 shares held
3, A sufficient number of shares were sold to cover applicable taxes with the balance of 28,101 shares held
Annual Report and Accounts 2021 107
108
Share options
No options granted under The Michael Page 2009 Share Option Scheme remain outstanding at 31 December 2021. Details of
options either exercised or lapsed during the year for Kelvin Stagg are shown in the table below. Steve Ingham does not hold any
options under The Michael Page 2009 Share Option Scheme.
The Michael Page 2009 Share Option Scheme
Executive
Grant date
Number of
options at
1 January 2021
Exercised
during
the year
Lapsed
during the
year
Number of
options at
31 December
2021
Kelvin Stagg
11 March 2011
30,000
-
(30,000)
Kelvin Stagg
12 March 2012
30,000
(30,000)2
-
Total
60,000
(30,000)
(30,000)
-1
-
0
Exercise
price (p)
Exercise
period
491.0
2014-2021
477.0
2015-2022
1. Of the 30,000 Options granted on March 2011, 17,948 lapsed as a result of not meeting the required performance condition. The remaining 12,052 Options were
exercisable but with an Option price above the PageGroup share price in the period between 1 January 2021 and 10 March 2021 when they then lapsed, on the 10th
anniversary of the grant.
2. On 14 October 2021 Kelvin Stagg exercised these Options at a price of £6.782 per option.
Statement of Directors’ shareholdings (audited)
It is the Company’s policy that Executive Directors are required to build and hold a direct beneficial holding in the Company’s
Ordinary shares of an amount equal to two times their base salary. The beneficial interests of the Directors who served during
2021, and their connected persons, in the Ordinary shares of the Company are shown in the table below. The table does not
include interests in shares which are subject to ongoing company performance conditions but does include shares awarded but
not yet vested under the ESIP.
Ordinary shares
held as at
31 December 2021
Unvested Share
Award (ESIP) as at
31 December 2021
% of salary
held 1
Shareholding
guideline
Ordinary shares
held as at
31 December 2020
Executives
Steve Ingham
429,9072,3
Kelvin Stagg
366,912
383,309
191,183
627%
798%
200%
200%
1,165,546
294,028
Non-Executives
Patrick De Smedt
Michelle Healy
-
-
David Lowden
10,000
Sylvia Metayer
-
Angela Seymour-Jackson 915
Ben Stevens
-
Notes:
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
-
-
10,000
-
915
-
1. This uses the closing share price on 31 December 2021 of £6.34 per share and includes unvested shares awarded under the ESIP calculated on a post-tax basis.
The highest and lowest share prices during the year were £6.81 and £4.41 respectively
2. Steve Ingham sold 400,000 Ordinary shares on 20 May 2021 at a price of £6.00 per share.
3. Steve Ingham sold 16,109 shares on 22 December 2021 at a price of £6.30 per share and 463,891 shares on 23 December 2021 at a price of £6.31 per share.
There were no changes in the Directors’ interests between 31 December 2021 and the date of this report.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 109109
Directors’ Remuneration Report
Relative importance of spend on pay
The graph below shows details of the Company’s retained profit after tax, distributions by way of dividend, shares purchased by
the Michael Page Employee Benefit Trust, overall spend on pay to all employees (see Note 4) in the financial statements on page
139, overall spend on Directors’ pay as included in the single figure table on page 99 and the tax paid in the financial year. The
percentage change to the prior year is also shown.
£m
600
500
400
300
200
100
0
26%
553.9
438.0
2020
2021
>100%
118.4
-5.7
Profit after
tax (£m)
>100%
100.2
0
Dividends
paid (£m)
-28%
10.4
14.4
Shares
purchased by
the EBT (£m)
76%
4.3
2.3
17%
37.0
31.7
Overall spend
on pay (£m)
Overall spend
on Directors’
pay (£m)
Tax paid
(£m)
Service contracts and letters of appointment
All Executive Directors’ service contracts contain a twelve-month notice period. The service contracts also contain restrictive covenants
preventing the Executive Directors from competing with the Group for six months following the termination of their employment and
preventing the Executive Directors from soliciting key employees, clients and candidates of the employing company and Group companies
for twelve months following termination of employment. The Remuneration Committee has the right to exercise mitigation in the event
of termination.
Non-Executive Directors, including the Chairman of the Board, are engaged under letters of appointment and do not have service contracts
with the Company. They are appointed for a fixed term of three years, during which period the appointment may be terminated by either
party upon giving one month’s written notice or in accordance with the provisions of the Articles of Association of the Company. There are
no provisions on payment for early termination in the letters of appointment. After the initial three-year term, Directors may be reappointed
for a further term of three years, subject to annual re-election at each year’s Annual General Meeting.
Where any Director’s letter of appointment was renewed during the year they were not entitled to vote on their own appointment.
Copies of the service contracts and letters of appointment are available for inspection during normal business hours at the Company’s
registered office.
Executive Director
Service Contract Date
Unexpired Term
Notice Period
Steve Ingham
31 December 2010
No specific term
12 months
Kelvin Stagg
27 July 2014
No specific term
12 months
Non-Executive Directors
Letter of Appointment/
Reappointment Date
Unexpired Term at 31 December 2021
Patrick De Smedt
13 July 2021
Michelle Healy
2 October 2019
David Lowden
18 July 2018
Sylvia Metayer
5 August 2020
Angela Seymour-Jackson
5 August 2020
Ben Stevens
23 December 2020
1. As previously announced, David Lowden will retire from the Board on 30 April 2022.
31 months
9 months
4 months1
20 months
21 months2
24 months
2. As previously announced Angela Seymour-Jackson will become Chair of the Company on 1 May 2022. A new appointment letter will apply from this date. This appointment letter
has a 36-month term
Annual Report and Accounts 2021 109
110
Statement of voting at the Annual General Meeting
At the Company’s Annual General Meeting held on 4 June 2020, shareholders approved the existing Remuneration Policy. The table
below shows the results of the binding voting on the Remuneration Policy and the advisory vote on the Directors’ Remuneration
Report put to shareholders at the 2021 Annual General Meeting. Each resolution required a simple majority of the votes cast to be in
favour in order for each of the resolutions to be passed.
Resolutions
AGM
Votes For
%
Votes Against %
Votes Withheld
Remuneration Policy
4 June 2020
250,926,751
90.71
25,689,170
Directors’ Remuneration Report
3 June 2021
289,372,372
99.29
2,058,152
9.29
0.71
15,928,893
4,480
Total Shareholder Return
The performance graph below shows the movement in the value of £100 invested in the shares of the Company compared to an
investment in the FTSE 250 index and the FTSE Support Services index over the period 31 December 2011 to 31 December 2021.
The graph shows the Total Shareholder Return generated by the movement in the share price and the reinvestment of dividends.
The FTSE 250 index and the FTSE Support Services index have been selected as the Company was a member of each index
throughout the period. The table below shows the total remuneration of the Chief Executive Officer over the same ten-year period.
CEO
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Single remuneration total
£2,723k
£1,318k
£1,494k
£2,074k
£2,089k
£3,660k
£4,340k
£3,769k
£1,171k
£2,606k
Short-term incentives (% of
maximum) (note 1)
Long-term incentives (% of
maximum)
Executive Single Incentive Plan
(% of maximum)
n/a
n/a
n/a
Notes:
58%
71%
68%
60%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
60%
55.35% 96.1%
96%
n/a
n/a
91%
87.7%
75.4%
16.5%
74.4%
n/a
n/a
1. Prior to 2012 the Company operated uncapped incentives which, by definition, did not have the concept of “maximum”. As a result, it is not possible to provide this
information historically. However, following the changes in 2012 it is possible to provide this information for the years 2013, 2014, 2015 and 2016.
31 Dec 2011 31 Dec 2012 31 Dec 2013 31 Dec 2014 31 Dec 2015 31 Dec 2016 31 Dec 2017
31 Dec 2018
31 Dec 2019
31 Dec 2020
31 Dec 2021
400
370
340
310
280
250
220
190
160
130
100
369.60
301.24
264.73
269.99
263.33
276.87
257.70
241.48
205.03
217.58
209.48
200.01
208.09
167.86
169.20
178.01
187.71
133.33
192.23
175.96
157.59
166.81
162.14
147.02
172.91
163.14
127.10
126.11
124.13
100.0
116.17
External directorships
No Executive Directors earned any fees from external directorships during the year ending 31 December 2021.
PageGroup
FTSE 250
FTSE SS
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 111111
Directors’ Remuneration Report
SECTION 4: REMUNERATION FOR EMPLOYEES BELOW THE BOARD
Our remuneration philosophy is cascaded through the organisation and we focus on rewarding collective achievement and team-based
success. At senior levels we use a combination of shares and cash to achieve this and drive alignment with the business. At more junior
levels variable reward is delivered through cash only.
Overall reward is benchmarked on a regular basis to the respective local market and is linked to skill and experience in role. We offer a
wider range of benefits that evolves over time. This includes Company provided benefits, but also extends to a range of policies to support
work-life balance and wellbeing.
The Company does not formally consult with employees on remuneration matters to consider executive pay or Remuneration Policy design,
but does review information on employee satisfaction with reward throughout the organisation, including results to reward questions from
the “Have Your Say” employee engagement questionnaire which is now run on an annual basis.
Reward across the PageGroup business
We operate within a broad reward framework across the organisation, designed to enable effective progression of talent and grow our own
pipeline of talent for the future. We focus on how we drive team-based behaviours to create better customer relationships to support our
strategy of organic growth.
Employees typically receive salary and a range of benefits driven by local market norms and practice. Most of our employees also have
access to variable pay schemes linked to the success they help create.
Our regular activities to engage with our staff (see page 33) give us valuable insight of our reward offer and areas of reward that are working
and opportunities for change. We discuss our overall approach as a Board and the way that reward may be expected to change as
someone progresses through the organisation.
Base Salary
Salaries are set with reference to the skills and experience of the individual and reflect the local market ranges. The
career journey of the fee earning population enables regular pay reviews on achievement of performance-based
targets which will contribute to the success of the team. For others, salaries are usually reviewed annually and
adjusted in consideration of business affordability, individual performance and local market rates of pay.
Benefits
We operate across a range of countries where we see very different practices in terms of benefit provision. Our
benefits typically include items such as pension provision, life insurance and medical cover. The levels of contribution
or investment in benefits will be driven by local market factors rather than a single global approach.
Variable Pay
The variable pay of the consultant population is primarily driven by team-based incentives designed to drive people
to work collectively. These deliver cash awards which reflect both the performance of the team and the respective
performance of the individual consultant. A small number of consultants work on an individual commission basis
linked to the specific nature of the role they perform.
At a leadership level we also offer deferred cash incentives to drive retention of talent, in addition to the bonus
structures available. At senior leadership levels we provide access to share-based incentives, designed to enable
individuals to build up a holding in Company shares and fully align them to the shareholder experience.
Annual Report and Accounts 2021 111
112
Committee insight and focus
The Committee received an overview of the reward structure in place across the organisation during 2020 and a further update
on any changes during 2021. This is an annual agenda item for the Committee. Subsequent discussion included the following
themes and responses:
Theme
Findings
Linkage of reward with performance
assessment
• All colleagues participate in performance management processes which give clarity over both
what someone is expected to accomplish and how this should be achieved
•
It is achieved through the combination of:
o Goals: expected outputs over the review period
o KPIs: actions and metrics expected in pursuit of the goals
o Behaviours: that should be demonstrated in pursuit of the above
• Specific behaviours are based around defined criteria linked to seniority of role
• Overall attainment is directly linked to awards under variable plans and any future salary
adjustments
Provision of benefits across a global
organisation
• Regular assessments are made of market competitiveness of benefits within our key markets,
using external benchmark data
• Benefits do vary between countries reflecting different market norms
• Any proposed changes to benefits offered is done through engagement with the regional
HR and finance leaders, with proposals reviewed centrally depending on the level of cost
investment
Way that awards under variable pay plans
are governed through the business
• Funding of bonus pools is managed with finance teams with central oversight
• Country leaders make proposals on allocation of bonuses which are reviewed by their
respective managers
• All proposals are collated centrally to review levels of spend and affordability
Alignment to culture and linkage to diversity
and inclusion
• There is a demonstrable cascade of key objectives through the organisation. As an example,
all Managing Directors have designated targets within variable plans requiring progress on key
diversity and inclusion metrics
Ways that the organisation gains insight into
employee satisfaction with reward
• Questions are included within the “Have Your Say” engagement survey (which is now run
annually) linked to pay and benefits and trends tracked over time
• Discussion of reward occurs within many of the existing forums within the business (e.g.,
Female leadership programme and Unity network)
• Pulse surveys and use of internal technology (e.g., Yammer) monitors responses to key
questions and tracks changes
• Engagement sessions with staff members, including those attended by Non-Executive Directors
• Feedback from employees who choose to leave us (gained through exit surveys)
CEO Pay Ratio
This is the third year that we have disclosed the ratio of CEO remuneration to that of our employees in the UK.
CEO Pay Ratio
Calculation Method
25th Percentile
Median
75th Percentile
2021
2020
2019
Option A
Option A
Option A
88:1
43:1
160:1
57:1
27:1
105:1
37:1
17:1
64:1
We believe that the median ratio is consistent with the Company’s wider policies on employee reward, pay and progression.
The increase in the single figure and CEO pay ratio from 2020 to 2021 reflects the higher weighting towards variable reward for
Executive Directors compared to other employees across the organisation and is broken down in more detail on the following page.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information
113113
Directors’ Remuneration Report
Commentary on the ratio
The volatility in the CEO pay ratio over the previous 3 years reflects the volatility of market conditions and derived business performance,
and the greater leverage of reward towards variable pay for more senior people within the organisation, including Executive Directors.
The changes are broken out in more detail below:
Change in CEO Single Figure 2020 to 2021 (£k)
3,000
2,500
£k
2,000
1,500
1,000
500
0
1,396
39
2,606
1,171
Single Figure
disclosed 2020
Change
in benefits
Increase
in salary
Increase in
value of ESIP
Single Figure
2021
Change in CEO reward
Reward Change
Commentary
Change in salary
This represents the change in the CEO salary from 1 January 2021 (+1.5%) which was consistent with the wider workforce.
The value for 2020 included a voluntary waiver of 20% of salary during Q2 of 2020 at the start of the pandemic
Change in benefits
There were no changes in the range of benefits provided between 2020 and 2021
Change in ESIP value
The ESIP award was 20.1% of maximum in 2020 and followed the application of discretion downwards by the Committee to
exclude the formulaic outcome under the strategic objectives. The corresponding award under the ESIP for 2021 was 74.4%
of maximum
Approach and calculation
We have elected to use Option A to calculate the ratio as we believe this gives the most accurate insight into employee pay and benefits
and closest comparison to the CEO single figure value. The reward structure for our CEO is weighted far more towards variable reward
than most of our employees within the UK. Therefore, we expect future changes to this ratio to be linked to changes in variable award
levels under the ESIP and future share price movement.
We also recognise that the earnings profile across our UK employees and that both the mean and median can be useful measures. We
have provided two supplementary ratios for illustration as follows:
Scenario
Resulting CEO Single Figure
Resulting CEO Pay to Median Ratio
CEO “On-Target” Remuneration compared to 2021 UK Median
FTE Reward
£2,260k
CEO single figure compared to UK mean FTE earnings
£2,606k (as disclosed)
49:1
43:1
The employee figures for our UK workforce to calculate the ratios are as follows:
Scenario
Total pay and benefits – 2021
Change on 2020
Total salary 2021
Change on 2020
25th Percentile
£29,700
8.3%
£26,850
3.3%
Median
£45,720
5.7%
£36,000
2.9%
75th Percentile
£71,030
3.4%
£54,450
8.9%
These values are calculated on a full-time equivalent basis as required under the regulations, based on our UK workforce as at 31 December 2021.
Annual Report and Accounts 2021 113
114
SECTION 5: OUR REMUNERATION POLICY
Our Remuneration Policy was approved by shareholders at the 2020 AGM held on 4 June 2020. The Policy is designed to enable
us to attract, retain and fairly reward high calibre Executive Directors and drive meaningful and lasting alignment between achieved
performance and reward outcomes.
Our full Remuneration Policy can be found on our website www.page.com. Central to the Policy is the use of the Executive Single
Incentive Plan (ESIP) as an incentive structure. The ESIP provides a structure that:
•
•
•
•
firmly aligns pay with performance;
recognises the cyclical nature of the industry;
reduces undue volatility to drive performance and retention of executives throughout all stages of the economic cycle; and
ensures that executives build up meaningful shareholdings to align with shareholders.
PageGroup Strategic Priorities
Current ESIP Performance Measures*
Organic, high margin and diversified growth
Annual PBT Performance
Efficiently scalable and highly flexible to react to market
conditions
3-year EPS growth
Gross Profit growth relative to defined peer group
Nurture and develop people
Innovation
*as used for operation of ESIP 2021
Strategic Measures
Strategic Measures
The ESIP structure rewards executives for the appropriate delivery of our strategy and value to shareholders. The Committee
believes this model is an appropriate fit for the PageGroup business – ultimately our key responsibility in considering reward. The
ESIP recognises the cyclical nature of the recruitment sector, and as a way of motivating leaders, drives superior business outcomes
and acts as a retention mechanism through the economic cycle.
Changes made to the operation of the ESIP when the Policy was approved in 2020 included:
•
•
•
•
prospective disclosure of all long-term targets;
extension of vesting period;
increase minimum portion of assessment linked to long-term metrics; and
simplification and consolidation of performance measures.
The ESIP is motivational, trusted by our executives and has subsequently been cascaded to lower levels of leaders within the
business to drive alignment and consistency in the way we operate reward.
It allows us to implement a pay for performance philosophy without undue volatility, drives higher levels of shareholding in the
business and ensures alignment of executives with the experience of shareholders. The phased nature of share vesting further
supports alignment and management of reward volatility.
Our Remuneration Policy aligns with Provision 40 of the UK Corporate Governance Code 2018 as explained below:
Clarity
We actively engage with
shareholders and demonstrate how
their views and perspectives are
considered in the development of
our Policy.
Simplicity
We look to describe the structure of reward clearly to
both participants and shareholders through effective
disclosures. Target documents are issued to executives
each year to ensure clear understanding of the way
reward will be delivered and assessed.
Alignment to culture
The Policy aligns to our business model and
reflects alignment to our strategy. Measures
used to determine awards link to our strategic
priorities.
Predictability
Examples of the range of outcomes
under the Policy are shown within
the scenario graphs.
This demonstrates the way that
different performance levels change
reward outcomes for individuals and
the associated impact of changes in
the Company’s share price.
Proportionality
A significant proportion of the total reward opportunity is
performance driven, with clear linkage between business
metrics and variable reward outcomes.
Metrics for variable awards are key KPI measures
for the business and align to delivery of strategy and
performance against goals set.
A significant proportion of variable awards are delivered
in shares and Executives are required to develop and
maintain a material shareholding in the business to fully
align to the shareholder experience.
Risk
The Committee retains ultimate discretion
to vary outcomes from formulaic results if
they do not judge this to accurately reflect
underlying business performance.
Malus and Clawback provisions apply to
all awards and we operate post-cessation
shareholding requirements to further
align executives to long-term business
performance.
A summary of our Policy is provided on the following pages.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 115115
Directors’ Remuneration Report
Executive Directors’ Policy
Base Salary
Benefits
Pension
Incentives
Shareholding
Purpose
Attract, retain and
reward high calibre
Executive Directors.
Operation
Salary levels (and
subsequent increases)
are set after reviewing
various factors including
individual and Company
performance, role and
responsibility, internal
relativities such as the
increases awarded
to other employees
and prevailing market
levels for Executive
Directors at companies
of comparable status
and market value,
considering the total
remuneration package.
Salaries are normally
reviewed annually.
Salary is paid monthly,
and increases are
generally effective from
1 January.
Attract, retain
and reward high
calibre Executive
Directors. Provision
of opportunities for
connecting with clients,
investors and staff to
facilitate growth strategy.
Competitive benefits
including car allowance
or Company car
(including running
costs), private medical
insurance for the
individual and family,
permanent health
insurance and four times
salary life assurance.
Provision of relocation
assistance and any
associated costs or
benefits (including but
not limited to housing
benefits, personal tax
advice and school fees)
upon appointment if/
when applicable. The
Company may also
provide tax equalisation
arrangements.
Attract, retain
and fairly reward
high calibre
Executive
Directors.
Rewards both short and
long-term performance. Aligns
interests of Executive Directors
with shareholders.
To align Executives to
Company performance
through meaningful
levels of mandatory
shareholding. Post-
cessation Policy
to align executives
beyond termination of
employment.
Executive
Directors
may receive
a defined
contribution
pension
benefit or cash
supplement.
Awards are paid in cash
(40%) and deferred shares
(60%) vesting at defined future
dates subject to continued
employment.
Shareholding requirements
are operated to align
Executive Directors’
interests with those of
shareholders.
The current requirement is
200% of base salary.
