PageGroup Regulatory News (PAGE)

9 August 2021

PageGroup plc

Half Year Results for the Period Ended 30 June 2021

Strong Financial and Operational Performance

PageGroup plc ("PageGroup"), the specialist professional recruitment company, announces its unaudited half year results for the period ended 30 June 2021.

Note: Given the magnitude of the impact of COVID-19 in 2020, we are providing comparisons in constant currencies against 2019, to ensure the most appropriate representation of current trading. Comparisons to 2020 are also given in the tables.

H1 Summary

· Group operating profit of £64.3m (H1 2020: £0.4m; H1 2019: £75.6m)

· Conversion rate** increased to 15.9% (H1 2020: 0.1%; H1 2019: 17.4%)

· Gross profit per fee earner up 10.7% on H1 2019 to £75.8k (H1 2020: £53.2k, H1 2019: £70.7k)

· Total headcount increased by 381 (5.7%) to 7,075 at the end of June, but remains down c. 8% on pre COVID-19 levels at the end of 2019

· Strong Balance Sheet, with net cash of £163.8m (H1 2020: £161.7m, H1 2019: £81.7m)

· Returning to dividend policy, interim dividend of 4.70 pence per share and special dividend of 26.71 pence per share, together totalling £100m

· Outlook upgraded on 7 July 2021, full year operating profit expected to be within the range of £125m - £135m

* in constant currencies

** operating profit as a percentage of gross profit

Commenting, Steve Ingham, Chief Executive Officer, said:

"Throughout the pandemic we have continued to focus on the protection and wellbeing of our employees, candidates and clients, whilst progressing strategic investments in our platform to take advantage of the recovery. The tough and challenging year in 2020 has strengthened our culture, diversity and the values in the business which are now re-affirmed at the forefront of our operations. I am immensely proud of the spirit, resilience, and commitment of all our people. This, I believe, is reflected in our results.

"Gross profit for the first half was down just 3.7% on H1 2019, our record year, and we have delivered operating profit of £64.3m in H1 2021, at a conversion rate of 15.9%.

"We remain confident in our strategy of maintaining and investing in our platform. We continued to invest carefully in headcount, demonstrated by the c. 400 experienced hires we added in 2020, and around a further 400 in H1 2021, as well as rolling-out new technology and innovation. Our headcount is currently down c. 8% on the pre-pandemic level at the end of 2019. As a result of the more favourable trading conditions in H1, as well as this reduction in our fee earner headcount, our gross profit per fee earner is up 10.7% on H1 2019.

"Due to the uncertain trading conditions caused by COVID-19 last year, we chose to temporarily suspend our dividend policy and cancel our 2019 final dividend. Given the improvement in trading conditions in H1, as well as our strong liquidity position, the Board has decided to reinstate our dividend policy. As such, we are announcing today an interim dividend of 4.70 pence per share, an increase of 9.3% on the 2019 interim dividend. In addition, in line with our policy of returning surplus capital to shareholders, we are also pleased to announce a special dividend of 26.71 pence per share, totalling £85m. Taking both dividends together, this amounts to a cash return to shareholders of £100m, payable on 13 October.

"Looking ahead, there continues to be a high degree of global macro-economic uncertainty as COVID-19 remains a significant issue and restrictions continue in a number of the Group's markets. Additionally, at this stage of the recovery, it is not clear whether the improved performance is still the result of pent-up supply and demand, or a sustainable trend. However, as stated on 7 July 2021, the strength of our performance in H1, notably in June, and absent any unexpected events, we expect full year operating profit to be within the range of £125m - £135m.

"We are the clear leader in many of our markets, with a highly experienced senior management team, which, we believe, positions us well to take advantage of opportunities to grow and improve our business. We have maintained our focus on driving progress towards our long-term strategic goals."