A new post-cessation
shareholding policy will
require leavers to hold
2x salary for the first
12 months post cessation
and 1x salary for the
subsequent 12 months.
The plan consists of metrics
linked to annual performance
only, and other metrics that
consider performance over a
3-year period. At least 50%
of any award will depend on
assessment against longer-
term metrics.
Performance will be measured
against a balanced scorecard,
to support the Company’s
strategy. Performance targets
will be a mix of financial and
strategic targets which may
comprise, but are not limited to,
the following: PBT; key strategic
projects; people development;
cost management; relative
Gross Profit vs a comparator
group; and EPS. A maximum
of 25% vesting will apply for
threshold performance.
A post-vesting holding period
applies. Directors who have
not reached the shareholding
requirement of 200% of base
salary will be required to hold
vested shares from each
tranche of the ESIP for a further
two years post-vesting, except
for sales for the purposes of
meeting tax liabilities on vesting
and exercise.
A minimum of 80% of the
possible award will normally be
linked to financial metrics.
Dividend equivalents accrue
during the vesting period
but are only released to the
extent awards vest. Malus and
clawback provisions will apply
to the total award, including
cash and deferred portions, for
misstatement of performance,
substantial failure of risk control,
and gross misconduct.
Annual Report and Accounts 2021 115
116
Executive Directors’ Policy Table (continued)
Base Salary
Benefits
Pension
Incentives
Maximum Salaries will not normally
increase by more than RPI +5%
except increases in excess of
this may be awarded in the
case of new Executive Directors
where it is appropriate to offer
a below market salary initially
on appointment and a series
of staged increases, subject to
performance and experience
in role, to bring to a market
competitive salary. Aim for
market competitive salaries.
Competitive benefits
in line with market
practice.
New appointments at the
Executive Director level will
receive a cash allowance
in line with the wider UK
workforce.
Maximum award for
CEO = 375% of salary.
Maximum award for
CFO = 325% of salary.
Pension contribution levels
for incumbent Executive
Directors were frozen at the
level received in 2019 through
to the end of 2022 and then
aligned to the prevailing rate
of the wider UK workforce
from 1 January 2023.
Non-Executive Directors’ Policy
The Board Chairman and Non-Executive Directors receive a fee for their services and do not receive any other benefits from the
Group, nor do they participate in any of the bonus or share schemes. The fees recognise the responsibility of the role and the time
commitments required and are not performance related or pensionable. They are paid monthly in cash and there are no other
benefits.
Non-Executive Directors, including the Chairman of the Board, are engaged under letters of appointment and do not have service
contracts with the Company. They are appointed for a fixed term of three years, during which period the appointment may be
terminated by either party upon one month’s written notice or in accordance with the Articles of Association of the Company.
There are no provisions on payment for early termination in the letters of appointment. After the initial three-year term, they may be
reappointed for a further term of three years, subject to annual re-election at Annual General Meetings.
Element
Purpose and Link to Strategy Operation
Maximum Opportunity
Fees
Attract, retain and fairly reward
high calibre individuals.
The maximum aggregate
fees for Directors allowed
by the Company’s Articles
of Association is £1m.
Current fee levels are set
out in the Directors’ Annual
Remuneration Report.
Reviewed by the Board after recommendation by
the Chairman and Chief Executive Officer (and
by the Committee in the case of the Chairman)
considering individual responsibilities, such as
Committee Chairmanship, time commitment,
general employee pay increases, and prevailing
market levels at companies of comparable status
and market value. Fee increases are normally
reviewed annually and are generally effective from
1 January.
Non-Executive Directors also receive
reimbursement of reasonable expenses incurred
in connection with Company business and the
Company may settle any tax incurred in relation
to these.
The Directors’ Remuneration Report has been approved and signed on behalf of the Board of Directors.
Angela Seymour-Jackson
Remuneration Committee Chair
2 March 2022
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 117117
Directors’ Report
Kaye Maguire,
General Counsel & Company Secretary
Likely future developments ...................................................................2
Policy on disability ................................................................................118
Employee engagement and
stakeholder consideration ........................................... 27-38 and 61-65
Greenhouse gas emissions and
energy consumption ........................................................................ 45-46
Directors’ interests ....................................................................... 107-108
Share capital and acquisition of own shares .........................................117
Directors’ disclosure of information to the
auditor in respect of the audit ...............................................................120
Directors’ Responsibility Statement ......................................................120
Going concern .......................................................................................59
Viability Statement ............................................................................ 59-60
Appointment and replacement of
Directors ................................................................................................83
Powers of Directors ..............................................................................119
Share capital and shareholder rights
– Restriction on transfer of shares .....................................................119
– Rights attaching to shares ..............................................................119
– Restrictions on voting .....................................................................119
– Details of employee share schemes ....................................... 152-154
Subsidiary and associated undertakings
and branches ............................................................................... 144-149
The Directors present their Report together with
the consolidated financial statements for the year
ended 31 December 2021.
Certain information that fulfils the requirements
of the Directors’ Report can be found elsewhere
in this document as noted in the table opposite.
This information is incorporated into this Directors’
Report by reference. Pages 79 to 92, 117 to 120
and 160 also comprise the Directors’ Report for
the year ended 31 December 2021.
Directors
The Directors who served throughout the year
were David Lowden, Patrick De Smedt, Steve
Ingham, Michelle Healy, Kelvin Stagg, Sylvia
Metayer, Angela Seymour-Jackson and Ben
Stevens. Simon Boddie retired from the Board
on 1 September 2021 having served nine years.
Results and dividends
The results for the year are set out in the
Consolidated Income Statement on page 127.
An analysis of revenue, profit and net assets by
region is shown in Note 2 on pages 137 to 138.
As a result of the global pandemic, the Board
suspended the Company’s dividend policy
in 2020. Improvements in trading conditions
enabled the Board to reinstate dividends and
an interim dividend for 2021 of 4.70 pence
per Ordinary share was paid on 13 October
2021 and a special dividend of 26.71 pence per
Ordinary share was also paid on 13 October
2021.
The Directors recommend the payment of a final
dividend for the year ended 31 December 2021
of 10.30p per Ordinary share on 17 June 2022
to shareholders on the register of members on
20 May 2022. If approved by shareholders at
the Annual General Meeting, this will result in a
total ordinary dividend for the year of 15.0p per
Ordinary share (2020:Nil). This, together with
the payment of the special dividend gives a total
dividend for the year of 41.71 pence (2020: Nil).
Share capital
As at 31 December 2021 the Company’s
issued capital comprised a single class of
328,618,744 Ordinary shares of 1p each,
totalling £3,286,187.44. At the Annual General
Meeting held on 3 June 2021 the shareholders
authorised the Company to purchase up to a
maximum of 10% of the issued share capital
in the market. No shares were repurchased
during the year. Shareholders also authorised
the Directors to allot shares up to an aggregate
nominal value of £1,095,395.91. Further
resolutions in respect of these matters will be
put to shareholders at the forthcoming Annual
General Meeting.
Annual Report and Accounts 2021 117
118
Stakeholders and
employment policy and
employee involvement
Pages 61 to 66 of the Strategic Report
and the pages to which it refers,
comprises the Company’s section
172(1) statement together with the
statements as to how the Directors
have engaged with employees and
had regard to their interests and how
the Directors have had regard to the
Company’s business relationships with
customers, suppliers and other external
stakeholders.
The Group continues to give full and
fair consideration to applications
for employment made by disabled
persons, having regard to their
respective aptitudes and abilities. The
Group’s employment policy includes
the continued employment of those
who may become disabled during
their employment, and the provision of
training and career development
and promotion.
The Directors have also engaged with
employees and taken their interests into
account in respect of decision making.
The Group is committed to employee
involvement throughout the business.
Employees are kept well informed of the
performance and strategy of the Group
through personal video briefings, regular
online interactive briefings, Yammer (the
Group’s internal social collaboration
site), emails and other communications
Substantial shareholders
from the Chief Executive Officer and
members of the Executive Board.
Further details of employment policies
and employee involvement can be
found in the Strategic Report on pages
27 to 38.
Directors’ indemnities
The Company purchased and
maintained Directors’ and Officers’
Liability Insurance throughout the period
under review, which gives appropriate
cover for legal actions brought against
the Directors. The Company granted
separate indemnities to the Directors to
cover liabilities arising from third parties.
The extent of the indemnities provided
is as permitted under law.
Financial instruments and
financial risk management
Details of the Group’s use of financial
instruments, including financial risk
management objectives and policies of
the Group, and exposure of the Group
to certain financial risks can be found in
Note 22 on pages 154 to 158.
Significant agreements
containing change of control
provisions
The Company has an invoice
discounting facility that terminates
on a change of control, with prepaid
amounts being repayable.
Directors’ and employees’ contracts
do not normally provide for payment for
loss of office or employment as a result
of a change of control. However, the
Company operates several share and
share option schemes for the benefit of
its Executive Directors and employees,
the rules of which contain provisions
which may cause options and share
awards granted to vest on a change
of control.
Political contributions
No political contributions were made
during the year. The Company has a
policy of not making political donations
to political organisations or independent
election candidates anywhere in the
world as defined by the Political Parties,
Election and Referendums Act 2000.
Post balance sheet events
There have been no significant post
balance sheet events since
31 December 2021.
Listing Rule 9.8.4
There is no information required to be
disclosed under Listing Rule 9.8.4.
Annual General Meeting
The Annual General Meeting of the
Company will be held on 31 May 2022.
The notice of meeting will be made
available on the Company’s website
www.page.com and posted separately
to shareholders that have requested
this.
At 31 December 2021 the Company had been notified, in accordance with the FCA Disclosure Guidance and Transparency Rules,
of the undermentioned noted interests in its Ordinary share capital. The percentage of voting rights shown below are as at the date
of notification.
Shareholder
Liontrust Investment Partners LLP
Cedar Rock Capital Limited
Heronbridge Investment Management LLP
Franklin Templeton Institutional LLC
The Capital Group Companies, Inc
No. of Ordinary shares
% of voting rights
36,137,014
16,369,717
16,303,888
16,104,930
14,647,804
11.00%
4.98%
4.96%
4.93%
4.46%
3.96%
Sanne Fiduciary Services Ltd as Trustee of the Michael Page Employees’ Benefit Trust
13,005,376
Since the date of disclosure, the above shareholdings may have changed.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 119119
Directors’ Report
Articles of Association summary
The following summarises certain
provisions of the Company’s Articles of
Association (as adopted on 3 June 2021)
and applicable English Law (including
the Companies Act 2006 (the “Act”), as
amended) as required by applicable law
and regulation.
Share capital and rights
attaching to shares
The Company has one class of share in
issue being 328,618,774 Ordinary shares
with a nominal value of one pence each.
No shares are held in treasury and there
are no persons holding shares that carry
special rights with regard to the control of
the Company.
The Articles of Association provide
that subject to any rights or restrictions
attached to any shares, on a show of
hands every member and every duly
appointed proxy present shall have one
vote. Every corporate representative
present who has been duly authorised by
a corporation has the same voting rights
as the corporation would be entitled to.
On a poll every member present in person
or by a duly appointed proxy or corporate
representative shall have one vote for
every share of which he is a holder or in
respect of which his appointment as proxy
or corporate representative has been
made. No member shall be entitled to
vote in respect of any share held by him
if any call or other sum payable by him to
the Company remains unpaid.
Any form of proxy sent by the
shareholders to the Company in relation to
any general meeting must be delivered to
the Company (via its registrars), whether
in written or electronic form, not less
than 48 hours before the time appointed
for holding the meeting or adjourned
meeting at which the person named in the
appointment proposes to vote.
Holders of the Company’s Ordinary
shares may by ordinary resolution declare
dividends but no such dividend shall
exceed the amount recommended by
the Directors. If, in the opinion of the
Directors, the profits of the Company
available for distribution justify such
payments, the Directors may, from time
to time, pay interim dividends on the
shares of such amounts and on such
dates and in respect of such periods as
they think fit. The profits of the Company
available for distribution and resolved to
be distributed shall be apportioned and
paid proportionately to the amounts paid
up on the shares during any portion of the
period in respect of which the dividend is
paid. The shareholders may, at a general
meeting of the Company declaring a
dividend upon the recommendation of the
Directors, direct that it shall be satisfied
wholly or partly by the distribution of
specific assets.
If the Company is wound up, the liquidator
can, with the sanction of a special
resolution passed by the shareholders
and any other sanction required by law,
divide among the shareholders all or any
part of the assets of the Company and
he/she can value assets and determine
how the division shall be carried out as
between the shareholders or different
classes of shareholders. The liquidator
can also, with the same sanction, transfer
the whole or any part of the assets to
trustees upon such trusts for the benefit
of the shareholders. No shareholder will
be compelled to accept assets which are
subject to a liability.
Limitations on the transfer
of shares
Any member may transfer all or any of his
shares in certificated form by instrument
of transfer in the usual common form or
in any other form which the Directors
may approve.
Where any class of shares is for the time
being a participating security, title to
shares of that class which are recorded
as being held in uncertificated form,
may be transferred (to not more than
four transferees) by the relevant system
concerned.
The Directors may in their absolute
discretion refuse to register any transfer
of shares (being shares which are not
fully paid or on which the Company has a
lien), provided that if the share is listed on
the Official List of the Financial Conduct
Authority such refusal does not prevent
dealings in the shares from taking place
on an open and proper basis.
The Directors may also refuse to register
a transfer of shares (whether fully paid or
not) unless the transfer instrument:
(a) is lodged at the registered office, or
such other place as the Directors may
appoint, accompanied by the relevant
share certificate(s);
(b) is in respect of only one class of share;
and
(c) is in favour of not more than four
transferees.
The Directors of the Company may
refuse to register the transfer of a share
in uncertificated form to a person who
is to hold it thereafter in certificated
form in any case where the Company is
entitled to refuse (or is excepted from the
requirements) under the Uncertificated
Securities Regulations 2001 to register
the transfer.
English law treats those persons who hold
the shares and are neither UK residents
nor nationals in the same way as UK
residents or nationals. They are free to
own, vote on and transfer any shares
they hold.
Powers of the Directors
Directors may exercise all the powers of
the Company, subject to the provisions
of the Articles of Association, statutory
restrictions and any authorisation or
directions given by resolution, including
powers relating to the issue and/or buying
back of shares by the Company.
Director’s appointment,
retirement and removal
Subject to the provisions of the Articles of
Association, a Director may be appointed
by ordinary resolution.
In addition, the Directors may appoint a
person who is willing to act as a Director,
and is permitted by law to do so, to
be a Director, either to fill a vacancy or
as an additional Director. A Director so
appointed shall retire at the next Annual
General Meeting notice of which is first
given after his appointment and shall then
be eligible for reappointment.
At each Annual General Meeting all
Directors at the time the notice of that
Annual General Meeting is given shall
retire from office and be subject to re-
election by the shareholders.
In addition to any power of removal under
the Act, the Company may, by special
resolution, remove a Director before the
expiration of his period of office.
A Director shall cease to hold office in
certain circumstances specified in the
Company’s Articles of Association.
Amendments to the Articles
of Association
Subject to the Act, the Articles of
Association of the Company can be
altered by special resolution of the
members.
By order of the Board
Kaye Maguire
General Counsel & Company Secretary
2 March 2022
Annual Report and Accounts 2021 119
120
Directors’ Statements of Responsibility
that the Annual Report, including
the Strategic Report, includes a
fair review of the development
and performance of the business
and the position of the Company
and undertakings included in the
consolidation taken as a whole,
together with a description of the
principal risks and uncertainties
that they face
3. Disclosure of information
to the Auditor
Having made the requisite enquiries,
so far as the Directors are aware as at
the date of this Statement, there is no
relevant audit information (as defined
by section 418(3) of the Companies
Act 2006) of which the Company’s
auditor is unaware and the Directors
have taken all the steps they ought
to have taken as a Director to make
themselves aware of any relevant audit
information and to establish that the
Company’s auditor is aware of that
information.
Kelvin Stagg
Chief Financial Officer
2 March 2022
disclosed and explained in the
financial statements;
•
The Directors are responsible for
preparing the Annual Report and
the Group financial statements in
accordance with applicable law
and regulations. Detailed below are
statements made by the Directors
in relation to their responsibilities,
disclosure of information to the
Company’s auditor and going concern.
1. Financial Statements and
accounting records
Company law of England and Wales
requires the Directors to prepare
financial statements for each financial
year. Under that law the Directors have
elected to prepare the Group and
parent company financial statements
in accordance with UK-adopted
international accounting standards
(‘IFRSs’). Under company law the
Directors must not approve the Group
financial statements unless they are
satisfied that they give a true and fair
view of the state of affairs of the Group
and the Company and of the profit or
loss of the Group and the Company for
that period.
In preparing these financial statements
the Directors are required to:
•
select suitable accounting
policies in accordance with IAS 8
Accounting Policies, Changes in
Accounting Estimates and Errors
and then apply them consistently;
• make judgements and accounting
estimates that are reasonable and
prudent;
•
•
•
present information, including
accounting policies, in a manner
that provides relevant, reliable,
comparable and understandable
information;
provide additional disclosures
when compliance with the
specific requirements in IFRSs
is insufficient to enable users
to understand the impact of
particular transactions, other
events and conditions on the
Group’s financial position and
financial performance;
in respect of the Group financial
statements, state whether UK-
adopted international accounting
standards, have been followed,
subject to any material departures
•
•
in respect of the parent company
financial statements, state
whether UK-adopted international
accounting standards have
been followed, subject to any
material departures disclosed
and explained in the financial
statements; and
prepare the financial statements
on the going concern basis unless
it is appropriate to presume that
the Company and/or the Group
will not continue in business.
The Directors are responsible for
keeping adequate accounting
records that are sufficient to show
and explain the Company’s and
Group’s transactions and disclose with
reasonable accuracy at any time the
financial position of the Company and
the Group and enable them to ensure
that the Company and the Group
financial statements comply with the
Companies Act 2006. They are also
responsible for safeguarding the assets
of the Group and parent company and
Group and hence for taking reasonable
steps for the prevention and detection
of fraud and other irregularities.
Under applicable law and regulations,
the Directors are also responsible for
preparing a Strategic Report, Directors’
Report, Directors’ Remuneration
Report and Corporate Governance
Report that comply with that law and
those regulations.
The Directors are responsible for
the maintenance and integrity of the
corporate and financial information
included on the Company’s website.
2. Directors’ Responsibility
Statement
The Directors confirm, to the best of
their knowledge:
•
that the consolidated financial
statements, prepared in
accordance with UK-adopted
international accounting
standards, give a true and fair
view of the assets, liabilities,
financial position and profit of the
parent company and undertakings
included in the consolidation taken
as a whole; and
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 121121
Independent Auditor’s Report to the Members of PageGroup plc
Opinion
In our opinion:
• PageGroup plc’s group financial statements and parent company financial statements (the “financial statements”) give a true and
fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2021 and of the group’s profit for the
year then ended;
• the group financial statements have been properly prepared in accordance with UK adopted international accounting standards;
• the parent company financial statements have been properly prepared in accordance with UK adopted international accounting
standards as applied in accordance with section 408 of the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of PageGroup plc (the ‘parent company’) and its subsidiaries (the ‘group’) for the year
ended 31 December 2021 which comprise:
Group
Parent company
Consolidated balance sheet as at 31 December 2021
Balance sheet as at 31 December 2021
Consolidated income statement for the year then ended
Statement of changes in equity for the year then ended
Consolidated statement of comprehensive income for the year then ended
Statement of cash flows for the year then ended
Consolidated statement of changes in equity for the year then ended
Related notes 1 to 25 to the financial statements including a
summary of significant accounting policies
Consolidated statement of cash flows for the year then ended
Related notes 1 to 25 to the financial statements, including a summary of
significant accounting policies
The financial reporting framework that
has been applied in their preparation
is applicable law and UK adopted
international accounting standards and
as regards the parent company financial
statements, as applied in accordance
with section 408 of the Companies Act
2006.
Basis for opinion
We conducted our audit in accordance
with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law.
Our responsibilities under those
standards are further described in the
Auditor’s responsibilities for the audit
of the financial statements section of
our report. We believe that the audit
evidence we have obtained is sufficient
and appropriate to provide a basis for
our opinion
Independence
We are independent of the group and
parent in accordance with the ethical
requirements that are relevant to our
audit of the financial statements in
the UK, including the FRC’s Ethical
Standard as applied to listed public
interest entities, and we have fulfilled
our other ethical responsibilities in
accordance with these requirements.
The non-audit services prohibited by
the FRC’s Ethical Standard were not
provided to the group or the parent
company and we remain independent
of the group and the parent company in
conducting the audit.
Conclusions relating to going
concern
In auditing the financial statements,
we have concluded that the directors’
use of the going concern basis of
accounting in the preparation of the
financial statements is appropriate. Our
evaluation of the directors’ assessment
of the group and parent company’s
ability to continue to adopt the going
concern basis of accounting included:
• Confirming our understanding
of the director’s going concern
assessment process, performed
our own related risk assessment,
and engaged with management
early to ensure all key factors were
considered in their assessment.