INTERIM MANAGEMENT REPORT

GROUP RESULTS

The Group's revenue for the six months ended 30 June 2021 increased 17.0% to £766.4m (2020: £655.0m; 2019: £820.5m) and gross profit increased 34.4% to £404.2m (2020: £300.7m; 2019: £433.5m). In constant currencies, the Group's revenue increased 19.7% and gross profit increased 38.3%. In constant currencies vs. 2019, the Group's revenue decreased 4.2%, with gross profit down 3.7%. The Group's revenue mix between permanent and temporary placements was 41:59 (2020: 33:67; 2019: 41:59) and for gross profit was 77:23 (2020: 70:30; 2019: 76:24), as the recovery in 2021 has been driven by permanent recruitment.

Revenue from temporary placements comprises the salaries of those placed, together with the margin charged. Overall, pricing has remained relatively stable across all regions. Fee earner productivity increased by 10.7% vs H1 2019 and 46.6% vs H1 2020. This was due to gross profit being down only 3.7%, but with fee earner headcount having decreased from 6,035 in H1 2019 to 5,443 in H1 2021.

The Group's organic growth model and profit-based team bonus ensures costs remain tightly controlled. 79% of first half costs were employee related, including salaries, bonuses, share-based long-term incentives, and training and relocation costs.

In total, administrative expenses in the first half decreased 5.0% in reported rates compared to 2019 to £339.9m (2020: £300.3m; 2019: £357.9m), driven by the decrease in headcount. In constant currency compared to 2019, administrative expenses were down 1.8% and operating profit decreased 12.5% to £64.3m (2020: £0.4m; 2019: £75.6m). This was an increase of over 100% compared to 2020 in both reported rates and constant currency.

The Group's conversion rate, which represents the ratio of operating profit to gross profit, was 15.9% (2020: 0.1%; 2019: 17.4%) due to the combination of an increase in gross profit and the reduction in our headcount of c. 8% on pre COVID-19 levels, offset by tougher trading conditions at the start of the year.

FOREIGN EXCHANGE

Movements in foreign exchange reduced the Group's gross profit and operating profit by c. £12m and c. £2m respectively.

OTHER ITEMS

Interest received and interest paid was broadly consistent with H1 2020. The charge for taxation for the half year was an effective tax rate of 39.4% (H1 2020: -107.6%, H1 2019: 27.5%).

The effective tax rate for the first half is significantly lower than the prior year, as the global pandemic materially impacted trading in H1 2020. Last year, this resulted in changes in deferred tax asset recognition on losses and other timing differences due to uncertainty over the availability of future taxable income in certain territories. The CVAE tax in France, which is linked to revenue rather than profit, has also had a disproportionate impact on the rate in 2020.

Basic earnings per share and diluted earnings per share for the six months ended 30 June 2021 were 12.2p and 12.1p respectively (2020: basic and diluted loss per share -0.5p; 2019: basic and diluted earnings per share 16.8p).

CASH FLOW

The Group started the year with net cash of £166.0m. In H1, £56.7m was generated from operations due to improved trading conditions, offset by an increase in the permanent placements' debtor receivable. Tax paid was £21.8m and net capital expenditure was £10.7m. During the first half, £6.9m was received from exercises of share options (2020: £0.1m) and £10.4m was spent on the purchase of shares into the Employee Benefit Trust (2020: £1.6m, 2019: nil). As a result, the Group had net cash of £163.8m at 30 June 2021, broadly in line with the prior year of £161.7m.

CAPITAL ALLOCATION POLICY

It is the Directors' intention to continue to finance the activities and development of the Group from retained earnings and to maintain a strong balance sheet position.

The Group's first use of cash is to satisfy operational and investment requirements, as well as to hedge its liabilities under the Group's share plans. The level of cash required for this purpose will vary depending upon the revenue mix of geographies, permanent and temporary recruitment, and point in the economic cycle.

Our second use of cash is to make returns to shareholders by way of an ordinary dividend. Our policy is to grow the ordinary dividend over the course of the economic cycle in a way that we believe we can sustain the level of ordinary dividend payment during downturns, 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 and/or share buybacks.