• Assessing the appropriateness
of the duration of the going
concern assessment period to 31
March 2023 and considering the
existence of any significant events
or conditions beyond this period
based on our knowledge arising
from other areas of the audit.
• Reviewing borrowing facilities to
confirm both their availability to the
Group, alongside the consideration
of the key covenants on such
facilities.
•
Testing the assessment for clerical
accuracy.
• Assessing whether assumptions
made were reasonable, including
testing key assumptions in the
forecasts by reference to historical
trends, independent sector
forecasts and other information
where available. Key assumptions
include those over revenue, gross
profit and cash.
• Considering the appropriateness
of management’s base case and
downside scenarios, to understand
how severe conditions would
have to be to breach liquidity
and whether the reduction in
profitability required has no
more than a remote possibility
of occurring. Management
considered a downside scenario
to be a reduction in gross profit of
25% which mirrors the results of
2020.
• Performing independent sensitivity
analysis on management’s
assumptions including applying
incremental adverse cashflow
sensitivities. These sensitivities
included the impact of certain
severe but plausible scenarios,
evaluated as part of management’s
work on the Group’s long term
viability, materialising within the
going concern period; and
• Reviewing the appropriateness
of the Group’s going concern
disclosures included in the Annual
Report.
Annual Report and Accounts 2021 121
122
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the group and parent company’s ability to continue as a going concern for a
period to 31 March 2023.
In relation to the group and parent company’s reporting on how they have applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the
directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections
of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the
group’s ability to continue as a going concern.
Overview of our audit approach
Audit scope
• We performed an audit of the complete financial information of 7 components, audit procedures on specific balances for a
further 9 components and other procedures on the remaining 31 components.
• The components where we performed full or specific audit procedures accounted for 96% of Profit before tax, 90% of
Revenue and 83% of Total assets.
Key audit matters
• Revenue recognition for permanent and temporary placements.
Materiality
• Overall group materiality of £8.3m which represents 5% of Profit before tax.
An overview of the scope
of the parent company and
group audits
Tailoring the scope
Our assessment of audit risk, our
evaluation of materiality and our
allocation of performance materiality
determine our audit scope for each
company within the Group. Taken
together, this enables us to form an
opinion on the consolidated financial
statements. We take into account
size, risk profile, the organisation of
the group and effectiveness of group-
wide controls, changes in the business
environment and other factors such
as recent internal audit results when
assessing the level of work to be
performed at each component.
In assessing the risk of material
misstatement to the Group financial
statements, and to ensure we had
adequate quantitative coverage of
significant accounts in the financial
statements, of the 47 reporting
components of the Group, we selected
16 components covering entities within
the United Kingdom, France, Germany,
the United States, China, Hong Kong,
Spain, Italy, Holland, Australia, Belgium,
Brazil, Mexico, Switzerland and Japan
which represent the principal business
units within the Group.
Full scope components - Of the 16
components selected, we performed
an audit of the complete financial
information of 7 components (“full
scope components”) which were
selected based on their size or risk
characteristics.
Specific scope components - For the
remaining 9 components (“specific
scope components”), we performed
audit procedures on specific accounts
within that component that we
considered had the potential for the
greatest impact on the significant
accounts in the financial statements
either because of the size of these
accounts or their risk profile, in order to
ensure that, at the overall Group level,
we reduced and appropriately covered
the residual risk of error. Depending on
the component or type of procedures,
these procedures were undertaken
by the Primary audit team or separate
component audit team. The audit
scope of these components may not
have included testing of all significant
accounts of the component but will
have contributed to the coverage of
significant accounts tested for the
Group.
The remaining 31 components where
we did not perform full audit procedures
together represent 4% of the Group
profit before tax, none are individually
greater than 2% of the Group’s profit
before tax.
For these components, we performed
other procedures, including analytical
review procedures on a country-
by-country basis, obtaining an
understanding of the Group wide entity
level controls over all components and
assessing the results of the Internal
Audit reviews to identify any potential
risks of material misstatement to the
Group financial statements.
Revenue
Full scope components 1
Specific scope components1
Total
Profit before tax
Full scope components
Specific scope components
Total
Total assets
Full scope components2
Specific scope components
Total
2021
57%
33%
90%
67%
29%
96%
71%
12%
83%
2020
58%
24%
82%
99%
(14%)
85%
59%
17%
76%
1. The Group audit risk in relation to revenue recognition was subject to audit procedures at each of the full and specific scope locations with significant revenue streams
(being 7 full scope components 9 specific scope components).
2. We tested the right-of-use asset in respect of IFRS 16 and included this within the total assets coverage in the current year.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 123123
The charts below illustrate the coverage obtained from the work performed by our
audit teams.
relevant audit work papers was facilitated
by the EY electronic audit file platform.
10%
33%
Revenue
57%
29%
4%
Profit
before
Tax
17%
71%
67%
12%
Total
Assets
Full Scope
Specific Scope
Other procedures
Changes from the prior year
We considered the growth in emerging
markets including Brazil, Mexico, Japan
and Switzerland and included these
markets as specific scope for FY21, which
increased our coverage.
Involvement with component
teams
In establishing our overall approach
to the Group audit, we determined
the type of work that needed to be
undertaken at each of the components
by us, as the primary audit engagement
team, or by component auditors
from other EY global network firms
operating under our instruction. Of the
7 full scope components and 9 specific
scope components, audit procedures
were performed on 1 and 4 of these
respectively, directly by the primary audit
team. For 6 full scope components and
5 specific scope components where
the work was performed by component
auditors, we determined the appropriate
level of involvement to enable us to
determine that sufficient audit evidence
had been obtained as a basis for our
opinion on the Group financial statements
as a whole.
Auditing standards require us to be
sufficiently involved in the work of the
component teams throughout the group
audit. In “normal” circumstances, one of
the primary methods by which we execute
our involvement is through site visits where
we focus primarily on the components
significant by size and/or where issues
have been identified or where there have
been important changes since the prior
year. Our visits incorporated a combination
of site visits, review of the component
team’s audit work and meeting with
business unit management.
Since March 2020, the fast-changing
environment has created multiple
challenges for the group audit team and
our involvement with our component
teams, given the widespread effects of
COVID-19, the threat of new variants in
many parts of the world, and the sustained
uncertainty over travel restrictions/other
government measures being imposed.
Consequently, the planned site visits
which were due to take place during
the course of the FY21 audit had to
be adjusted and the Group audit team
pursued a programme of component team
involvement which did not rely on physical
site visits, consistent with prior year.
Instead, the Group audit team performed
virtual site visits through the use of video or
teleconferencing facilities, which included a
combination of the following:
• Attending video conferences for
key component team meetings,
including key discussions with local
management
• Setting regular touch point calls with
component teams on a timely basis
• Holding discussions with the
component team while remotely
reviewing the component team’s
workpapers in key areas. Our review
of audit workpapers was facilitated by
the EY electronic audit file platform,
screen sharing or the provision of
copies of workpapers direct to the
Group audit team, depending on
what is permitted by the laws and
regulations in each jurisdiction.
The virtual meetings involved discussing
the audit approach with the component
teams and any issues arising from their
work, reviewing key audit working papers
on risk areas. The Senior Statutory
Auditor in addition to other members
of the Primary audit team led video
conference calls with all the component
teams to discuss key audit procedures
over significant risks and key judgements.
The independent partner had calls with
all full scope component audit partners.
The Group audit team led 3 regional
audit closing meetings held via video
conference with regional management
and the Group CFO, at which key areas
of local judgement and audit findings were
discussed.
For all components, the year-end review of
The primary team interacted regularly
with the component teams where
appropriate during various stages of the
audit, reviewed relevant working papers
and were responsible for the scope and
direction of the audit process. This,
together with the additional procedures
performed at Group level, gave us
appropriate evidence for our opinion on
the Group financial statements.
Climate change
There has been increasing interest from
stakeholders as to how climate change
will impact PageGroup plc. Given the
nature of the business in a non-carbon
intensive industry, where remote working
has become typical, management do not
consider there to be a material impact
from climate change. The Group has
determined that the most significant
future impacts from climate change on
its operations will be from severe weather
events impacting office-based locations,
however, with a predominantly leased
property footprint the Group considers
there to be little risk of significant business
disruption or significant financial impacts
from climate change. Furthermore, the
transition risks are not considered by
management to be material. These
conclusions are explained on pages
40 to 42 in the required Task Force for
Climate related Financial Disclosures
and on pages 53 to 60 in the principal
risks and uncertainties, which form part
of the “Other information,” rather than
the audited financial statements. Our
procedures on these disclosures therefore
consisted solely of considering whether
they are materially inconsistent with the
financial statements or our knowledge
obtained in the course of the audit
or otherwise appear to be materially
misstated.
As explained in the Significant accounting
policies, governmental and societal
responses to climate change risks are still
developing, and are interdependent upon
each other, and consequently financial
statements cannot capture all possible
future outcomes as these are not yet
known. The degree of certainty of these
changes may also mean that they cannot
be taken into account when determining
asset and liability valuations and the
timing of future cash flows under the
requirements of UK adopted international
accounting standards.
Annual Report and Accounts 2021 123
124
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of
resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit
of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
Key observations
communicated to the Audit
Committee
We concluded that revenue
recognised for permanent
and temporary placements
is correctly recorded in
accordance with the Group’s
revenue recognition criteria
and UK adopted international
accounting standards,
Risk
Our response to the risk
Revenue recognition for permanent and
temporary placements - Refer to the Audit
Committee Report (Page 90); Accounting
policies (page 131); and Note 2 of the
Consolidated Financial Statements
(page 127).
The Group has reported permanent
placement revenue of £682.2 million (2020:
£441.5 million) and temporary placement
revenue of £961.5 million (2020: £863.3
million).
For permanent placements there is a risk
around the timing of revenue recognition as
revenue is recognised when customer and
candidate agreement is achieved, which
may be several months in advance of the
start of employment. Consequently, there is
a risk that:
• recognition occurs before revenue
recognition criteria have been met;
• period end cut-off is performed
incorrectly; or
• management judgement is incorrectly
applied in estimating the level of provision
required for potential revenue reversals
when placements are not taken up as
agreed.
Temporary placement revenue is recognised
when the customer has approved the
timesheet. Consequently, there is a risk that:
We performed the following full and specific scope audit
procedures over this risk area at 15 components, which covered
90% of the revenue balance:
• For permanent and temporary revenue streams, we identified
and assessed the process and design of key controls to
validate that revenue recognition was appropriate and applied in
accordance with the Group’s accounting policies.
• For all 15 components, we used data analytics covering all
revenue transactions in the year to test the correlation between
revenue, accounts receivable and cash.
• Performed period-end cut off testing for a sample of revenue
transactions to assess whether all revenue recognition criteria
for the permanent and temporary placements had been met and
that revenue had been recognised in the correct period.
• Compared the level of permanent placement revenue reversals
over the last 12 months, which occur as a result of non-
completion of contractual placements, to the provision recorded
against accrued income and trade receivables to determine if the
assumptions used to calculate the provision were appropriate.
We also re-performed the provision calculation to confirm its
accuracy.
• Performed testing of cash collections made post year-end
for a sample of balances to validate the existence of accrued
revenue and trade receivable balances. For those transactions
not collected in cash we verified documents to check all revenue
recognition criteria had been met.
• To address the risk of management override, we performed
journal entry testing over revenue, focusing on management-
initiated entries and top-side adjustments specifically around
year end.
• revenue is recognised before an approved
timesheet has been submitted; or
For all other components which represent 10% of the revenue
balance:
• that period end cut-off is performed
• We performed audit procedures centrally on a country-by-
incorrectly.
For both permanent and temporary
placements we have identified the risk
of manipulation of revenue through
management initiated or top-side journals.
country basis to address the risk of an undetected material
error occurring in all other components representing 10% of the
Group’s revenue. These comprised analytical review of revenue
and gross profit, and ratio analysis of key performance indicators
including revenue and gross profit per fee earner.
Our application of materiality
We apply the concept of materiality
in planning and performing the audit,
in evaluating the effect of identified
misstatements on the audit and in
forming our audit opinion.
Materiality
The magnitude of an omission or
misstatement that, individually or in
the aggregate, could reasonably be
expected to influence the economic
decisions of the users of the financial
statements. Materiality provides a basis
for determining the nature and extent of
our audit procedures.
We determined materiality for the Group
to be £8.3 million (2020: £5.0 million),
which is 5% of Group profit before tax
(2020: 5% of normalised profit before
tax). This approach is a change from
the prior year whereby normalised profit
before tax was used due to the volatility
in results as a result of the COVID-19
pandemic. Results have stabilised for
2021 and reflect a more typical level of
performance of the Group consistent
with years prior to 2020.
We determined materiality for the Parent
Company to be £5.7 million (2020: £6.7
million), which is 0.5% of total assets
(2020: 0.5% of total assets). We believe
that total assets is an appropriate basis
to determine materiality given the nature
of the Parent company as the holding
company of the Group. The materiality
was capped at the Group allocated
materiality of £0.9 million (2020:
£0.8million).
During the course of our audit, we
reassessed initial materiality and final
materiality used actual results in the
determination of our final materiality.
Performance materiality
The application of materiality at the
individual account or balance level. It
is set at an amount to reduce to an
appropriately low level the probability
that the aggregate of uncorrected and
undetected misstatements exceeds
materiality.
On the basis of our risk assessments,
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 125125
together with our assessment of the
Group’s overall control environment,
our judgement was that performance
materiality was 75% (2020: 75%) of
our planning materiality, namely £6.2
million (2020: £3.8 million). We have set
performance materiality at this percentage
due to lower likelihood of misstatements
based on prior periods’ experience.
Audit work at component locations for the
purpose of obtaining audit coverage over
significant financial statement accounts
is undertaken based on a percentage
of total performance materiality. The
performance materiality set for each
component is based on the relative scale
and risk of the component to the Group
as a whole and our assessment of the risk
of misstatement at that component. In
the current year, the range of performance
materiality allocated to components was
£0.9 million to £2.1 million (2020: £0.8
million to £2.3 million).
Reporting threshold
An amount below which identified
misstatements are considered as being
clearly trivial.
We agreed with the Audit Committee that
we would report to them all uncorrected
audit differences in excess of £0.4 million
(2020: £0.25 million), which is set at
5% of planning materiality, as well as
differences below that threshold that,
in our view, warranted reporting on
qualitative grounds.
We evaluate any uncorrected
misstatements against both the
quantitative measures of materiality
discussed above and in light of other
relevant qualitative considerations in
forming our opinion.
Other information
The other information comprises the
information included in the annual report
set out on pages 1 to 120, including
the reports included within the Strategic
review and Corporate Governance, other
than the financial statements and our
auditor’s report thereon. The directors
are responsible for the other information
contained within the annual report.
Our opinion on the financial statements
does not cover the other information
and, except to the extent otherwise
explicitly stated in this report, we do not
express any form of assurance conclusion
thereon.
Our responsibility is to read the other
information and, in doing so, consider
whether the other information is materially
inconsistent with the financial statements
or our knowledge obtained in the course
of the audit, or otherwise appears to be
materially misstated. If we identify such
material inconsistencies or apparent
material misstatements, we are required
to determine whether this gives rise to
a material misstatement in the financial
statements themselves. If, based on the
work we have performed, we conclude
that there is a material misstatement of
the other information, we are required to
report that fact.
We have nothing to report in this regard.
Opinions on other matters
prescribed by the Companies
Act 2006
In our opinion, the part of the directors’
remuneration report to be audited has
been properly prepared in accordance
with the Companies Act 2006.
In our opinion, based on the work
undertaken in the course of the audit:
•
•
the information given in the strategic
report and the directors’ report
for the financial year for which the
financial statements are prepared
is consistent with the financial
statements; and
the strategic report and the directors’
report have been prepared in
accordance with applicable legal
requirements.
Matters on which we are
required to report by exception
In the light of the knowledge and
understanding of the group and the
parent company and its environment
obtained in the course of the audit, we
have not identified material misstatements
in the strategic report or the directors’
report.
We have nothing to report in respect of
the following matters in relation to which
the Companies Act 2006 requires us to
report to you if, in our opinion:
•
•
•
adequate accounting records
have not been kept by the parent
company, or returns adequate for our
audit have not been received from
branches not visited by us; or
the parent company financial
statements and the part of the
Directors’ Remuneration Report to be
audited are not in agreement with the
accounting records and returns; or
certain disclosures of directors’
remuneration specified by law are not
made; or
• we have not received all the
information and explanations we
require for our audit
Corporate Governance
Statement
We have reviewed the directors’
statement in relation to going concern,
longer-term viability and that part of the
Corporate Governance Statement relating
to the group and company’s compliance
with the provisions of the UK Corporate
Governance Code specified for our review
by the Listing Rules.
Based on the work undertaken as part of
our audit, we have concluded that each
of the following elements of the Corporate
Governance Statement is materially
consistent with the financial statements or
our knowledge obtained during the audit:
• Directors’ statement with regards to
the appropriateness of adopting the
going concern basis of accounting
and any material uncertainties
identified set out on page 60;
• Directors’ explanation as to its
assessment of the company’s
prospects, the period this assessment
covers and why the period is
appropriate set out on page 60;
• Director’s statement on whether it
has a reasonable expectation that
the group will be able to continue in
operation and meets its liabilities set
out on page 60;
• Directors’ statement on fair, balanced
and understandable set out on
page 84;
• Board’s confirmation that it has
carried out a robust assessment of
the emerging and principal risks set
out on page 91;
The section of the annual report that
describes the review of effectiveness
of risk management and internal
control systems set out on page 91;
and;
The section describing the work
of the audit committee set out on
page 88.
•
•
Responsibilities of directors
As explained more fully in the directors’
responsibilities statement set out on page
120, the directors are responsible for the
preparation of the financial statements
and for being satisfied that they give a
true and fair view, and for such internal
control as the directors determine is
necessary to enable the preparation of
financial statements that are free from
material misstatement, whether due to
fraud or error.
In preparing the financial statements, the
directors are responsible for assessing
the group and parent 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 group or the
parent company or to cease operations, or
have no realistic alternative but to do so.
Annual Report and Accounts 2021 125
126
Auditor’s responsibilities
for the audit of the financial
statements
Our objectives are to obtain reasonable
assurance about whether the financial
statements as a whole are free from
material misstatement, whether due to
fraud or error, and to issue an auditor’s
report that includes our opinion.
Reasonable assurance is a high level
of assurance, but is not a guarantee
that an audit conducted in accordance
with ISAs (UK) will always detect a
material misstatement when it exists.
Misstatements can arise from fraud
or error and are considered material
if, individually or in the aggregate,
they could reasonably be expected
to influence the economic decisions
of users taken on the basis of these
financial statements.
Explanation as to what extent
the audit was considered
capable of detecting
irregularities, including fraud
Irregularities, including fraud, are
instances of non-compliance with laws
and regulations. We design procedures
in line with our responsibilities, outlined
above, to detect irregularities, including
fraud. The risk of not detecting a
material misstatement due to fraud is
higher than the risk of not detecting
one resulting from error, as fraud may
involve deliberate concealment by,
for example, forgery or intentional
misrepresentations, or through
collusion. The extent to which our
procedures are capable of detecting
irregularities, including fraud is detailed
below.
However, the primary responsibility
for the prevention and detection of
fraud rests with both those charged
with governance of the company and
management.
• We obtained an understanding
of the legal and regulatory
frameworks that are applicable
to the group and determined that
the most significant are those that
relate to the reporting framework
(UK adopted international
accounting standards, the
Companies Act 2006 and UK
Corporate Governance Code)
and the relevant tax compliance
regulations in the jurisdictions in
which the Group operates and
the EU General Data Protection
Regulation (GDPR). There are no
significant, industry specific laws or
regulations that we considered in
determining our approach.
• We understood how the
Group is complying with those
frameworks by making enquiries
of management, internal audit,
those responsible for legal and
compliance procedures and
the company secretary. We
corroborated our enquiries through
our review of board minutes and
papers provided to the Audit
Committee, correspondence
received from regulatory bodies
and attendance at all meetings
of the Audit Committee, as well
as consideration of the results of
our audit procedures across the
Group. Our assessment included:
incorporating data analytics across
our audit approach, journal entry
testing with a focus on manual
consolidation journals and journals
meeting our defined risk criteria
based on our understanding of
the business; enquiries of the legal
counsel, Group management,
internal audit and all full and
specific scope management;
review of Board and Audit
Committee reporting; and focused
testing as referred to in the key
audit matters section above.
• We assessed the susceptibility of
the group’s financial statements to
material misstatement, including
how fraud might occur by meeting
with management from various
parts of the business including
management and finance teams
of the local markets where
appropriate, Head Office, the
Audit Committee, the internal
audit function, the Group legal
function and individuals in the fraud
and compliance department to
understand where it considered
there was susceptibility to fraud;
and assessing whistleblowing
incidences for those with a
potential financial reporting impact.
We also considered performance
targets and their propensity to
influence management to manage
earnings.
• We considered the programmes
and controls that the Group has
established to address risks
identified, or that otherwise
prevent, deter and detect fraud;
and how senior management
monitors those programmes
and controls. Where risk was
considered as higher, we
performed audit procedures to
address each identified fraud risk.
.Based on this understanding we
designed our audit procedures to
identify non-compliance with such
laws and regulations that could
give rise to a material misstatement
in the financial statements,
including instructions to full and
specific scope component teams.
Our procedures included enquires
of Group management, legal
counsel and Internal Audit; journal
entry testing, with a focus on
management initiated or top-side
adjustments identified based on
characteristics of journal posting
date and times, account pairings,
specific key words and phrases
derived from forensic investigations
experience; and consideration of
any specific bribery, corruption or
other regulatory risk.
A further description of our
responsibilities for the audit of the
financial statements is located on
the Financial Reporting Council’s
website at https://www.frc.org.uk/
auditorsresponsibilities. This description
forms part of our auditor’s report.
Other matters we are
required to address
•
Following the recommendation
from the audit committee, we
were appointed by the company
in June 2021 to audit the financial
statements for the year ending
31 December 2021 and
subsequent financial periods.
The period of total uninterrupted
engagement including previous
renewals and reappointments is
11 years, covering the years
ending 31 December 2011 to
2021.
•
The audit opinion is consistent with
the additional report to the audit
committee.
Use of our report
This report is made solely to the
company’s members, as a body, in
accordance with Chapter 3 of Part 16
of the Companies Act 2006. Our audit
work has been undertaken so that we
might state to the company’s members
those matters we are required to state
to them in an auditor’s report and for
no other purpose. To the fullest extent
permitted by law, we do not accept or
assume responsibility to anyone other
than the company and the company’s
members as a body, for our audit work,
for this report, or for the opinions we
have formed.
Joe Yglesia (Senior statutory auditor)
for and on behalf of Ernst & Young LLP,
Statutory Auditor
London
3 March 2022
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information
127127
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2021
Revenue
Cost of sales
Gross profit
Administrative expenses
Operating profit
Financial income
Financial expenses
Profit before tax
Income tax expense
Profit/(loss) for the year
Attributable to:
Owners of the parent
Earnings per share
Basic earnings per share (pence)
Diluted earnings per share (pence)
Note
2
2
2
5
5
2
6
3
9
9
The above results relate to continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2021
Profit/(loss) for the year
Other comprehensive income/(loss) for the year
Items that may subsequently be reclassified to profit and loss:
Currency translation differences
Total comprehensive income for the year
Attributed to:
Owners of the parent
2021
£’000
1,643,740
(766,020)
877,720
(709,210)
168,510
290
(2,155)
166,645
(48,289)
118,356
2020
£’000
1,304,791
(694,542)
610,249
(593,221)
17,028
588
(2,072)
15,544
(21,286)
(5,742)
118,356
(5,742)
37.2
37.0
(1.8)
(1.8)
2021
£’000
118,356
(8,423)
109,933
109,933
2020
£’000
(5,742)
5,945
203
203
Annual Report and Accounts 2021
127
128
CONSOLIDATED AND PARENT COMPANY BALANCE SHEETS
As at 31 December 2021
Group
Re-presented
Company
Note
2021
£’000
2020
£’000
2021
£’000
2020
£’000
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
- Goodwill and other intangibles
- Computer software (including assets
held under construction)
Investments
Deferred tax assets
Other receivables
Current assets
Trade and other receivables
Current tax receivable
Cash and cash equivalents
Total assets
Current liabilities
Trade and other payables
Provisions
Lease liabilities
Current tax payable
Net current assets/(liabilities)
Non-current liabilities
Other payables
Lease liabilities
Deferred tax liabilities
Provisions
Total liabilities
Net assets
Capital and reserves
Called-up share capital
Share premium
Capital redemption reserve
Reserve for shares held in the employee benefit trust
Currency translation reserve
Retained earnings
Total equity
10
11
12
12
13
18
14
14
7
21
2
15
16
11
7
15
11
18
16
2
19
20
20
20
20
24,836
94,956
2,065
26,401
95,414
2,097
47,100
39,708
–
–
–
–
–
–
–
–
–
19,659
12,849
–
541,848
534,795
17,688
13,169
–
–
–
–
201,465
194,477
541,848
534,795
355,797
13,214
153,983
522,994
252,476
16,889
165,987
435,352
970,375
808,610
–
–
–
–
970,375
808,610
724,459
629,829
1,512,223
1,343,405
(230,382)
(175,337)
(1,221,423)
(1,026,656)
(6,755)
(30,125)
(22,241)
(5,425)
(32,711)
(12,365)
–
–
–
–
–
–
(289,503)
(225,838)
(1,221,423)
(1,026,656)
233,491
209,514
(251,048)
(218,046)
(18,332)
(72,215)
(354)
(3,950)
(94,851)
(12,483)
(70,758)
(1,589)
(3,260)
(88,090)
–
–
–
–
–
–
–
–
–
–
(384,354)
(313,928)
(1,221,423)
(1,026,656)
340,105
315,901
290,800
316,749
3,286
99,564
932
3,286
99,564
932
(47,338)
(55,498)
16,897
266,764
340,105
25,320
242,297
315,901
3,286
99,564
932
–
–
3,286
99,564
932
–
–
187,018
290,800
212,967
316,749
The financial statements of PageGroup plc (Company Number 3310225) set out on pages 127 to 159 were approved by the Board of
Directors and authorised for issue on 2 March 2022. The Company’s profit for the financial year amounted to £67.2m (2020: £137.1m).
The Balance Sheet has been re-presented to provide separate disclosure for provisions within current and non-current liabilities which
were previously disclosed within accruals. Further information is disclosed in Note 1 and Note 16 to the Financial Statements.
Signed on behalf of the Board of Directors
Steve Ingham,
Chief Executive Officer
Kelvin Stagg,
Chief Financial Officer
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information
129129
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2021
2020
Balance at 1 January 2020
Currency translation differences
Net income recognised
directly in equity
Loss for the year
Total comprehensive
income/(expense) for the year
Purchase of shares held in the employee
benefit trust
Exercise of share plans
Transfer from reserve for shares held in
the employee benefit trust
Credit in respect of share schemes
Credit in respect of tax on share schemes
Balance at 31 December 2020 and
1 January 2021
2021
Currency translation differences
Net expense recognised
directly in equity
Profit for the year
Total comprehensive
(expense)/income for the year
Purchase of shares held in the employee
benefit trust
Exercise of share plans
Transfer from reserve for shares held in
the employee benefit trust
Credit in respect of share schemes
Credit in respect of tax on share schemes
Dividends
8
Called-up
share capital
£’000
Note
Share
premium
£’000
Capital
redemption
reserve
£’000
Reserve
for shares
held in the
employee
benefit trust
£’000
Currency
translation
reserve
£’000
Retained
earnings
£’000
Total
equity
£’000
3,286
99,507
932
(47,662)
19,375
248,949
324,387
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
57
–
–
–
57
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5,945
5,945
–
–
–
(5,742)
5,945
5,945
(5,742)
5,945
(5,742)
203
(14,369)
–
6,533
–
–
(7,836)
–
–
–
–
–
–
–
(14,369)
330
387
(6,533)
–
5,275
5,275
18
(910)
18
(8,689)
3,286
99,564
932
(55,498)
25,320
242,297
315,901
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(8,423)
(8,423)
–
–
(8,423)
(8,423)
–
118,356
118,356
(8,423)
118,356
109,933
(10,369)
–
18,529
–
–
–
8,160
–
–
–
–
–
–
–
–
(10,369)
16,431
16,431
(18,529)
7,052
1,387
–
7,052
1,387
(100,230)
(100,230)
(93,889)
(85,729)
Balance at 31 December 2021
3,286
99,564
932
(47,338)
16,897
266,764
340,105
Annual Report and Accounts 2021 129
130
STATEMENT OF CHANGES IN EQUITY – PARENT COMPANY
For the year ended 31 December 2021
Note
Called-up
share capital
£’000
3,286
Share
premium
£’000
99,507
Capital
redemption
reserve
£’000
Retained
earnings
£’000
Total equity
£’000
932
70,591
174,316
–
–
–
–
–
–
–
57
–
57
–
–
–
–
–
137,101
137,101
137,101
137,101
–
5,275
5,275
57
5,275
5,332
3,286
99,564
932
212,967
316,749
Company
Balance at 1 January 2020
Profit for the year
Total comprehensive income for
the year
Exercise of share plans
Credit in respect of share schemes
Balance at 31 December 2020 and 1
January 2021
2021
Profit for the year
Total comprehensive income for
the year
Credit in respect of share schemes
Dividends
8
Balance at 31 December 2021
3,286
99,564
932
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
67,229
67,229
67,229
7,052
67,229
7,052
(100,230)
(100,230)
(93,178)
187,018
(93,178)
290,800
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 131131
CONSOLIDATED AND PARENT COMPANY CASH FLOW STATEMENTS
For the year ended 31 December 2021
Profit before tax
Note
2
Depreciation and amortisation charges
10/11/12
(Profit)/Loss on sale of property, plant and
equipment, and computer software
Share scheme charges
Net finance cost
Operating cash flow before changes in working
capital
(Increase)/Decrease in receivables
Increase/(Decrease) in payables
Cash generated from operations
Income tax paid
Net cash from operating activities
Cash flows from investing activities
Purchases of property, plant and equipment
Purchases of intangibles
Proceeds from the sale of property, plant and
equipment, and computer software
Interest received
Net cash used in investing activities
Cash flows from financing activities
Dividends paid
Interest paid
Lease liability principal repayment
Issue of own shares for the exercise of options
Purchase of shares held in the employee benefit trust
Net cash used in financing activities
Group
Company
2021
£’000
166,645
53,728
(59)
7,052
1,864
2020
£’000
15,544
61,782
262
5,275
1,484
2021
£’000
2020
£’000
67,229
137,101
–
–
–
–
–
–
–
–
229,230
84,347
67,229
137,101
(115,318)
124,370
(161,767)
(201,452)
72,372
186,284
(37,046)
149,238
(39,760)
168,957
(31,747)
137,210
194,768
100,230
–
100,230
64,294
(57)
–
(57)
10
12
(10,233)
(18,130)
(4,892)
(17,770)
2,629
290
918
588
(25,444)
(21,156)
–
–
–
–
–
(100,230)
–
(100,230)
(841)
(37,026)
16,431
(10,369)
(132,035)
(413)
(39,234)
387
(14,369)
(53,629)
–
–
–
–
(100,230)
–
–
–
–
–
–
–
–
57
–
57
–
–
–
–
Net increase in cash and cash equivalents
(8,241)
62,425
Cash and cash equivalents at the beginning
of the year
Exchange (loss)/gain on cash and cash equivalents
Cash and cash equivalents at the end of the year
21
165,987
(3,763)
153,983
97,832
5,730
165,987
–
–
–
–
Notes to the Financial Statements
For the year ended 31 December 2021
1. SIGNIFICANT
ACCOUNTING POLICIES
Statement of compliance
PageGroup plc is a company incorporated
in the United Kingdom under the
Companies Act.
Under that law the Directors have elected
to prepare the Group and parent company
financial statements in accordance with
UK-adopted international accounting
standards (“IFRSs”).
Basis of preparation
The financial statements of PageGroup plc
consolidate the results of the Company
and all its subsidiary undertakings.
As permitted by Section 408 of the
Companies Act 2006, the profit and
loss account of the Company has not
been included as part of these financial
statements. The Company’s profit for
the financial year amounted to £67.2m
(2020: £137.1m). The decrease in the
Company’s profit this year is as a result of
decreased dividend income.
It is the Directors’ view that provisions
are sufficiently material to be separately
disclosed within the balance sheet, where
in previous years these were disclosed
within accruals. Accordingly, comparatives
have been represented on a consistent
basis. No third balance sheet is presented
Annual Report and Accounts 2021 131
132
because the representation at the
beginning of the comparative period
is not considered material. There is
no impact on the income statement,
cashflow or net assets in the balance
sheet as a result of this representation.
As a result, the balance sheet for
2020 includes current and non-current
provisions of £10.7m and an associated
reduction in accruals.
Refer to Note 16 for disclosures in
accordance with IAS 37.
Basis of consolidation
(i) Subsidiaries
The consolidated financial statements
comprise the financial statements
of the Group and its subsidiaries as
at 31 December 2021. Control is
achieved when the Group is exposed,
or has rights, to variable returns from
its involvement with the investee and
has the ability to affect those returns
through its power over the investee.
(ii) Transactions eliminated on
consolidation
Intragroup balances and any unrealised
gains and losses or income and
expenses arising from intragroup
transactions, are eliminated in preparing
the consolidated financial statements.
Unrealised losses are eliminated in the
same way as unrealised gains, but only
to the extent that there is no evidence
of impairment.
(iii) Employee Benefit Trust
Shares in PageGroup plc held by
the trust are shown as a reduction in
shareholders’ funds.
(iv) Changes in accounting policy
– new accounting standards,
interpretations and amendments
The accounting policies adopted are
consistent with those of the previous
financial years except for the following
amendments to IFRS effective as of
1 January 2021:
•
IBOR Reform and its Effects on
Financial Reporting – Phase 2
The adoption of these accounting
standards or interpretations did not
have any impact on the accounting
policies, financial position or
performance of the Group.
Standards issued but not yet
effective
The standards and interpretations that
are issued, but not yet effective, up to
the date of issuance of the Group’s
financial statements are disclosed
below. The Group intends to adopt
these standards, if applicable, when
they become effective.
• Reference to the Conceptual
Framework – Amendments to IFRS
3; effective date 1 January 2022
• Property, Plant and Equipment:
Proceeds before Intended Use –
Amendments to IAS 16; effective
date 1 January 2022
• Onerous Contracts – Costs of
•
•
Fulfilling a Contract – Amendments
to IAS 37; effective date 1 January
2022
IFRS 1 First-time Adoption of
International Financial Reporting
Standards – Subsidiary as a first-
time adopter; effective date
1 January 2022
IFRS 9 Financial Instruments –
Fees in the ’10 per cent’ test for
derecognition of financial liabilities;
effective date 1 January 2022
• Amendments to IAS 1:
Classification of Liabilities as
Current or Non-current; effective
date 1 January 2023
• Deferred Tax related to Assets
and Liabilities arising from a single
transaction - Amendments to
IAS12; effective for annual periods
beginning on or after 1 January
2023
The amendments are not expected to
have a material impact on the Group.
Going concern
The Board has undertaken a review of
the Group’s forecasts and associated
risks and sensitivities, considering
the expected impact of COVID-19 on
trading in the period from the date of
approval of the financial statements to
March 2023.
The Group had £154.0m of cash as
at 31 December 2021, with no debt
except for IFRS 16 lease liabilities of
£102.0m. Debt facilities relevant to the
review period comprise a committed
£30m BBVA RCF (May 2023 maturity),
an uncommitted UK trade debtor
discounting facility (up to £50m
depending on debtor levels) and an
uncommitted £20m UK bank overdraft
facility.
Throughout 2021, activity levels
picked up in most of the Group’s
markets and the cost control and cash
preservation methods used in 2020
were not repeated. However, due to
the pandemic reductions in travel and
entertaining expenses remain. There
continues to be a high degree of
global macro-economic uncertainty, as
COVID-19 remains a significant issue
and restrictions remain in a number of
countries across the Group.
However, given the analysis performed,
there are no plausible downside
scenarios that we believe would cause
an issue. As a result, given the strength
of performance in the year, the level
of cash in the business and Group’s
borrowing facilities, the geographical
and discipline diversification, limited
concentration risk, as well as the
ability to manage the cost base, the
Board has concluded that the Group
has adequate resources to continue
in operational existence for the period
through to March 2023.
a) Revenue and income recognition
Revenue, which excludes value added
tax (VAT), constitutes the value of
services undertaken by the Group
from its principal activities, which are
recruitment consultancy and other
ancillary services. These consist of:
•
•
revenue from temporary
placements, which represents
amounts billed for the services
of temporary staff, including the
salary cost of these staff. This is
recognised when the service has
been provided;
revenue from permanent
placements is typically based on
a percentage of the candidate’s
remuneration package and
is derived from both retained
assignments (income recognised
on completion of defined stages
of work) and non-retained
assignments (income recognised
at the date an offer is accepted by
a candidate and where a start date
has been determined). The latter
includes revenue anticipated, but
not invoiced, at the balance sheet
date, which is correspondingly
accrued on the balance sheet
within accrued income. A provision
is made against accrued income
for possible cancellations of
placements prior to, or shortly
after, the commencement of
employment; and
•
revenue from amounts billed to
clients for expenses incurred
on their behalf (principally
advertisements) is recognised
when the expense is incurred.
Interest income is accrued on a time
basis, by reference to the principal
outstanding and at the effective interest
rate applicable.
b) Cost of sales
Cost of sales consists of the salary cost
of temporary staff and costs incurred on
behalf of clients, principally advertising
costs.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 133133
c) Gross profit
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.
d) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements
of each of the Group’s entities are
measured using the currency of the
primary economic environment in which
the entity operates (“the functional
currency”). The consolidated financial
statements are presented in Sterling,
which is the Company’s functional and
presentation currency.
(ii) Transactions and balances
Foreign currency transactions
are translated into the respective
functional currency using the exchange
rates prevailing at the dates of the
transactions.
Foreign exchange gains and losses
resulting from the settlement of such
transactions and from the translation at
year end exchange rates of monetary
assets and liabilities denominated in
foreign currencies are recognised in the
income statement.
(iii) Group companies
The results and financial position of all
the Group entities (none of which has the
currency of a hyperinflationary economy)
that have a functional currency different
from the presentation currency are
translated into the presentation currency
as follows:
•
•
•
assets and liabilities for each
balance sheet presented are
translated at the closing rate at the
date of that balance sheet;
income and expenses for each
income statement are translated at
average exchange rates; and
all resulting exchange differences are
recognised in other comprehensive
income.
e) Intangible assets
(i) Goodwill
Goodwill represents the excess of
the cost of an acquisition over the
fair value of the Group’s share of the
net identifiable assets of the acquired
subsidiary at the date of acquisition.
Goodwill on the acquisition of
subsidiaries is included in intangible
assets. Goodwill is stated at cost less
any accumulated impairment losses.
Goodwill is allocated to cash-generating
units and is not amortised, but is tested
at least annually for impairment (see
accounting policy h). Gains and losses
on the disposal of an entity include the
carrying amount of goodwill relating to
the entity sold.
(ii) Computer software
Computer software acquired separately
is measured on initial recognition at
cost. Computer software developed
by the Group is measured at the cost
incurred in relation to the development
of software and related applications.
Costs are capitalised when they fulfil
the criteria in IAS 38 regarding internally
developed intangible assets. The
Group applies judgement, which is not
considered as significant, in capitalising
the development cost by assessing if it
will generate probable future economic
benefits. Costs which are incurred after
the release of software or costs which
are incurred in order to enhance existing
products are expensed in the period in
which they are incurred.
(iii) Software under construction
Software under construction relates
to cost capitalised in relation to the
development of a new operating system
and related applications. Costs are
capitalised when they fulfil the criteria in
IAS 38 regarding internally developed
intangible assets. While still under
construction, assets are tested for
impairment annually. Assets are moved
from software under construction to
computer software when they become
available for use.
(iv) Trademark
Acquired trademarks are stated at cost
and are written down over five years on a
straight-line basis, which represents the
estimated useful life of the intangible.
(v) Amortisation
Amortisation is charged to the income
statement on a straight-line basis over
the estimated useful lives of intangible
assets unless such lives are indefinite.
Goodwill has an indefinite useful life.
Computer software is amortised at 20%
per annum unless it is considered to
have a shorter life, in which case the
period of amortisation is reduced. The
cumulative amount of goodwill written off
directly to retained earnings in respect of
acquisitions prior to 31 December 1997
is £311.7m (2020: £311.7m).
f) Property, plant and equipment
Property, plant and equipment are
stated at original cost less accumulated
depreciation. Depreciation is calculated
to write off the cost less estimated
residual value of each asset evenly over
its expected useful life at the following
rates:
Leasehold improvements 10% per
annum or period of lease if shorter
Furniture, fixtures and equipment 10-
20% per annum
Motor vehicles 25% per annum
g) Investments
Fixed asset investments are stated at
cost less provision for impairment.
h) Impairment of assets
Non-financial assets
Assets that have an indefinite useful
life are not subject to amortisation and
are tested annually for impairment. An
impairment loss is recognised for the
amount by which the asset’s carrying
amount exceeds its recoverable amount.
The recoverable amount is the higher
of an asset’s fair value less costs to
sell and value in use. For the purposes
of assessing impairment, assets are
grouped at the lowest levels for which
there are separately identifiable cash
flows (cash-generating units).
Financial assets
The Group recognises an allowance
for expected credit losses (ECLs) for all
debt instruments not held at fair value
through profit or loss. ECLs are based on
the difference between the contractual
cash flows due in accordance with the
contract and all the cash flows that the
Group expects to receive, discounted at
an approximation of the original effective
interest rate.