Due to the uncertain trading conditions caused by COVID-19 last year, we chose to temporarily suspend our dividend policy and cancel our 2019 final dividend. Given the improvement in trading conditions in H1, as well as our strong liquidity position, the Board have decided to reinstate our dividend policy. As such, we are announcing today an interim dividend of 4.70 pence per share, an increase of 9.3% over the 2019 interim dividend. In addition, in line with our policy of returning surplus capital to shareholders, we are also pleased to announce a special dividend of 26.71 pence per share, totalling £85m. Taking both dividends together, this amounts to a cash return to shareholders of £100m, payable on 13 October to shareholders on the register as at 3 September.

GEOGRAPHICAL ANALYSIS (All growth rates given below are in constant currency vs. 2019 unless otherwise stated)

EUROPE, MIDDLE EAST AND AFRICA (EMEA)

EMEA is the Group's largest region, contributing 51% of Group first half gross profit. In constant currencies vs. 2019, revenue was down 3.9% and gross profit was down 3.7%. Against 2020, in reported rates, revenue in the region increased 15.9% to £408.9m (2020: £352.9m) and gross profit increased 31.7% to £203.5m (2020: £154.5m). In constant currencies, revenue increased 17.0% on the first half of 2020 and gross profit increased by 33.5%.

Trading conditions in EMEA started improving towards the end of March and this improvement continued into the second quarter. Michael Page grew 9% vs. 2019. However, our more temporary focused Page Personnel business, was down 19%. France, 14% of the Group and around a third of the region, was down 15%. Germany, the Group's third largest market, delivered a record first half and was up 19%. This was driven by a standout performance from our Technology focused Interim business, up 47%. Southern Europe grew 3%, with Italy flat and Spain up 4%. Benelux declined 11%, however Belgium delivered a record performance, up 3%. Middle East and Africa declined 10%.

Operating profit for H1 was £35.9m (2020: £10.6m; 2019: £45.6m) with a conversion rate of 17.6% (2020: 6.8%; 2019: 21.4%). Profitability improved significantly on 2020 due to the improvement in trading conditions. We remain below 2019 operating profit and conversion rate, primarily due to the slower recovery in France, our largest country in the region. Headcount across the region increased by 164 (5.5%) in the first half, to 3,143 at the end of June 2021 (2,979 at 31 December 2020).

ASIA PACIFIC

In Asia Pacific, representing 20% of Group first half gross profit, revenue declined 1.9% vs. 2019 in constant currency. However gross profit was up 3.5%, a record first half. Against 2020, revenue increased 22.7% in reported rates to £129.2m (2020: £105.3m) and gross profit increased 43.8% to £81.8m (2020: £56.9m). In constant currency against 2020, revenue increased 24.8% in the first half and gross profit increased by 48.6%.

In Mainland China, where nearly all of our people are back in the office, we delivered a record first half, up 23% and exited June strongly, up 46%. Hong Kong, where trading conditions remain challenging, was down 25%. Overall, Greater China grew 3% for the first half. South East Asia, one of our Large High Potential markets, delivered a record performance, up 21%. Singapore was down 1%, although exited June strongly, up 22%. The other five countries in the region grew 44%, collectively. Japan delivered a record first half, growing 10%, largely driven by a strong performance from our contracting business. India, despite being one of the worst affected countries by COVID-19, delivered a record performance up 39%. Overall for the first half, Australia was down 15%, although we saw an improvement in June, exiting down just 2%.

Operating profit increased to £15.3m (2020: -3.6m; 2019: £8.8m) and our conversion rate increased to 18.8% (2020: -6.3%; 2019: 10.8%). Asia Pacific has been our strongest performing region, which, combined with a large reduction in headcount, has driven a significant improvement in profitability compared to 2019. Headcount across the region increased by 153 in the first half (11.0%) to 1,538 at the end of June 2021 (1,385 at 31 December 2020).

THE AMERICAS

In the Americas, representing 15% of Group first half gross profit, despite being one of the worst COVID-19 affected regions, revenue increased by 18.6% and gross profit increased 1.6% vs. 2019 in constant currencies. Against 2020, revenue increased 30.4% in reported rates to £102.6m (2020: £78.7m), while gross profit increased 30.6% to £61.3m (2020: £46.9m). In constant currencies against 2020, revenue increased by 44.6% and gross profit increased by 44.2%.