ECLs are recognised in two stages. For
credit exposures for which there has
not been a significant increase in credit
risk since initial recognition, ECLs are
provided for credit losses that result from
default events that are possible within
the next 12 months (a 12-month ECL).
For those credit exposures for which
there has been a significant increase in
credit risk since initial recognition, a loss
allowance is required for credit losses
expected over the remaining life of the
exposure, irrespective of the timing of the
default (a lifetime ECL).
For trade receivables and contract
assets, the Group applies a simplified
approach in calculating ECLs. Therefore,
the Group does not track changes in
credit risk, but instead recognises a
loss allowance based on lifetime ECLs
at each reporting date. The Group
has established a provision matrix that
is based on its historical credit loss
experience, adjusted for forward-looking
factors specific to the debtors and the
economic environment.
Annual Report and Accounts 2021 133
134
i) Taxation
Income tax expense represents the
sum of the current tax and deferred
tax charges. The tax currently payable
is based on taxable profit for the
year. Taxable profit differs from profit
as reported in the income statement
because it excludes items of income
or expense that are taxable or
deductible in other years and it further
excludes items that are never taxable
or deductible. The Group’s liability for
current tax is calculated using tax rates
that have been enacted or substantively
enacted by the balance sheet date.
Deferred tax is recognised on
differences between the carrying
amounts of assets and liabilities in
the financial statements and the
corresponding tax bases used in the
computation of taxable profit and is
accounted for using the balance sheet
liability method.
Deferred tax liabilities are generally
recognised for all taxable temporary
differences and deferred tax assets
are recognised to the extent that it is
probable that taxable profits will be
available against which deductible
temporary differences can be utilised.
Such assets and liabilities are not
recognised if the temporary difference
arises from goodwill or from the initial
recognition (other than in a business
combination) of other assets and
liabilities in a transaction that affects
neither the taxable profit nor the
accounting profit.
Deferred tax liabilities are recognised for
taxable temporary differences arising
on investments in subsidiaries, except
where the Group is able to control the
reversal of the temporary difference
and it is probable that the temporary
difference will not reverse in the
foreseeable future. The carrying amount
of deferred tax assets is reviewed at
each balance sheet date and reduced
to the extent that it is no longer
probable that sufficient taxable profits
will be available.
Deferred tax is calculated at the tax
rates that are expected to apply in the
period when the liability is settled or the
asset realised.
Deferred tax is charged or credited to
the income statement, except when
it relates to items charged or credited
directly to OCI or equity, in which case
the deferred tax is also dealt with in OCI
or equity.
Deferred tax assets and liabilities
are offset when there is a legally
enforceable right to set off current tax
assets against current tax liabilities and
when they relate to income taxes levied
by the same taxation authority and the
Group intends to settle its current tax
assets and liabilities on a net basis.
j) Pension costs
The Group operates defined
contribution pension schemes. The
assets of the schemes are held
separately from those of the Group in
independently administered funds. The
pension costs charged to the income
statement represent the contributions
payable by the Group to the funds
during each period.
k) Leases
i) Right-of-use assets
The Group recognises right-of-use
assets at the commencement date of
the lease (i.e., the date the underlying
asset is available for use). Right-of-
use assets are measured at cost, less
any accumulated depreciation and
impairment losses, and adjusted for any
remeasurement of lease liabilities. The
cost of right-of-use assets includes the
amount of lease liabilities recognised,
initial direct costs incurred, and lease
payments made at or before the
commencement date less any lease
incentives received. Unless the Group is
reasonably certain to obtain ownership
of the leased asset at the end of the
lease term, the recognised right-of-use
assets are depreciated on a straight-line
basis over the shorter of its estimated
useful life and the lease term. Right-of-
use assets are subject to impairment.
ii) Lease liabilities
At the commencement date of the
lease, the Group recognises lease
liabilities measured at the present value
of lease payments to be made over the
lease term.
The lease payments include fixed
payments (including in-substance fixed
payments) less any lease incentives
receivable, variable lease payments
that depend on an index or a rate,
and amounts expected to be paid
under residual value guarantees.
The lease payments also include the
exercise price of a purchase option
reasonably certain to be exercised by
the Group and payments of penalties
for terminating a lease, if the lease
term reflects the Group exercising
the option to terminate. The variable
lease payments that do not depend
on an index or a rate are recognised
as expense in the period on which the
event or condition that triggers the
payment occurs.
In calculating the present value of
lease payments, the Group uses the
incremental borrowing rate at the lease
commencement date if the interest
rate implicit in the lease is not readily
determinable. After the commencement
date, the amount of lease liabilities
is increased to reflect the accretion
of interest and reduced for the lease
payments made.
In addition, the carrying amount of
lease liabilities is remeasured if there is
a modification, a change in the lease
term, a change in the in-substance
fixed lease payments or a change in the
assessment to purchase the underlying
asset.
iii) Short-term leases and leases of low-
value assets
The Group applies the short-term
lease recognition exemption to its
short-term leases of machinery and
equipment (i.e. those leases that have
a lease term of 12 months or less from
the commencement date and do not
contain a purchase option). It also
applies the lease of low-value assets
recognition exemption to leases of
office equipment that are considered
of low value (i.e. below $5,000).
Lease payments on short-term leases
and leases of low-value assets are
recognised as expense on a straight-
line basis over the lease term.
iv) Judgement in determining the lease
term of contracts with renewal options
The Group determines the lease
term as the non-cancellable term of
the lease, together with any periods
covered by an option to extend the
lease if it is reasonably certain to be
exercised, or any periods covered by
an option to terminate the lease, if it is
reasonably certain not to be exercised.
The Group has the option, under
some of its leases to lease the assets
for additional terms of three to ten
years. The Group applies judgement
in evaluating whether it is reasonably
certain to exercise the option to renew.
That is, it considers all relevant factors
that create an economic incentive
for it to exercise the renewal. After
the commencement date, the Group
reassesses the lease term if there
is a significant event or change in
circumstances that is within its control
and affects its ability to exercise (or
not to exercise) the option to renew
(e.g. a change in business strategy).
l) Segment reporting
IFRS 8 requires operating segments
to be identified on the basis of internal
reports about components of the Group
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 135135
that are regularly reviewed by the Board
to allocate resources to the segments
and to assess their performance.
Information provided to the Board is
focused on regions and as a result,
reportable segments are on a regional
basis. Transactions between segments
are recorded and allocated on an arms-
length basis.
m) Dividend distribution
Dividend distribution to the Company’s
shareholders is recognised as a liability in
the Group’s financial statements in
the period in which the dividends are
approved by (for final dividends) or paid
to (for interim dividends) the Company’s
shareholders.
n) Share-based compensation
The Group operates a number of equity-
settled, share-based compensation
plans. The accounting treatments for
the Group and parent company are
described below:
(i) Share option schemes
The fair value of the employee services
received in exchange for the grant of the
options is recognised as an expense in
the income statement of the Group with
a corresponding adjustment to equity.
In the parent company, it is capitalised
as an investment, with a corresponding
adjustment to equity. The total amount
to be expensed over the vesting period
is determined by reference to the fair
value of the options granted, excluding
the impact of any non-market vesting
conditions (for example, earnings per
share). Non-market vesting conditions
are included in assumptions about the
number of options that are expected to
become exercisable.
At each balance sheet date, the
estimate of the number of options that
are expected to become exercisable
is revised. The Group recognises
the impact of the revision of original
estimates, if any, in the income
statement, and the corresponding
adjustment to equity over the remaining
vesting period.
(ii) Management Incentive Plan
Where deferred awards are made to
Directors and senior executives under
the Management Incentive Plan, to
reflect that the awards are for services
over a longer period, the value of the
expected award is charged to the
income statement of the Group on
a straight-line basis over the vesting
period to which the award relates. In
the Parent Company, it is capitalised as
an investment in the subsidiary that is
receiving the employee service, with a
corresponding adjustment to equity.
(iii) Employee Single Incentive Plan (ESIP)
Awards under the ESIP are paid in cash
(40%) and Shares (60%), which vest in 3
tranches over a 3 year period. The value
of expected award is charged to the
income statement of the Group relative
to these vesting periods.
iv) Tax on share schemes
Where options or shares are net settled
in respect of withholding tax obligations,
these are accounted for as equity
settled transactions. Payments to local
tax authorities are accounted for as a
deduction from equity for the shares
withheld.
o) Deferred cash bonus
The Group operates a bonus scheme for
some members of staff whereby bonuses
are deferred for three years from date
of award. The bonuses are paid in full if
the employee remains employed for the
entire three-year period.
p) Repurchase of share capital
When share capital recognised as
equity is repurchased, the amount of the
consideration paid, including any directly
attributable costs, is recognised as a
change in equity.
q) Provisions
A provision is recognised in the balance
sheet when the Group has a present
legal or constructive obligation as a
result of a past event, and it is probable
that an outflow of economic benefits
will be required to settle the obligation.
Provisions are measured at the Directors’
best estimate of the expenditure required
to settle the obligation at the balance
sheet date, and are discounted to
present value where the effect is material.
Due to the increase in size of provisions,
the Group is now presenting these
separately on the balance sheet.
r) Financial assets and liabilities
Financial assets are classified, at initial
recognition, as subsequently measured
at amortised cost, fair value through
other comprehensive income (OCI), and
fair value through profit or loss.
The classification of financial assets
at initial recognition depends on the
financial assets’ contractual cash flow
characteristics and the Group’s business
model for managing them. With the
exception of trade receivables that
do not contain a significant financing
component or for which the Group
has applied the practical expedient,
the Group initially measures a financial
asset at its fair value plus, in the case
of a financial asset not at fair value
through profit or loss, transaction costs.
Trade receivables that do not contain
a significant financing component or
for which the Group has applied the
practical expedient are measured at the
transaction price determined under IFRS
15.
The Group’s financial assets at
amortised cost includes trade and
other receivables. In order for a financial
asset to be classified and measured at
amortised cost or fair value through OCI,
it needs to give rise to cash flows that
are ‘solely payments of principal and
interest (SPPI)’ on the principal amount
outstanding. This assessment is referred
to as the SPPI test and is performed at
an instrument level.
The Group’s business model for
managing financial assets refers to how
it manages its financial assets in order
to generate cash flows. The business
model determines whether cash flows
will result from collecting contractual
cash flows, selling the financial assets,
or both.
Cash and cash equivalents includes
cash-in-hand, deposits held at call with
banks, and other short-term highly liquid
investments with original maturities of
three months or less. Bank overdrafts
that are repayable on demand and
form an integral part of the Group’s
cash management are included as a
component of cash and cash equivalents
for the purpose of the statement of cash
flows. Prepayments and Accrued Income
are held at amortised cost.
All financial liabilities are recognised
initially at fair value and, in the case of
loans and borrowings and payables, net
of directly attributable transaction costs.
The Group’s financial liabilities include
trade and other payables and derivative
financial instruments.
Financial liabilities are classified, at initial
recognition, as financial liabilities through
profit or loss, loans and borrowings,
payables, or as derivatives designated
as hedging instruments in an effective
hedge, as appropriate. The Group has
derivative contracts at the balance sheet
date that have been valued at fair value
through the income statement.
s) Areas of accounting estimation
The preparation of financial statements in
conformity with IFRS requires the use of
certain critical accounting estimates and
judgements. It also requires management
to exercise judgement in the process
of applying the Company’s accounting
policies.
Estimates and judgements are
continually evaluated and are based on
historical experience and other factors,
Annual Report and Accounts 2021 135
136
management judgements about the
probable outcome of uncertain tax
positions. Management base their
judgements on the latest information
available about the positions expected
to be taken by each tax authority.
Actual outcomes and settlements may
differ significantly from the estimates
recorded in these consolidated financial
statements. This may affect income
tax expense reported in future years’
consolidated income statements.
The uncertain tax position provision
recognised as at 31 December 2021
is £3.4m.
Intangible Assets
There is judgement over the appropriate
costs which can be capitalised in
accordance with IAS 38. Management
have performed a review of the costs
capitalised to ensure appropriate
classification under IAS 38 and consider
there to be no trigger for impairment.
We considered the IFRIC agenda
decision in March 2021 in respect
of cloud computing and specifically
the treatment of configuration and
customisation costs. We have analysed
these in respect of Customer Connect
(CRM platform) and not identified any
material costs which would not be
appropriate for capitalisation under the
IFRIC guidance and IAS 38.
t) Employee Benefit Trust
The Employee Benefit Trust is
considered a separate legal entity
and not an extension of the parent
company. It is included in the
consolidated results of the Group as it
is deemed to have control of the entity.
u) Government grants
Government grants are recognised
where there is reasonable assurance
that the grant will be received and all
attached conditions will be complied
with. When the grant relates to an
expense item, it is recognised as
income on a systematic basis over
the periods that the related costs, for
which it is intended to compensate, are
expensed. When the grant relates to
an asset, it is recognised as income in
equal amounts over the expected useful
life of the related asset.
including expectations of future events
that are believed to be reasonable
under the circumstances.
In preparing the Consolidated
Financial Statements management
has considered the impact of climate
change, particularly in the context of
the disclosures included in the Strategic
Report this year and the stated net zero
targets. These considerations did not
have a material impact on the financial
reporting judgements and estimates,
consistent with the assessment that
climate change is not expected to
have a significant impact on the
Group’s going concern assessment to
September 2022 nor the viability of the
Group over the next three years as the
Group’s Balance sheet is primarily made
up of short-term assets and liabilities.
The following are areas where
appropriate accounting necessarily
involves management judgement
and estimation. However, none of the
estimates described are considered
to have a significant risk of resulting in
a material adjustment to the carrying
amount of the related assets and
liabilities within the next financial year.
Accordingly, they are not considered
to be major sources of estimation
uncertainty.
Note 13 – Trade and other
receivables
There is uncertainty regarding
customers who may not be able
to pay as their invoices fall due as
at 31 December 2021. In total the
Group holds £265.7m of Gross Trade
Receivables. A provision for £11.1m
has been recognised based on the
expected credit losses, revenue
reversals or balances which are in
litigation.
In reviewing the appropriateness of the
provisions in respect of recoverability
of trade receivables, consideration has
been given to the economic climate in
the respective markets, the ageing of
the debt and the potential likelihood
of default. If the economic climate
were to deteriorate across a number
of countries the portfolio could be
impaired by an amount greater than
materiality. This scenario is however
considered sufficiently remote such
that no reasonably possible changes in
assumptions are likely to cause material
further impairment next year. Please
see note 21 for an analysis of expected
credit losses and revenue reversals.
Deferred Tax
At 31 December 2021, PageGroup’s
deferred tax assets are £19.7m (2020:
£17.7m). The ultimate realisation of
deferred tax assets is dependent
upon the generation of future taxable
income during the periods in which
those temporary differences become
deductible or in which tax losses can
be utilised. The tax effect of deductible
temporary differences and unused tax
losses are recognised as a deferred
tax asset when it becomes probable
that the tax losses and deductible
temporary differences will be utilised. In
making assessments regarding deferred
tax assets, management considers
the scheduled reversal of deferred
tax liabilities, projected future taxable
income, the availability to carry back
losses and tax planning strategies.
At 31 December 2021, based upon the
projections for future taxable income
over the periods in which deferred tax
assets are deductible, management
believes that it is more likely than
not that PageGroup will realise the
benefits of these deductible differences.
The amount of deferred tax assets
considered realisable could however
be reduced in subsequent years if
estimates of future taxable income
during their carry forward periods are
reduced, or rulings by the tax authorities
are unfavourable. Estimates are
therefore subject to change due to both
market-related and government-related
uncertainties, as well as PageGroup’s
own future decisions.
Uncertain tax positions
Current tax is the expected tax payable
on the taxable income for the year,
using tax rates enacted or substantively
enacted at the balance sheet date,
and any adjustments to tax payable in
respect of previous years.
Uncertain tax positions are assessed
and measured on an issue by issue
basis within the jurisdictions that we
operate using management’s estimate
of the most likely outcome. Where
management determines that a greater
than 50% probability exists that the tax
authorities would accept the position
taken in the tax return, amounts are
recognised in the consolidated financial
statements on that basis. Where the
amount of tax payable or recoverable
is uncertain, the Group recognises
a liability or asset based on either:
management’s judgement of the most
likely outcome; or, when there is a
wide range of possible outcomes, a
probability weighted average approach.
The Group recognises interest on late
paid taxes as part of financing costs.
The Group recognises penalties, if
applicable, as part of administrative and
other expenses.
These estimates include significant
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 137137
2. 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 described in Note 1. 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. Segments are aggregated in accordance with management ownership, determined by the possession of similar
characteristics such as geography, market maturity and economic environment. No judgements were applied to identify the reportable
segments.
(a) Revenue, gross profit and operating profit by reportable segment
2021
EMEA
Asia Pacific
Americas
United Kingdom
Operating profit
Financial expense
Revenue
2021
£’000
869,574
282,008
220,671
271,487
–
–
Gross
profit
2021
£’000
431,960
179,296
138,520
127,944
–
–
Revenue/gross profit/profit before tax
1,643,740
877,720
2020
EMEA
Asia Pacific
Americas
United Kingdom
Operating profit
Financial expense
Revenue
2020
£’000
717,294
215,959
154,257
217,281
–
–
Gross
profit
2020
£’000
319,360
121,113
88,791
80,985
–
–
Revenue/gross profit/profit before tax
1,304,791
610,249
The above analysis by destination is not materially different to the analysis by origin.
Operating
profit
2021
£’000
93,435
39,004
19,163
16,908
168,510
(1,865)
166,645
Operating
profit
2020
£’000
30,605
3,789
(7,021)
(10,345)
17,028
(1,484)
15,544
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 income tax assets and liabilities. Non-current assets include property, plant and equipment,
computer software, goodwill and other intangibles.
(b) Segment assets, liabilities, non-current assets and capital expenditure by reportable segment
EMEA
Asia Pacific
Americas
United Kingdom
Segment assets/liabilities
Income tax
Total assets
Total liabilities
2021
£’000
285,573
132,995
94,581
198,096
711,245
13,214
724,459
2020
£’000
230,350
111,090
80,662
190,838
612,940
16,889
629,829
2021
£’000
2020
£’000
201,748
163,961
64,405
43,789
52,171
362,113
22,241
384,354
54,899
41,071
41,632
301,563
12,365
313,928
The analyses in notes (d) revenue and gross profit by discipline (being the professions of candidates placed) and (e) revenue and
gross profit by strategic market have been included as additional disclosure over and above the requirements of IFRS 8 “Operating
Segments”. Strategic markets are defined in the Strategic Review on pages 15 and 16.
Annual Report and Accounts 2021 137
138
EMEA
Asia Pacific
Americas
United Kingdom
EMEA
Asia Pacific
Americas
United Kingdom
Capital expenditure
EMEA
Asia Pacific
Americas
United Kingdom
Property, plant and
equipment
Intangible assets
2021
£’000
10,571
4,318
5,325
4,622
2020
£’000
10,810
4,451
6,052
5,088
24,836
26,401
2021
£’000
2,247
279
–
46,639
49,165
2020
£’000
2,666
371
120
38,648
41,805
Right-of-use assets
Lease liabilities
2021
£’000
54,413
16,132
10,692
13,719
94,956
2020
£’000
47,941
13,924
14,862
18,687
95,414
2021
£’000
57,143
17,154
13,432
14,611
2020
£’000
51,070
14,532
17,590
20,277
102,340
103,469
Property, plant and
equipment
2021
£’000
2020
£’000
4,265
2,368
1,243
2,358
10,234
1,341
1,558
1,107
886
4,892
Intangible assets
2021
£’000
27
73
–
17,919
18,019
2020
£’000
40
36
206
17,488
17,770
The below analysis in note (c) relates to the requirement of IFRS 15 to disclose disaggregated revenue streams.
(c) Revenue and gross profit generated from permanent and temporary placements
Permanent
Temporary
(d) Revenue and gross profit by discipline
Accounting and Financial Services
Legal, Technology, HR, Secretarial and other
Engineering, Property & Construction, Procurement & Supply Chain
Marketing, Sales and Retail
(e) Revenue and gross profit by strategic market
Large, Proven markets
Large, High Potential markets
Medium and Small, High Margin markets
Revenue
Gross profit
2021
£’000
682,233
961,507
2020
£’000
441,467
863,324
1,643,740
1,304,791
2021
£’000
676,099
201,621
877,720
2020
£’000
436,689
173,560
610,249
Revenue
2021
£’000
609,012
511,466
349,770
173,492
2020
£’000
528,202
374,406
273,771
128,412
1,643,740
1,304,791
Revenue
2021
£’000
867,634
551,547
224,559
2020
£’000
728,736
397,166
178,889
1,643,740
1,304,791
Gross profit
2021
£’000
2020
£’000
281,549
212,243
260,819
207,200
128,152
877,720
Gross profit
2021
£’000
406,618
332,539
138,563
877,720
166,249
141,829
89,928
610,249
2020
£’000
289,202
218,196
102,851
610,249
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 139139
3. PROFIT FOR THE YEAR
Profit for the year is stated after charging:
Employment costs (Note 4)
Net exchange losses
Depreciation of property, plant and equipment – owned (Note 10)
Amortisation of intangibles (Note 12)
Expected credit losses and provision for revenue reversals (Note 22)
(Profit)/Loss on sale of property, plant and equipment and computer software
Depreciation of right-of-use assets (Note 11)
2021
£’000
2020
£’000
554,753
438,111
6,891
8,213
4,937
9,864
10,217
14,653
17,920
27,773
(59)
262
35,298
37,265
Fees payable to the Company’s auditor:
Fees payable to the Company’s auditor for the audit of the Company’s annual accounts
433
463
Fees payable to the Company’s auditor and associates for other services:
– The audit of the Company’s subsidiaries pursuant to legislation
Total audit fees
– Audit related assurance services
– Other non-audit services
Total non-audit fees
Total fees
4. EMPLOYEE INFORMATION
755
755
1,188
1,218
52
7
59
52
32
84
1,247
1,302
The average number of employees (including Executive Directors) during the year and total number of employees (including Executive
Directors) at 31 December 2021 were as follows:
Management
Client services
Administration
Employment costs (including Directors’ emoluments) comprised:
Wages and salaries
Social security costs
Pension costs – defined contribution plans
Share-based payments and deferred cash plan
2021
Average
No.
2020
Average
No.
At 31 Dec
2021
No.
At 31 Dec
2020
No.
356
5,220
1,643
7,219
341
5,030
1,559
6,930
376
5,705
1,757
7,838
339
4,806
1,549
6,694
2021
£’000
2020
£’000
471,918
364,686
51,523
48,816
18,736
16,731
12,576
7,878
554,753
438,111
During 2020, the Group utilised various Government support schemes around the world in response to the COVID-19 pandemic. In
accordance with IAS 20 - Government Grants and Disclosure of Government Assistance, the income received from these grants is
presented net against the payroll expenses within wages and salaries in the Consolidated Income Statement. The total income recognised
in 2020 was £11.2m.
No staff are employed by the parent company (2020: none) hence no remuneration has been disclosed for the Company. Remuneration for
Directors for their services on behalf of the parent company are included in the Directors’ Remuneration Report on pages 95 to 116.
Annual Report and Accounts 2021 139
140
5. FINANCIAL INCOME/(EXPENSES)
Financial income
Interest receivable
Financial expenses
Interest payable
Interest on lease liabilities
2021
£’000
290
290
(841)
(1,314)
(2,155)
6. INCOME TAX EXPENSE
The charge for taxation is based on the effective annual tax rate of 29.0% on profit before tax (2020: 136.9%).
Analysis of charge in the year
UK income tax at 19.00% (2020: 19.00%) for year
Overseas income tax
Adjustments in respect of prior years
Deferred tax
Adjustment in respect of prior years
Origination and reversal of temporary differences
Derecognition of losses and other tax attributes
Impact of tax rate changes
Deferred tax income
Total tax expense in the income statement
Reconciliation of effective tax rate
Profit before taxation
2021
£’000
11,776
42,303
(3,214)
50,865
(1,673)
(6,684)
5,481
300
(2,576)
48,289
2021
£’000
166,645
%
2020
£’000
15,544
Profit before tax multiplied by the standard rate of corporation tax in the UK
31,663
19.0
2,952
Effects of:
Disallowable items and other permanent differences
Unrelieved overseas losses
Derecognition/(recognition) of overseas losses and other tax attributes
Other tax movements
Higher tax rates on overseas earnings
Other tax overseas
Movement of rate difference
Adjustment to tax charge in respect of prior periods
Tax expense and effective rate for the year
Tax recognised directly in equity
Relating to settled transactions
2,395
1,855
3,626
392
6,139
6,805
301
(4,887)
48,289
1.4
1.1
2.2
0.2
3.7
4.1
0.2
(2.9)
29.0
1,947
1,954
1,525
694
2,038
6,855
662
2,659
21,286
2021
£’000
1,387
2020
£’000
588
588
(413)
(1,659)
(2,072)
2020
£’000
(3,897)
25,290
(164)
21,229
2,823
(6,908)
3,480
662
57
21,286
%
19.0
12.5
12.5
9.8
4.5
13.1
44.1
4.3
17.1
136.9
2020
£’000
18
We have generated profits in overseas countries which have higher tax rates and are subject to additional taxes on profits which have
contributed 7.8% to the tax rate in 2021. Disallowable and other permanent differences are broadly in line with prior years and net
derecognition of overseas losses and other tax attributes that we could not recognise due to the requirement to have profits against
which to offset in the foreseeable future increase the rate by 4.7%. Adjustments in respect of prior periods are one-off in nature and
reduce the rate by 2.9%. These factors add to the basic UK rate of 19% to give the total effective tax rate of 29.0%.
The Finance Act 2016 included legislation to reduce the main rate of UK corporation tax from 20% to 19% from 1 April 2017 and to
17% from 1 April 2020. The rate reduction to 17% was subsequently reversed by the Finance Act 2020, such that the main rate of
UK corporation tax from 1 April 2021 remains at 19%. The Finance Act 2021 confirmed an increase of UK corporation tax rate from
19% to 25% with effect from 1 April 2023 and this was substantively enacted by the statement of financial position date and therefore
included in these financial statements. Temporary differences have been remeasured using the enacted tax rates that are expected to
apply when the liability is settled or the asset realised.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 141141
7. CURRENT TAX ASSETS AND LIABILITIES
The current tax asset of £13.2m (2020: £16.9m), and current tax liability of £22.2m (2020: £12.4m) for the Group, and current tax
asset and liability of £nil (2020: £nil) for the parent company, represent the amount of income taxes recoverable and payable in respect
of current and prior periods. The Group maintains a provision in relation to disputes and uncertain tax positions, including transfer
pricing, which is included in the current tax liability.
8. DIVIDENDS
2021
£’000
2020
£’000
Amounts recognised as distributions to equity holders in the year:
Final dividend for the year ended 31 December 2020 of 0.00p per Ordinary share (2019: 0.00p)
Interim dividend for the year ended 31 December 2021 of 4.70p per Ordinary share (2020: 0.00p)
Special dividend for the year ended 31 December 2021 of 26.71p per Ordinary share (2020: 0.00p)
–
14,998
85,232
100,230
Amounts proposed as distributions to equity holders in the year:
Proposed final dividend for the year ended 31 December 2021 of 10.30p per Ordinary share (2020: 0.00p)
32,912
–
–
–
–
The proposed final dividend for 2019 of 9.40p per ordinary share, or £30.2m, which was due for payment in June 2020, was
cancelled as a result of the ongoing uncertainty as a result of the COVID-19 pandemic.
The proposed final dividend had not been approved by the Board at 31 December and therefore has not been included as a liability.
The proposed final dividend of 10.30p (2020: nil) per ordinary share will be paid on 17 June 2022 to shareholders on the register at
close of business on 20 May 2022.
9. EARNINGS PER ORDINARY SHARE
The calculation of the basic and diluted earnings per share is based on the following data:
Earnings
Earnings for basic and diluted earnings per share (£’000)
Number of shares
Weighted average number of shares used for basic earnings per share (‘000)
Dilutive effect of share plans (‘000)
Diluted weighted average number of shares used for diluted earnings per share (‘000)
Basic earnings per share
Diluted earnings per share
The above results relate to continuing operations.
Basic
2021
£’000
2020
£’000
118,356
(5,742)
number
number
318,237
319,664
1,232
925
319,469
320,589
pence
pence
37.2
37.0
(1.8)
(1.8)
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average
number of Ordinary shares in issue during the year, excluding unallocated Ordinary shares purchased by the Employee Benefit Trust
and held in the reserve.
Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of Ordinary shares outstanding to assume
conversion of all dilutive potential Ordinary shares. This calculation determines the number of shares that could have been acquired at
fair value (determined as the average market price of the Company’s shares) based on the monetary value of the subscription rights
attached to the outstanding share options. The number of shares calculated in the basic earnings per share is then adjusted to reflect
the number of shares deemed to be issued for nil consideration as a result of the potential exercise of existing share options.
The remaining share options that are currently not dilutive and hence excluded from the dilutive earnings per share calculation remain
potentially dilutive until they are either exercised or they lapse.
Annual Report and Accounts 2021 141
142
10. PROPERTY, PLANT AND EQUIPMENT
Group
Cost
At 1 January
Additions
Disposals
Effect of movements in foreign exchange
At 31 December
Depreciation
At 1 January
Charge for the year
Disposals
Effect of movements in foreign exchange
At 31 December
Net book value
At 31 December
Group
Cost
At 1 January
Additions
Disposals
Effect of movements in foreign exchange
At 31 December
Depreciation
At 1 January
Charge for the year
Disposals
Effect of movements in foreign exchange
At 31 December
Net book value
At 31 December
2021
Leasehold
improve-
ments
£’000
Furniture,
fixtures and
equipment
£’000
Motor
vehicles
£’000
48,125
2,696
(2,379)
(1,640)
46,802
33,055
4,097
(1,916)
(743)
34,493
41,050
6,778
(1,965)
(1,802)
44,061
30,389
3,759
(273)
(1,318)
32,557
1,639
759
(284)
(65)
2,049
969
357
(246)
(54)
1,026
Total
£’000
90,814
10,233
(4,628)
(3,507)
92,912
64,413
8,213
(2,435)
(2,115)
68,076
12,309
11,504
1,023
24,836
2020
Leasehold
improve-
ments
£’000
Furniture,
fixtures and
equipment
£’000
Motor
vehicles
£’000
46,953
2,579
(1,721)
314
48,191
1,568
(9,523)
814
48,125
41,050
28,932
5,153
(1,306)
276
34,642
4,333
(9,206)
620
33,055
30,389
1,428
745
(489)
(45)
1,639
1,073
378
(423)
(59)
969
Total
£’000
96,572
4,892
(11,733)
1,083
90,814
64,647
9,864
(10,935)
837
64,413
15,070
10,661
670
26,401
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 143143
11. LEASES
Group
Right-of-use assets
At 1 January 2020
Additions
Disposals
Depreciation expense
Effect of movements in foreign exchange
At 31 December 2020 and 1 January 2021
Additions
Disposals
Depreciation expense
Effect of movements in foreign exchange
At 31 December 2021
Lease liabilities
As at 1 January
Additions
Disposals
Interest expense
Payments
Effect of movements in foreign exchange
As at 31 December
12. INTANGIBLE ASSETS
Property
£’000
Motor Vehicles
£’000
Other assets
£’000
Total
£’000
797
919
–
(618)
–
1,098
513
–
(607)
–
1,004
2021
£’000
(103,469)
(45,155)
6,387
(1,314)
37,294
3,917
120,246
17,708
(7,228)
(37,265)
1,953
95,414
44,603
(6,197)
(35,298)
(3,566)
94,956
2020
£’000
(128,612)
(17,794)
7,467
(1,659)
39,234
(2,105)
(102,340)
(103,469)
105,768
13,377
(3,947)
(28,969)
1,370
87,599
35,548
(5,861)
(27,785)
(3,245)
86,256
13,681
3,412
(3,281)
(7,678)
583
6,717
8,542
(336)
(6,906)
(321)
7,696
2021
Group
Cost
At 1 January
Additions
Disposals
Effect of movements in
foreign exchange
At 31 December
Amortisation
At 1 January
Charge for the year
Disposals
Effect of movements in
foreign exchange
At 31 December
Net book value
At 31 December
Computer
software,
assets under
construction
£’000
Computer
software
£’000
Subtotal
£’000
Goodwill
£’000
Trademark
£’000
Subtotal
£’000
Total
£’000
59,133
15,479
(1,330)
(513)
2,787
2,500
-
(1)
61,920
17,979
(1,330)
(514)
1,539
-
-
-
1,460
151
2,999
64,919
151
18,130
-
-
-
-
(1,330)
(514)
72,769
5,286
78,055
1,539
1,611
3,150
81,205
22,212
10,034
(953)
(338)
30,955
–
–
–
–
–
22,212
10,034
(953)
(338)
30,955
–
-
-
-
-
902
183
-
-
902
183
-
-
23,114
10,217
(953)
(338)
1,085
1,085
32,040
41,814
5,286
47,100
1,539
526
2,065
49,165
The Group has one individually material intangible asset (Customer Connect) which is the Group’s CRM platform. The net book value at
31 December 2021 is £35.1m. The useful economic life is seven years in line with the expected life of the asset.
Annual Report and Accounts 2021 143
144
2020
Computer
software,
assets under
construction
£’000
Computer
software
£’000
Subtotal
£’000
Goodwill
£’000
Trademark
£’000
Subtotal
£’000
Total
£000
106,029
15,163
(62,210)
151
498
106,527
1,539
2,460
(131)
(40)
17,623
(62,341)
111
–
–
–
1,313
147
2,852
109,379
147
17,770
–
–
–
–
(62,341)
111
59,133
2,787
61,920
1,539
1,460
2,999
64,919
69,560
14,516
(61,959)
95
22,212
–
–
–
–
–
69,560
14,516
(61,959)
95
22,212
–
–
–
–
–
765
137
–
–
765
137
–
–
70,325
14,653
(61,959)
95
902
902
23,114
36,921
2,787
39,708
1,539
558
2,097
41,805
Group
Cost
At 1 January
Additions
Disposals
Effect of movements in
foreign exchange
At 31 December
Amortisation
At 1 January
Charge for the year
Disposals
Effect of movements in
foreign exchange
At 31 December
Net book value
At 31 December
IMPAIRMENT TESTS FOR GOODWILL
Goodwill is allocated to the Group’s cash-generating units (CGUs) identified according to the country of operation. A summary of the
goodwill allocation is presented below:
UK
USA
Singapore
2021
£’000
1,274
214
51
1,539
2020
£’000
1,274
214
51
1,539
In assessing value in use, the estimated future cash flows are calculated by preparing cash flow forecasts derived from the most
recent financial budget, management projections for five years, followed by an assumed growth rate of 0%, which does not exceed
the long-term average growth rate of the relevant markets and reflects long-term wage inflation fee growth. Management applied a
discount rate of 8%, representing the weighted average cost of capital for the Group, to the estimated future cash flows to calculate
the terminal value of those cash flows. If the recoverable amount of an asset is estimated to be less than its carrying amount, the
carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expense. Management
believes that no reasonably possible change in any of the above key assumptions would cause the carrying value of goodwill
allocated to any CGU to materially exceed its recoverable amount.
The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired. It is the
opinion of the Directors that at 31 December 2021 there was no impairment of goodwill.
13. INVESTMENTS
Company
Cost at 1 January 2021
Transactions relating to share plans for subsidiaries’ employees
Cost at 31 December 2021
Subsidiary undertakings
£’000
534,795
7,053
541,848
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 145145
The Company’s subsidiary undertakings at 31 December 2021, their principal activities and countries of incorporation are set
out below:
Name of undertaking
Michael Page International
Argentina SA
Country of
incorporation
Principal
activity
Registered office
Argentina
Recruitment Consultancy
Cordoba 883, Piso 9, Ciudad de Buenos Aires,
C1054AAH, Argentina
Page Personnel Argentina Servicios
Eventuales SA
Argentina
Recruitment Consultancy
Cordoba 883, Piso 9, Ciudad de Buenos Aires,
C1054AAH, Argentina
Michael Page International (Australia)
Pty Limited
Australia
Recruitment Consultancy
Level 21, 9 Castlereagh Street, Sydney, NSW 2000,
Australia
Michael Page International Austria GmbH
Austria
Recruitment Consultancy
QBC4, Karl Popper-Straße 4/1.OG Top 3, Wien, 1100
Austria
Michael Page International (Belgium) NV/SA
Belgium
Recruitment Consultancy
Place du Champ de Mars 5 , 1050 Brussels, Belgium
Page Interim (Belgium) NV/SA
Belgium
Recruitment Consultancy
Place du Champ de Mars 5 , 1050 Brussels, Belgium
Michael Page International Do Brasil -
Recrutamento Especializado Ltda
Brazil
Recruitment Consultancy
Rua Olimpíadas nº 205, sala: 111, 112, 113 e 114 - 11º
andar, Vila Olímpia, Sao Paulo, 04551-000 - SP, Brasil
Page Interim Do Brasil - Recrutamento
Especializado Ltda
Brazil
Recruitment Consultancy
Rua Olimpíadas nº 205, sala: 111, 112, 113 e 114 - 11º
andar, Vila Olímpia, Sao Paulo, 04551-000 - SP, Brasil
Page Personnel do Brasil - Recrutamento
Especializado e servicos corporativos Ltda
Brazil
Recruitment Consultancy
Rua Olimpíadas nº 205, sala: 111, 112, 113 e 114 - 11º
andar, Vila Olímpia, Sao Paulo, 04551-000 - SP, Brasil
Michael Page International Canada Limited
Canada
Recruitment Consultancy
Michael Page International Chile Ltda
Chile
Recruitment Consultancy
130 Adelaide Street West, 21st Floor, Toronto, Ontario,
M5H 1J8, Canada
Magdelana 181, Piso 1, Depto. 1601, Las Condes,
Santiago 7550055, Chile
Page Personnel International
Chile Ltda
Chile
Recruitment Consultancy
Magdelana 181, Piso 1, Depto 101, Las Condes,
Santiago 7550055, Chile
Page Consulting Chile Ltda
Chile
Recruitment Consultancy
Av. El Bosque Norte 0177, Office 602, Santiago, 755-
0100, Chile
Empresa de Servicios Transitorios Page Interim
Chile Limitada
Chile
Recruitment Consultancy
Magdelana181, Piso 1, Depto 101, Las Condes,
Santiago 7550055, Chile
Michael Page (Beijing)
Recruitment Co., Ltd
China
Recruitment Consultancy
Michael Page (Shanghai) Recruitment Co., Ltd
China
Recruitment Consultancy
Room 1009 1012, 10/F, West Tower, World Financial
Centre, No.1 East 3rd Ring Middle Road, Chaoyang
District, Beijing, China 100020
Level 18, HKRI Taikoo Hui Tower2, 288 Shimen Yi
Road, JingAn District, Shanghai 200041, China
Michael Page International (Shanghai) Consulting
Limited
China
Non-Trading
Suite 1010, Shanghai Kerry Centre, 1515 Nanjing West
Road, Shanghai, China
Page Contracting (Shanghai) Co. Ltd
China
Recruitment Consultancy
Room 1812 1801-1811, /18, HKRI Taikoo Hui, No.288
Shimen Yi Road, Jing’An, Shanghai, 200041, China
Michael Page International Colombia SAS
Colombia
Recruitment Consultancy
Calle 81 # 11 – 08 Piso 11, Bogotá, D.C., Colombia
Page Interim Colombia SAS
Colombia
Non-Trading
Calle 81 # 11 – 08 Piso 11, Bogotá, D.C., Colombia
Annual Report and Accounts 2021 145
146
Name of undertaking
Country of
incorporation
Principal
activity
Registered office
Michael Page Czech Republic s.r.o
Czech Republic Recruitment Consultancy
Pobřežní 249/46, Karlín, Praha 8, 186 00, Czech
Republic
Michael Page Partnership Limited
England and
Wales
Non-Trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Michael Page Employment
Services Limited
LPM (Professional Recruitment) Limited
England and
Wales
England and
Wales
Recruitment Consultancy
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Holding company
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Accountancy Additions Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Slamway Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
(The) Assessment Centre Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
LPM (Group Services) Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
(The) Page Partnership Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Sales Recruitment Specialists Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Michael Page International Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Michael Page International
1982 Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Michael Page International
Investment Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Michael Page International
Finance Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Page Personnel (UK) Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Michael Page Holdings Limited
Michael Page International
Holdings Limited
Michael Page International
Recruitment Limited*
Michael Page Limited
England and
Wales
England and
Wales
England and
Wales
Support services
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Holding company
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Recruitment Consultancy
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UKSurrey
KT15 2NX, UK
Michael Page International
Southern Europe Limited*
England and
Wales
Holding company
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Michael Page UK Limited
England and
Wales
Non-trading
200 Dashwood Lang Road, Bourne Business
Park, Addlestone, Surrey KT15 2NX, UK
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 147147
Name of undertaking
Michael Page Recruitment
Group Limited
Country of
incorporation
Principal
activity
England and Wales Holding company
Registered office
200 Dashwood Lang Road, Bourne Business Park, Addlestone,
Surrey KT15 2NX, UK
Page Outsourcing UK Limited
England and Wales
Recruitment Consultancy
2nd Floor 61 Aldwych, London, United Kingdom, WC2B 4AE, UK
Michael Page International
France SAS
France
Recruitment Consultancy
164 Avenue Achille Peretti, 92522 Neuilly-sur-Seine, Paris, France
MP Financial Services France SAS France
Support services
164 Avenue Achille Peretti, 92522 Neuilly-sur-Seine, Paris, France
Page Personnel SAS
France
Recruitment Consultancy
164 Avenue Achille Peretti, 92522 Neuilly-sur-Seine, Paris, France
Michael Page Business
Services SARL
Michael Page Ingénieurs et
Informatique SARL
France
Recruitment Consultancy
164 Avenue Achille Peretti, 92522 Neuilly-sur-Seine, Paris, France
France
Recruitment Consultancy
164 Avenue Achille Peretti, 92522 Neuilly-sur-Seine, Paris, France
Michael Page Tertiaire SARL
France
Recruitment Consultancy
164 Avenue Achille Peretti, 92522 Neuilly-sur-Seine, Paris, France
Michael Page Nord SARL
France
Recruitment Consultancy
1, Rue Esquermoise, 59800 Lille, France
Michael Page Sud SARL
France
Recruitment Consultancy
48, Rue de la République, 69002 Lyon, France
MP Advertising SAS
France
Support Services
164 Avenue Achille Peretti, 92522 Neuilly-sur-Seine, Paris, France
Page Consulting SARL
France
Recruitment Consultancy
164 Avenue Achille Peretti, 92522 Neuilly-sur-Seine, Paris, France
MP EDP SARL
France
Support Services
164 Avenue Achille Peretti, 92522 Neuilly-sur-Seine, Paris, France
Michael Page International Monaco
SARL
France
Recruitment Consultancy
7 Rue de l’Industrie, 98000 Monaco
Michael Page International
(Deutschland) GmbH
Germany
Recruitment Consultancy
Carl-Theodor-Str. 1, Düsseldorf, 40213, Germany
Page Personnel Services GmbH
Germany
Recruitment Consultancy
Carl-Theodor-Str. 1, Düsseldorf, 40213, Germany
Page Personnel (Deutschland)
GmbH
Germany
Recruitment Consultancy
Carl-Theodor-Str. 1, Düsseldorf, 40213, Germany
Michael Page Interim GmbH
Germany
Recruitment Consultancy
Carl-Theodor-Str. 1, Düsseldorf, 40213, Germany
Michael Page International (Hong
Kong) Limited
Hong Kong
Recruitment Consultancy
Suite 1701, 17F Central Tower, 28 Queen’s Road Central, Central
Hong Kong
Michael Page International
Recruitment Pvt Ltd
India
Recruitment Consultancy
5th Floor, 2 North Avenue, Maker Maxity, Bandra-Kurla Complex,
Bandra (E), Mumbai 400051, India
PT Michael Page Internasional
Indonesia
Indonesia
Recruitment Consultancy
One Pacific Place, Suites B-F, Level 12, Sudirman Central
Business District, Jl. Jend. Sudirman Kav 52-53, Jakarta 12190,
Indonesia
Michael Page International
(Ireland) Limited
Michael Page International
Italia Srl
Ireland
Recruitment Consultancy
6th Floor, Southbank House, Barrow Street, Dublin 4, Ireland
Italy
Recruitment Consultancy
Galleria Passarella, 2, Milan, 20122, Italy
Annual Report and Accounts 2021 147
148
Name of undertaking
Country of
incorporation
Principal
activity
Registered office
Page Personnel Italia SpA
Italy
Recruitment Consultancy
Galleria Passarella, 2, Milan, 20122, Italy
Michael Page International (Japan) K.K.