North America was flat overall, with the US up 2%, a record first half. Whilst conditions remain challenging in our largest discipline, Property & Construction, we have seen strong growth in other areas, such as Technology. The US was up 19% in June.

For the first half, Latin America was up 5%, a record first half, with Brazil up 18%. Mexico, our largest country in the region, was down 10%, but exited June +3%. Elsewhere in Latin America, our other five countries in the region grew 11%, collectively.

Operating profit was £8.8m (2020: -£4.9m; 2019: £8.7m), with a conversion rate of 14.3% (2020: -10.5%; 2019: 12.5%). Trading conditions improved significantly in the first half throughout the region, which means the conversion rate is now higher than in 2019. Headcount in the Americas was up 30 (2.6%) in the period, to 1,185 at the end of June 2021 (1,155 at 31 December 2020).

UNITED KINGDOM

In the UK, representing 14% of Group first half gross profit, revenue decreased 20.1% vs. 2019 to £125.7m (2020: £118.1m; 2019: £157.4m) and gross profit declined 17.0% to £57.6m (2020: £42.4m; 2019: £69.4m).

Our Michael Page business was down 12%, whereas our more Temporary focused Page Personnel business was down 30%. We saw a sequential improvement throughout the first half as lockdowns eased, exiting June down just 2%, with our Michael Page business up 7% on June 2019.

Operating profit was £4.3m (2020: -£1.7m; 2019: £12.5m) and our conversion rate was 7.5% (2020: -3.9%; 2019: 18.0%). This was after the furlough repayment of £3.4m to HMRC and excluding this one-off item, our conversion rate was 13.3%. Headcount was up by 34 (2.9%) during the first half to 1,209 at the end of June 2021 (1,175 at 31 December 2019).

KEY PERFORMANCE INDICATORS ("KPIs")

We measure our progress against our strategic objectives using the following key performance indicators:

The source of data and calculation methods year-on-year are on a consistent basis. The movements in KPIs are in line with expectations. Disclosure for GHG emissions and People KPIs is provided annually.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the Group's strategy are subject to a number of risks.

The main risks that PageGroup believes could potentially impact the Group's operating and financial performance for the remainder of the financial year remain those as set out in the Annual Report and Accounts for the year ending 31 December 2020 on pages 41 to 48.

TREASURY MANAGEMENT, BANK FACILITIES AND CURRENCY RISK

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 and UK business utilise the notional cash pool and the Asia Pacific subsidiaries operate the interest enhancement facility. The structures facilitate interest compensation for cash whilst supporting working capital requirements.

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 2023, with a total drawable amount of £30m. Neither of these facilities were in use as at 30 June. These facilities are used on an ad hoc basis to fund any major Group GBP cash outflows.

In May 2019 PageGroup entered into a £30m revolving credit facility (RCF) with BBVA. To ensure the RCF remains compliant with regulations (specifically Libor transition), we have amended the original terms and at the same time took the opportunity to enhance other terms, providing further strength and resilience to the Group. The revised terms are:

· Incorporation of Libor transition clauses

· Executed the first of two right of extensions, meaning the RCF now expires in May 2023

· Linked the BBVA RCF to sustainable finance KPI's and

· Reduced the covenants and half year reporting requirements.

The Group has also successfully transitioned 100% of our cash investments into ESG (sustainable) Money Market funds, further enhancing our sustainability vision.

In line with the Group's investment policy, excess cash is invested in a range of products; including call accounts, money market deposits and money market funds. The Group actively monitors its counterparty exposure to protect its capital investments and reduce risk. Accordingly, the Group opened two additional money market funds, both of which hold an AAA rating.

The main functional currencies of the Group are Sterling, Euro, Chinese Renminbi, US Dollar, Singapore Dollar, Hong Kong Dollar and Australian 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 exposures.

In certain cases, where the Group gives or receives short-term loans to and from other Group companies that differ from the Group's reporting currency, it may use short-dated foreign exchange swap derivative financial instruments to manage the currency and interest rate exposure that arises on these loans.

ESG

The Group is committed to become carbon net zero within five years. We are now securing over fifty percent of our global energy from renewable sources and we look forward to working with our remaining landlords and energy suppliers to transition the remaining offices to renewable energy. We have also increased our reporting capability and we have engaged with the Carbon Disclosure Project (CDP) for the first time this year.