Japan
Recruitment Consultancy
6F Hulic Kamiyacho Building, 4-3-13 Toranomon,
Minato-ku, Tokyo 105-0001, Japan
Agensi Pekerjaan Michael Page International
(Malaysia) SDN BHD
Malaysia
Recruitment Consultancy
10th Floor, Wisma Hamjah-Kwong Hing, No.1
Leboh Ampang, 50100 Kuala Lumpur
Page Contracting (Malaysia) Sdn Bhd
Malaysia
Contracting/Temporary
placements
Level 19-1 Menara Millennium, Jalan Damanlela,
Pusat Bandar Damansara, 50490 Kuala Lumpur
W.P. Kuala Lumpur, Malaysia
Michael Page (Mauritius) Limited
Mauritius
Recruitment Consultancy
5th Floor Atchia Building, Cnr of Suffren and Eugene
Laurent Streets, Port Louis, Republic of Mauritius
Michael Page International
(Mauritius) Limited
Mauritius
Recruitment Consultancy
5th Floor Atchia Building, Cnr of Suffren and Eugene
Laurent Streets, Port Louis, Republic of Mauritius
Michael Page International Mexico
Reclutamiento Especializado, S.A. de C.V.
Mexico
Recruitment Consultancy
Newton 293, Piso 3, Col. Polanco , Vseccion, Del.
Miguel Hidalgo, Z.C., CDMX, 11570, Mexico
Michael Page International Mexico
Servicios Corporativos SA de CV
Page Interim Mexico Servicios
SA de CV
Mexico
Recruitment Consultancy
Newton 293, Piso 3, Col. Polanco , Vseccion, Del.
Miguel Hidalgo, Z.C., CDMX, 11570, Mexico
Mexico
Recruitment Consultancy
Newton 293, Piso 3, Col. Polanco , Vseccion, Del.
Miguel Hidalgo, Z.C., CDMX, 11570, Mexico
Page México Operaciones PG S.A. DE C.V. Mexico
Recruitment Consultancy
Page Consulting México S.A. DE C.V.
Mexico
Recruitment Consultancy
Page Resourcing Process S.A. DE C.V.
Mexico
Recruitment Consultancy
Page Internacional ADM S.A. DE C.V.
Mexico
Recruitment Consultancy
Michael Page International (Maroc)
SARL AU
Morocco
Recruitment Consultancy
Michael Page International (Nederland) B.V. Netherlands
Recruitment Consultancy
Page Interim B.V.
Netherlands
Recruitment Consultancy
Michael Page International Panama S.A.
Panama
Recruitment Consultancy
Newton 293, Piso 3, Col. Polanco , Vseccion, Del.
Miguel Hidalgo, Z.C., CDMX, 11570, Mexico
Newton 293, Piso 3, Col. Polanco , Vseccion, Del.
Miguel Hidalgo, Z.C., CDMX, 11570, Mexico
Newton 293, Piso 3, Col. Polanco , Vseccion, Del.
Miguel Hidalgo, Z.C., CDMX, 11570, Mexico
Newton 293, Piso 3, Col. Polanco , Vseccion, Del.
Miguel Hidalgo, Z.C., CDMX, 11570, Mexico
Angle rue Mahassine Arrouyani et Ali Abderrazak,
4e étage, Quartier Racine 20100 Casablanca,
Morocco
Strawinskylaan 421, 107XX, Amsterdam,
Netherlands
Strawinskylaan 421, 107XX, Amsterdam,
Netherlands
Punta Pacifica, Blvrd Pacifica Oceania Business
Plaza, Torre 2000, Piso 43, Panama
Michael Page International
Peru S.R.L
Peru
Recruitment Consultancy
Calle Las Orquídeas 675 esq. Andrés Reyes - Piso
5, Oficina 501, San Isidro 15046, Peru
Page Personnel Servicios Temporales Peru
S.R.L
Peru
Recruitment Consultancy
Calle Las Orquídeas 675 esq. Andrés Reyes - Piso
5, Oficina 501, San Isidro 15046, Peru
Michael Page International Recruitment
(Philippines) Inc.
Philippines
Recruitment Consultancy
15th Floor, Citibank Center Building, 8741 Paseo
de Roxas, Bel-Air, City of Makati, NCR, Fourth
District, Philippines
Page Group Corporate Services (Philippines)
Inc.
Philippines
Support services
24th Floor, Philam Life Tower, 8767 Paseo De Roxas
Avenue, Bel-Air, Makati City 1226, Philippines
Michael Page International (Poland) Sp.z.o.o Poland
Recruitment Consultancy
Zlota 59, 00-120 Warsaw, Poland
Michael Page International Portugal -
Empressa de Trabalho Temporario e Servicos
de Consultadoria Lda
Portugal
Recruitment Consultancy
Av. Liberdade nº 180 A, 3º andar, Lisboa, 1250-
146, Portugal
MICPAGE Services Lda
Portugal
Recruitmeht Consultancy
Av. Liberdade nº 180 A, 3º andar, Lisboa, 1250-
146, Portugal
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 149149
Name of undertaking
Country of
incorporation
Principal
activity
Registered office
Michael Page International (UAE) Limited
– QFC Branch
UAE
Recruitment Consultancy
Qatar Financial Centre, Office 2, Ground Floor, Tornado Tower, West
Bay, PO Box 23153, Doha, Qatar
Michael Page International Pte Limited* Singapore
Recruitment Consultancy
One Raffles Place, #09-61 Office Tower Two, Singapore 048616
Page Personnel Recruitment Pte Ltd
Singapore
Recruitment Consultancy
One Raffles Place, #09-61 Office Tower Two, Singapore 048616
Michael Page International (SA) (Pty)
Limited
South Africa
Recruitment Consultancy
2 Maude Street, The Forum, 5th Floor, Sandton City, Johannesburg,
2196, South Africa
Michael Page Holding (España) SL
Spain
Holding company
Paseo De La Castellana 130, 8º Planta, Madrid, 28046, Spain
PageGroup Technology Services SL
Spain
IT consultancy services
Paseo De La Castellana 130, 8º Planta, Madrid, 28046, Spain
Page Group Europe SL
Spain
Support Services
Plaza Europa 21-23 P. 5, 08908 L’Hospitalet de Llobregat, 08908,
Spain
Page Group Spain Recursos Humanos
ETT SA
Spain
Recruitment Consultancy
Paseo De La Castellana 130, 8º Planta, Madrid, 28046, Spain
Michael Page International (Sweden) AB Sweden
Recruitment Consultancy Mäster Samuelsgatan 42, Stockholm 111 57, Sweden
Michael Page International
Switzerland SA
Switzerland
Recruitment Consultancy
12, Quai de la Poste, Geneva, 1204, Switzerland
Taiwan Michael Page International
Co Ltd
Taiwan
Recruitment Consultancy
8F-1 Shin Kong Xin Yi Financial Building,
36-1 Songren Road Xin-Yi District, Taipei City, Taiwan 110
Michael Page Limited
Thailand
Holding company
Michael Page International Recruitment
(Thailand) Limited
Thailand
Recruitment Consultancy
689 Bhiraji Tower at EmQuartier, 41st Floor, Unit 4108-4109,
Sukhumvit Road, North Klongtong, Vadhana, Bangkok, 10110,
Thailand
689 Bhiraji Tower at EmQuartier, 41st Floor, Unit 4108-4109,
Sukhumvit Road, North Klongtong, Vadhana, Bangkok, 10110,
Thailand
Michael Page International Nem Istihdam
Danışmanlığı Limited Şirketi
Turkey
Recruitment Consultancy
Büyükdere Cad. Kanyon Ofis Binası No: 185 K: 21 Levent, Istanbul,
34394, Turkey
MPI Yönetim Servisleri ve Dan. Ltd. Şti.
Turkey
Recruitment Consultancy
Büyükdere Cad. Kanyon Ofis Binası No: 185 K: 21 Levent, Istanbul,
34394, Turkey
Michael Page International (Vietnam)
Co. Limited
Vietnam
Recruitment Consultancy
Level 9, Saigon Centre, Tower 2, 67 Le Loi Street, Ben Nhge Ward,
District 1, Ho Chi Minh City, Vietnam
Michael Page International
(UAE) Limited
United Arab
Emirates
Recruitment Consultancy
202 & 204, Level 2, Currency House - Building 1, Dubai International
Financial Centre, Dubai, 506702, United Arab Emirates
Michael Page International Inc.*
United States
Recruitment Consultancy
622 Third Avenue, 29th Floor, New York, NY10017, USA
Page Outsourcing Inc.
United States
Recruitment Consultancy
251 Little Falls Drive, Wilmington, New Castle County, Delaware
19801, USA
*The equity of these subsidiary undertakings is held directly by PageGroup plc. All companies have been included in the consolidation
and operate principally in their country of incorporation.
The percentage of the issued share capital held is equivalent to the percentage of voting rights held. The Group holds 100% of all
classes of issued share capital. The share capital of all the subsidiary undertakings comprise Ordinary shares.
The following subsidiaries are exempt from the requirements of the Companies Act 2006 relating to the audit of accounts under
section 479A of the Act:
• Michael Page International Southern Europe Limited
• Michael Page Partnership Limited
• Michael Page International Holdings Limited
• Michael Page Employment Services Limited
•
LPM (Professional Recruitment) Limited
Annual Report and Accounts 2021 149
150
14. TRADE AND OTHER RECEIVABLES
Current
Trade receivables
Less allowance for expected credit losses and revenue reversals
Net trade receivables
Amounts due from Group companies
Other receivables
Accrued Income (net of revenue reversals)
Prepayments
Non-current
Other receivables
Group
2021
£’000
2020
£’000
Company
2021
£’000
2020
£’000
265,727
(11,086)
254,641
–
7,018
81,186
12,952
197,195
(11,061)
186,134
–
–
–
–
–
–
–
970,375
808,610
4,393
51,282
10,667
–
–
–
–
–
–
355,797
252,476
970,375
808,610
12,849
13,169
–
–
The fair values of trade and other receivables are not materially different to those disclosed above.
The Group’s exposure to credit and currency risks and impairment losses related to trade and other receivables is disclosed in Note 22.
All amounts due from Group undertakings are unsecured, interest-free and repayable on demand.
15. TRADE AND OTHER PAYABLES
Current
Trade payables
Amounts owed to Group companies
Other tax and social security
Other payables
Accruals
Non-current
Accruals
Other tax and social security
Group
2021
£’000
Company
2020
£’000
2021
£’000
2020
£’000
5,908
–
46,946
34,698
142,830
230,382
16,310
2,022
18,332
3,993
–
–
–
1,221,283
1,026,516
44,890
35,664
90,790
–
–
140
–
–
140
175,337
1,221,423
1,026,656
11,836
647
12,483
–
–
–
–
–
–
The fair values of trade and other payables are not materially different to those disclosed above.
All amounts due to Group undertakings are unsecured, interest-free and repayable on demand. The Group’s exposure to currency
and liquidity risk related to trade and other payables is disclosed in Note 22.
16. PROVISION
2021
Opening
Foreign exchange
Provided
Utilised
Released
Closing
2020
Opening
Foreign exchange
Provided
Utilised
Released
Closing
Current
Non-current
Total provisions
Dilapidations
NI on Share Schemes
6,355
(162)
1,051
(18)
(259)
6,967
1,362
-
2,253
(1,272)
-
2,343
Dilapidations
NI on Share Schemes
5,164
209
1,468
(289)
(197)
6,355
2,002
-
114
(754)
-
1,362
Other
968
(24)
2,005
(423)
(1,131)
1,395
Other
243
429
776
(213)
(267)
968
Total
8,685
(186)
5,309
(1,713)
(1,390)
10,705
Total
7,409
638
2,358
(1,256)
(464)
8,685
2021 (£’000)
2020 (£’000)
6,755
3,950
10,705
5,425
3,260
8,685
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 151151
Dilapidation
A provision has been recognised for dilapidation costs associated with our office portfolio. The Group is committed to make good on the
property sites on lease termination.
Social security contributions on share options
The provision for social security contributions on share options is calculated based on the number of options outstanding at the reporting
date that are expected to be exercised. The provision is based on market price of the shares at the reporting date which is the best
estimate of the market price at the date of exercise. It is expected that the costs will be incurred during the exercise period of 1 January
2022 to 31 December 2023.
17. BANK OVERDRAFTS
No bank overdrafts were utilised in respect of the year ended 31 December 2021 (2020: £Nil).
At 31 December 2021, the Group had available £20m (2020: £20m) of undrawn uncommitted overdraft facility with HSBC, £1m elsewhere
in the Group and £30m of committed RCF facility with BBVA. There is also £7.27m of undrawn borrowing facilities under the Invoice
Discounting arrangement with HSBC. Under the terms of the Invoice Discount Facility we are able to borrow up to £50m depending on
the level of UK trade receivables held at any one time. Based on the carrying amount of trade receivables at the year-end we were able to
borrow £7.27m of the £50m. No actual amount was drawn down on the facility at the year end. The Group utilised the facilities during the
year on an ad-hoc basis.
All other bank overdrafts and facilities are repayable on demand. The Group’s exposure to interest rate, foreign currency and liquidity risk for
financial assets and liabilities is disclosed in Note 22.
18. DEFERRED TAX
The following are the major deferred tax (assets)/liabilities recognised by the Group, and the movements thereon, during the current and
prior reporting periods.
At 1 January 2021
Recognised in equity for the year
Transfers
Recognised in profit or loss for the year
Exchange differences
At 31 December 2021
At 1 January 2020
Recognised in equity for the year
Recognised in profit or loss for the year
Exchange differences
At 31 December 2020
Share-based
payments
£’000
Tax losses
£’000
Provisions
£’000
Related party
transactions
£’000
490
1,241
-
346
-
2,077
1,150
67
(728)
1
490
2,188
-
268
(1,132)
(71)
1,253
1,940
–
495
(247)
2,188
4,702
-
485
(511)
(218)
4,458
5,345
–
(664)
21
4,702
2,746
-
514
4,193
67
7,520
4,730
–
(2,024)
40
2,746
Other
£’000
5,973
-
(1,267)
(321)
(388)
3,997
3,712
–
2,864
(603)
5,973
Total
£’000
16,099
1,241
-
2,575
(610)
19,305
16,877
67
(57)
(788)
16,099
Certain deferred tax assets and liabilities have been offset in accordance with the Group’s accounting policy. The following is the analysis of
the deferred tax balances (after offset) for balance sheet purposes:
Deferred tax assets
Deferred tax liabilities
2021
£’000
19,659
(354)
19,305
2020
£’000
17,688
(1,589)
16,099
The Group’s overseas subsidiaries have net unremitted earnings of £177.3m (2020: £149.7m), resulting in temporary differences of £33.7m
(2020: £24.2m). No deferred tax has been provided in respect of these differences since the timing of the reversals can be controlled and it
is probable that the temporary differences will not reverse in the foreseeable future. The timing differences shown under “Other” of £4.0m
(2020: £6m) predominantly includes such differences in relation to fixed assets £1.7m (2020: £0.8m), differences between the Group GAAP,
IFRS, and the local GAAP of each country in which PageGroup operates and differences between recognition of income and expense for
accounting and tax purposes and other items of £1.9m (2020: £5.0m) and IFRS 16 of £0.4m (2020: £0.2m). The realisation of the deferred
tax asset in respect of losses is dependent upon generating future taxable profits in the territories in which the deferred tax assets have
arisen. At 31 December 2021, £35m (2020: £27.4m) of deductible temporary differences, unused tax losses and tax credits have not been
recognised due to uncertainty over the taxable profits available to support the realisation of these attributes. The tax effected balances are
£10.5m (2020: £8.1m). The Group has unrecognised tax losses which expire of £4.3m of which £3.2m will expire at various dates between
2024 and 2026 and £1.1m will expire by 2031.
Annual Report and Accounts 2021 151
152
The net deferred tax asset of £19.3m (2020: £16.1m) includes £2.6m of deferred tax assets in relation to entities that have
incurred an accounting loss in either 2021 and 2020. In line with the most recent budgets which forecast profits for these entities,
management expects these losses to be substantially recovered in two to three years.
19. CALLED-UP SHARE CAPITAL
Allotted, called-up and fully paid Ordinary shares of 1p each
At 1 January
Shares issued
At 31 December
Shares issued in the year related to the Executive Share Option Scheme.
Share option plans
2021
2020
£’000
Number of
shares
£’000
Number of
shares
3,286
328,618,774
3,286
328,603,774
–
–
–
15,000
3,286
328,618,774
3,286
328,618,774
The Group has share option awards currently outstanding under a Share Option Scheme (SOS). These plans are described below.
At 31 December 2021 the following options had been granted and remained outstanding in respect of the Company’s Ordinary
shares of 1p under the Michael Page Share Option Scheme. The Group has no legal or constructive obligation to repurchase or
settle the options in cash.
Year of grant
Balance at
1 January
2021
2011 (Note 1)
1,430,790
2012 (Note 1)*
2013 (Note 1)*
2014 (Note 1)*
2015 (Note 1)*
501,853
545,649
888,333
905,000
2016 (Note 1)*
627,915
Granted
in year
Exercised
in year
Lapsed
in year
No. of
options
outstand-
ing at 31
December
2021
Base EPS/
OP range†
Exercise price
per share
Exercise period
–
–
–
–
–
–
(22,264)
(1,408,526)
–
OP range
491.0p-492.9p March 2014 – March 2021
(415,271)
(15,000)
71,582
OP range
477.0p March 2015 – March 2022
(338,854)
(10,000)
196,795
OP range
442.0p March 2016 – March 2023
(475,000)
(10,000)
403,333
OP range
484.0p March 2017 – March 2024
(580,000)
(30,000)
295,000
OP range
526.0p-534.0p March 2018 – March 2025
(482,915)
–
145,000
OP range
406.0p-427.0p March 2019 – March 2026
2017 (Note 1)*
1,413,205
– (1,205,000)
(20,000)
188,205
OP range
435.44p March 2020 – March 2027
2018 (Note 1)*
1,519,865
2019 (Note 1)
1,760,000
2020 (Note 1)
1,840,000
–
–
–
2021 (Note 1)
–
1,958,748
–
–
–
–
(150,000)
1,369,865
OP range
529.0p March 2021 – March 2028
(122,222)
(128,889)
1,637,778
OP range
458.2-473.80p March 2022 – March 2029
1,711,111
OP range
332.0-387.47p March 2023 – March 2030
(90,556)
1,868,192
OP range
480.1p March 2024 – March 2031
Total 2021
11,432,610
1,958,748
(3,519,304)
(1,985,193)
7,886,861
Weighted
average
exercise price
2021 (£)
4.55
4.80
4.60
4.81
4.52
Total 2020
10,309,789
1,850,000
(75,000)
(652,179)
11,432,610
Weighted
average
exercise price
2020 (£)
4.77
3.37
4.13
4.81
4.55
* These options have fully vested
† The Operating Profit ranges for each award are fully disclosed in Note 2 of this Note. 3,783,469 options were exercisable at the end of 2021 at a weighted average exercise
price of £4.88 (2020: £4.65). The weighted average share price at the date of exercise was £4.60.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 153153
Note 1
Share Option Scheme
Executive Directors of the Company are not eligible to participate in this plan. Any exercises of awards made under this plan are
settled by shares held in the Employee Benefit Trust.
This share option scheme was created in 2009 to provide an effective plan under which to grant awards from 2009 onwards. It was
the Board’s view that grants made under the existing ESOS, which would have required an increase over the 2008 base earnings
per share of at least 3% per annum above the growth in the UK Retail Price Index by 2011, would not be achievable due to the
impact of the global downturn on the Group’s EPS and thus would not provide the required retention incentive. Further grants
under the SOS have been made in each year from 2011. The performance conditions for these grants are also directly linked to the
Group’s Operating Profit.
For grants between 2012 and 2015, if Operating Profit is in excess of £50m, a proportion of the award equivalent to the amount
of Operating Profit achieved will vest up to a maximum of 100% if the Operating Profit is £100m or more. As Operating Profit of
£118.3m was achieved in 2017, the performance criteria have been fully achieved and these awards have fully vested.
For the 2016 grant, if Operating Profit is in excess of £75m, 2% of the award will vest for every additional £1m of Operating Profit
achieved, up to a maximum of 100% at Operating Profit of £125m or more. As Operating Profit of £142.5m was achieved in 2018,
the performance criteria have been fully achieved and these awards have fully vested.
For the 2017 grant, if Operating Profit is in excess of £50m, 25% of the award will vest, 1% of the award will vest for every additional
£1m of Operating Profit achieved, up to a maximum of 100% at Operating Profit of £125m or more. As Operating Profit of £146.7m
was achieved in 2019, the performance criteria have been fully achieved and these awards have fully vested.
For the 2018 grant, if Operating Profit is in excess of £75m, 25% of the award will vest. 1% of the award will vest for every additional
£1m of Operating Profit achieved, up to a maximum of 100% at Operating Profit of £150m or more. As Operating Profit of £168.5m
was achieved in 2021, the performance criteria have been fully achieved and these awards have fully vested.
For the 2019 grant, if Operating Profit is in excess of £100m, 1% of the award will vest for every additional £1m of Operating Profit
achieved, up to a maximum of 100% at Operating Profit of £200m or more. As Operating Profit of £168.5m was achieved in 2021,
68% of the performance criteria have been achieved and these awards have partially vested.
For the 2020 grant, if Operating Profit is in excess of £100m, 1% of the award will vest for every additional £1m of Operating Profit
achieved, up to a maximum of 100% at Operating Profit of £200m or more.
For the 2021 grant, if Operating Profit is in excess of £75m, 25% of the award will vest. 1% of the award will vest for every additional
£1m of Operating Profit achieved, up to a maximum of 100% at Operating Profit of £150m or more.
Other share-based payment plans
The Company also operates a Management Incentive Plan for the Executive Directors and senior employees and a Long-Term
Incentive Plan for the Chief Executive Officer, Chief Financial Officer and other senior employees. Details of these plans are disclosed
in the Directors’ Remuneration Report and are settled by the physical delivery of shares, currently satisfied by shares held in the
Employee Benefit Trust, to the extent that service and performance conditions are met. Movements on these plans are shown
below:
As at 1 January 2021
Granted
Lapsed
Exercised
As at 31 December 2021
Share option valuation and measurement
LTIP/ESIP
863,520
121,786
–
(410,814)
574,492
MIP
2,240,047
803,886
(475,064)
(380,938)
2,187,931
In 2021, options were granted on 15 March with the estimated fair value of the options granted on that day of £0.84. In 2020,
options were granted on 13 March with the estimated fair value of the options granted on that day of £0.91 to £1.07. Share options
are granted under service and non-market performance conditions. These conditions are not taken into account in the fair value
measurement at grant date. There are no market conditions associated with the share option grants. The options outstanding at 31
December 2021 have an exercise price in the range of 332.0p to 534.0p and a weighted average contractual life of 5.4 years. The
fair values of options and other share awards granted during the year were calculated using the Black-Scholes option pricing model.
The inputs into the model were as follows:
Share price (£)
Average exercise price (£)
Weighted average fair value (£)
Expected volatility
Expected life
Risk free rate
Expected dividend yield
Share Option Plans
Management Incentive Plan
2021
4.80
4.80
0.84
34.87%
5 years
0.47%
5.15%
2020
3.32
3.32
0.91
35.84%
5 years
0.26%
1.30%
2021
4.80
Nil
4.11
34.87%
3 years
0.47%
5.15%
2020
3.49
Nil
3.36
35.84%
3 years
0.26%
1.30%
Annual Report and Accounts 2021 153
154
Expected volatility was determined by reference to historical volatility of the Company’s share price in the last 12 months. The
expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability,
exercise restrictions and behavioural considerations. Expectations of early exercise are incorporated into the Black-Scholes option
pricing model.
The Group recognised total expenses of £7.8m, including social security, (2020: £4.3m) related to share-based payment
transactions during the year.
20. RESERVES
Share premium
The share premium account has been established to represent the excess of proceeds over the nominal value for all share issues,
including the excess of the exercise share price over the nominal value of the shares on the exercise of share options.
Capital redemption reserve
The capital redemption reserve relates to the cancellation of the Company’s own shares.
Reserve for shares held in the Employee Benefit Trust
At 31 December 2021, the reserve for shares held in the employee benefit trust consisted of 10,563,022 Ordinary shares (2020:
12,795,658 Ordinary shares) held for the purpose of satisfying awards made under the Management Incentive Share Plan, the ESIP
and the SOS, representing 3.2% of the called-up share capital with a market value of £66.9m (2020: £57.2m).
There are 9,084,233 (2020: 11,249,646) of these shares held in the trust on which dividends are waived.
Currency translation reserve
Since first-time adoption of the International Financial Reporting Standards, the currency translation reserve comprises all foreign
exchange differences arising from the translation of the financial statements of foreign operations that are integral to the operations
of the Company.
21. CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term deposits
Cash and cash equivalents
Cash and cash equivalents in the statement of cash flows
Net funds
Group
2021
£’000
2020
£’000
153,983
108,849
–
153,983
153,983
153,983
57,138
165,987
165,987
165,987
Company
2021
£’000
2020
£’000
–
–
–
–
–
–
–
–
–
–
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.
22. FINANCIAL RISK MANAGEMENT
The Group has exposure to the following risks from its use of financial instruments:
(i) credit risk
(ii) liquidity risk
(iii) market risk
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and
processes for measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included
throughout these consolidated financial statements.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and
procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles
and obligations.
The Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures
and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Audit Committee
is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management
controls and procedures, the results of which are reported to the Audit Committee.
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 155155
(i) Credit risk
Credit risk is the risk of financial loss to the Group if a client or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Group’s receivables from clients. Management has a credit policy in place and the
exposure to credit risk is monitored on an ongoing basis.
At the balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is
represented by the carrying amount of each financial asset in the balance sheet.
Trade and other receivables
Total trade receivables (net of allowances) held by the Group at 31 December 2021 amounted to £254.6m (2020: £186.1m).
An initial credit period is made available on invoices. No interest is charged on trade receivables from the date of the invoice during
this credit period. An impairment analysis is performed at each reporting date using a provision matrix to measure the expected
credit losses. The Group has established a provision matrix that is based on its historical credit loss experience adjusted for
forward-looking factors specific to the debtors and the economic environment. If there has been a significant increase in credit
risk in a customer or group of customers the loss is recognised immediately based on the future credit losses over the life of the
contract.
Included in the Group’s trade receivables balance are debtors with a carrying amount of £96.0m (2020: £66.7m) that are past due
at the reporting date for which the Group has not provided as the amounts are still considered recoverable. The Group does not
hold any collateral over these balances. The days’ sales of these receivables at the year end is 41 days in excess of the initial credit
period (2020: 38 days).
In the table below, the provision includes expected credit losses and provision for revenue reversals.
The ageing of trade receivables at the reporting date was:
Not past due
Past due 0-30 days
Past due 31-150 days
More than 150 days
Gross trade
receivables
2021
£’000
Provision
2021
£’000
Net trade
receivables
2021
£’000
Gross trade
receivables
2020
£’000
159,682
(1,015)
158,667
120,214
57,473
36,641
11,931
(366)
(233)
(9,472)
57,107
36,408
2,459
40,663
22,955
13,363
Provision
2020
£’000
(764)
(259)
(146)
(9,892)
Net trade
receivables
2020
£’000
119,450
40,404
22,809
3,471
265,727
(11,086)
254,641
197,195
(11,061)
186,134
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each client. The demographics of
the Group’s client base, including the country in which clients operate, also has an influence on credit risk. The geographic
diversification of the Group’s revenue also reduces the concentration of credit risk.
The majority of the Group’s clients have been transacting with the Group for several years, with losses rarely occurring. In monitoring
client credit risk, clients are grouped according to their credit characteristics, including geographic location, industry, ageing profile,
maturity and existence of previous financial difficulties.
Movement in the allowance for expected credit losses and revenue reversals:
Balance at beginning of the year
Expected credit losses and provision for revenue reversals recognised on receivables
Amounts written off as uncollectable
Amounts recovered/reversed during the year
Balance at end of the year
2021
£’000
11,061
17,920
(2,033)
(15,862)
11,086
2020
£’000
10,081
27,773
(285)
(26,508)
11,061
The allowance for expected credit losses represents a provision for debts which the Group estimate may be irrecoverable, including
£6.3m (2020: £6.3m) of debts in litigation.
The impairment recognised represents the difference between the carrying amount of these trade receivables and the present value
of the expected liquidation proceeds. The Group does not hold any collateral over these balances.
Annual Report and Accounts 2021 155
156
Exposure to credit risk
The maximum exposure to credit risk for net trade receivables at the reporting date by geographic region was:
EMEA
United Kingdom
Asia Pacific
Americas
Carrying amount
2021
£’000
2020
£’000
153,919
118,327
36,745
31,005
32,972
21,805
23,159
22,843
254,641
186,134
The maximum exposure to credit risk for net accrued income at the reporting date by geographic region was:
EMEA
United Kingdom
Asia Pacific
Americas
Carrying amount
2021
£’000
27,047
17,254
22,683
14,202
81,186
2020
£’000
19,591
7,173
14,746
9,772
51,282
The entire accrued income balance is not past due. The fair values of trade and other receivables are not materially different to
those disclosed above and in note 14. There is no material effect on pre-tax profit if the instruments are accounted for at fair value
or amortised cost.
(ii) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board, which has built an appropriate liquidity risk management
framework that aims to ensure that the Group has sufficient cash or credit facilities at all times to meet all current and forecast
liabilities as they fall due. It is the Directors’ intention to continue to finance the activities and development of the Group from
retained earnings.
Cash surpluses were invested in short-term deposits, with any working capital requirements being provided from Group cash
resources, Group facilities, or by local overdraft facilities. The Group also operates a multi-currency notional cash pool to facilitate
interest and balance compensation of cash and bank overdrafts.
The following are the contractual maturities of financial liabilities:
2021
Lease liabilities*
Trade payables
Less than
1 month
£’000
2,639
5,829
1-3 months
£’000
3-12 months
£’000
More than
12 months
£’000
5,355
63
22,131
72,215
16
Accruals and other payables
123,431
21,957
52,000
2020
Lease liabilities*
Trade payables
Less than
1 month
£’000
2,298
3,738
1-3 months
£’000
3-12 months
£’000
5,990
111
24,423
70,758
144
Accruals and other payables
87,597
15,591
31,046
*The above lease liabilities are the contractual undiscounted cashflows before discounting at the incremental borrowing rate.
–
5,340
More than
12 months
£’000
–
905
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 157157
Capital is equity attributable to the equity holders of the parent. The primary objective of the Group’s capital management is to
ensure that it maintains a strong credit rating and healthy capital ratios to support its business and maximise shareholder value. The
Group manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust
the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders through share
repurchases with subsequent cancellation, or issue new shares. No changes were made in the objectives, policies or processes for
managing capital during the years ended 31 December 2021 and 31 December 2020.
(iii) Market risk and sensitivity analysis
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates,
but these risks are not deemed to be material. However, a sensitivity analysis showing hypothetical fluctuations in Pounds Sterling
against the Group’s main exposure currencies is shown on the next page. There has been no material change in the Group’s
exposure to market risks or the manner in which it manages and measures the risk.
Interest rate risk management
Borrowings are arranged at floating rates, thus exposing the Group to cash flow interest rate risk. The Group does not consider this
risk as significant. The benchmark rates for determining floating rate liabilities are based on relevant national LIBOR equivalents.
Currency rate risk
The Group publishes its results in Pounds Sterling and conducts its business in many foreign currencies. As a result, the Group is
subject to foreign currency exchange risk due to exchange rate movements. The Group is exposed to foreign currency exchange
risk as a result of transactions in currencies other than the functional currencies of some of its subsidiaries and the translation of the
results and underlying net assets of foreign subsidiaries.
The main functional currencies of the Group are Sterling, Euro, Chinese Renminbi, Swiss Franc, Singapore Dollar, Hong Kong
Dollar, Australian Dollar and US 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 policy is not to hedge translation
exposure.
In certain cases, where the Company gives or receives short-term loans to and from other Group companies with different reporting
currencies, it may use foreign exchange rate derivatives to manage the currency exposure that arises on these loans. It is the
Group’s policy not to seek to designate these derivatives as hedges.
All derivative financial instruments are classified as derivatives at fair value through the income statement. The Group does not use
derivatives for speculative purposes. All transactions in derivative financial instruments are undertaken to manage the risks arising
from underlying business activities.
Information on the fair value of derivative financial instruments held at the balance sheet date is shown in the table below.
Fair values are not adjusted for credit risk, as required by IFRS 13, because credit impact is not material given the low fair value
levels. All derivative instruments are classified as level 2 instruments.
Derivative financial instruments
Derivative assets
Derivative liabilities
Net derivative (liabilities)
Sensitivity analysis – currency risk
Derivatives at fair value
2021
£m
1.2
(1.8)
(0.6)
2020
£m
0.3
(2.0)
(1.7)
A 10% strengthening of Sterling against the following currencies at 31 December 2021 would have increased/(decreased) equity
and profit or loss by the amounts shown over the page. This is reflective of the exchange rates movements experienced by the
Group over the last 3 years. This analysis is applied currency by currency in isolation, i.e. ignoring the impact of currency correlation,
and assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for
2020. The amounts generated from the sensitivity analysis are forward-looking estimates of market risk assuming certain adverse
market conditions occur. Actual results in the future may differ materially from those projected, due to developments in the global
financial markets which may cause fluctuations in interest and exchange rates to vary from the hypothetical amounts disclosed in
the table over the page, which therefore should not be considered a projection of likely future events and losses.
Annual Report and Accounts 2021 157
158
Euro
Australian Dollar
Swiss Franc
Chinese Renminbi
Hong Kong Dollar
Singapore Dollar
United States Dollar
Other
Euro
Australian Dollar
Swiss Franc
Chinese Renminbi
Hong Kong Dollar
Singapore Dollar
United States Dollar
Other
2021 equity
£’000
2021 PBT
£’000
(9,902)
(1,448)
(460)
(1,128)
(862)
(1,562)
(594)
(2,529)
(136)
(254)
(113)
(326)
(17)
(67)
93
(711)
2020 equity
£’000
2020 PBT
£’000
(12,877)
(1,238)
(350)
(658)
(851)
(1,488)
(1,065)
(1,663)
(470)
199
67
55
27
(23)
(143)
535
A 10% weakening of Sterling against the above currencies at 31 December would have had the equal but opposite effect on the
above currencies to the amounts shown above, on the basis that all other variables remain constant.
23. COMMITMENTS AND CONTINGENT LIABILITIES
Capital Commitments
The Group had nil contractual capital commitments as at 31 December 2021 relating to property, plant and equipment (2020:nil).
The Group had contractual capital commitments of nil as at 31 December 2021 relating to computer software (2020:nil).
Guarantees
The Company has provided guarantees to other Group undertakings amounting to £3.8m (2020: £4.0m) in the ordinary course of
business. It is not anticipated that any material liabilities will arise from the contingent liabilities.
VAT Group registration
As a result of Group registration for VAT purposes, the Company is contingently liable for VAT liabilities arising in other companies
within the VAT group which at 31 December 2021 amounted to £6.3m (2020: £6.8m).
24. EVENTS AFTER THE BALANCE SHEET DATE
There were 49k shares options exercised from 31 December 2021 to 3 March 2022.
25. RELATED PARTY TRANSACTIONS
Identity of related parties
The Company has a related party relationship with its Directors and members of the Executive Committee, and subsidiaries
(Note 13).
Transactions with key management personnel
Key management personnel are deemed to be the Directors and members of the Executive Committee as detailed in the
biographies on pages 72 to 78. The remuneration of Directors and members of the Executive Committee is determined by the
Remuneration Committee having regard to the performance of individuals and market trends. The transactions for the year were:
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 159159
Related party transactions
Wages and salaries
Social security costs
Short-term benefits
Pension costs – defined contribution plans
Share-based payments
Company
2021
£’000
8,578
884
613
288
3,926
14,289
2020
£’000
3,270
232
432
231
2,464
6,629
Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on
consolidation. Details of transactions between the parent company and subsidiary undertakings are shown below.
Transactions
67,178
144,312
970,375
808,610
1,221,283
1,026,516
Dividends received
Amounts owed
by related parties
Amounts owed
to related parties
2021
£’000
2020
£’000
2021
£’000
2020
£’000
2021
£’000
2020
£’000
FIVE-YEAR SUMMARY
Revenue
Gross profit
Operating profit
Profit before tax
Profit attributable to equity holders
Conversion†
Basic earnings per share (pence)
† Operating profit before exceptional items as a percentage of gross profit.
2017
£’000
2018
£’000
2019
£’000
2020
£’000
2021
£’000
1,371,534
1,549,941
1,653,948
1,304,791 1,643,740
711,568
118,322
118,162
83,080
16.6%
26.5
814,902
142,463
142,275
103,703
17.5%
32.5
855,450
146,669
144,245
103,445
17.1%
32.2
610,249
877,720
17,028
168,510
15,544
166,645
(5,742)
118,356
2.8%
(1.8)
19.2%
37.2
Annual Report and Accounts 2021 159
160
Shareholder Information and Advisers
Annual General Meeting
To be held on 31 May 2022 at 9.30am at 200 Dashwood Lang Road, Bourne Business Park, Addlestone, Surrey KT15 2NX.
Final dividend for the year ended 31 December 2021
To be paid (if approved) on 17 June 2022 to shareholders on the register of members on 20 May 2022.
General Counsel & Company Secretary
Kaye Maguire
Company number
3310225
Registered office, domicile and legal form
The Company is a limited liability company incorporated and domiciled within the United Kingdom.
The address of its registered office is:
200 Dashwood Lang Road,
Bourne Business Park,
Addlestone,
Surrey, KT15 2NX
Auditor
Ernst & Young LLP
1 More London Place
London SE1 2AF
Solicitors
Herbert Smith Freehills LLP
Exchange House
Primrose Street
London EC2A 2EG
Bankers
HSBC Bank plc
60 Queen Victoria Street
London EC4N 4TR
Joint corporate brokers
Citigroup
33 Canada Square
Canary Wharf
London E14 5LB
HSBC Bank plc
8 Canada Square
Canary Wharf
London E14 5HQ
Registrars
Link Group
10th Floor
Central Square
29 Wellington Street
Leeds LS1 4DL
Financial PR
FTI Consultancy
200 Aldersgate
Aldersgate Street
London EC1A 4HD
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 161
161
Annual Report and Accounts 2021
Notes
162
Annual Report and Accounts 2021Financial StatementsStrategic ReportCorporate GovernanceAdditional Information 163
163
Annual Report and Accounts 2021