The Group is announcing today our commitment to change over one million lives within ten years, by giving back to society using our skills as a recruiter. We will do this by working with people in need through charities, community groups, schools and every day as a recruiter, hosting webinars and placing people in the next stages of their careers. Our social impact work is integral to who we are, and to the communities in which we operate. This work re-enforces our commitment to the United Nationals Sustainable Development Goals: to increase gender equality; provide decent work and economic growth; and reduce inequalities within society.

To further re-enforce our commitment to sustainability, we recently renegotiated our debt financing with BBVA, linking our revolving credit facility to environmental and social sustainability KPIs. We are also launching today our inaugural sustainability report, a copy of which can be downloaded on our website.

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 interim financial statements to August 2022 (review period).

The Group had £163.8m of cash as at 30 June 2021, with no debt except for IFRS 16 lease liabilities of £91.0m. 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 the first half of the year, the 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 there remains reductions in travel and entertaining expenses. 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 would cause an issue. As a result, given the strength of performance in H1, 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 August 2022.

CAUTIONARY STATEMENT

This Interim Management Report ("IMR") has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The IMR should not be relied on by any other party or for any other purpose. This IMR contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

This IMR has been prepared for the Group as a whole and therefore gives greater emphasis to those matters that are significant to PageGroup plc and its subsidiary undertakings when viewed as a whole.

Page House

The Bourne Business Park

1 Dashwood Lang Road

Addlestone

Weybridge

Surrey

KT15 2QW

By order of the Board,

PageGroup will host a conference call, with on-line slide presentation, for analysts and investors at 9.00am on 9 August 2021, the details of which are below.

Link:

https://www.investis-live.com/pagegroup/60eea0d40ed69a0a004ac932/plas

Please use the following dial-in number to join the conference:

Please quote participant access code 54 14 22 to gain access to the call.

A presentation and recording to accompany the call will be posted on the PageGroup website during the course of the morning of 9 August 2021 at:

http://www.page.com/investors/investor-library.aspx

Enquiries:

This announcement contains inside information for the purposes of article 7 of EU Regulation 596/2014 and Article 7 of Onshore Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the EUWA. The person responsible for making this announcement on behalf of PageGroup is Kelvin Stagg, Chief Financial Officer.

INDEPENDENT REVIEW REPORT TO PAGEGROUP PLC

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2021 which comprises the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated balance sheet, the condensed consolidated statement of changes in equity, the condensed consolidated statement of cash flows and the related notes 1 to 12. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2021 is not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements 2410 (UK and Ireland), "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in note 2, the annual financial statements of the Group will be prepared in accordance with UK adopted IFRSs. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK adopted International Accounting Standard 34, "Interim Financial Reporting".

Responsibilities of the directors

The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Auditor's Responsibilities for the review of the financial information

In reviewing the half-yearly report, we are responsible for expressing to the Company a conclusion on the condensed set of financial statement in the half-yearly financial report. Our conclusion, is based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

Use of our report

This report is made solely to the company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland), "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.

Ernst & Young LLP

London

6 August 2021

Condensed Consolidated Income Statement

For the six months ended 30 June 2021

The above results all relate to continuing operations

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2021

Condensed Consolidated Balance Sheet

As at 30 June 2021

Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 June 2021

Condensed Consolidated Statement of Cash Flows

For the six months ended 30 June 2021

Notes to the condensed set of interim results

For the six months ended 30 June 2021

1. General information

The information for the year ended 31 December 2020 does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

The unaudited interim condensed consolidated financial statements of PageGroup plc and its subsidiaries (collectively, the Group) for the six months ended 30 June 2021 were authorised for issue in accordance with a resolution of the directors on 6 August 2021.

2. Accounting policies

Basis of preparation

The unaudited interim condensed consolidated financial statements for the six months ended 30 June 2021 have been prepared in accordance with UK adopted International Accounting Standard 34 'Interim financial reporting' and with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

The unaudited interim condensed consolidated financial statements do not constitute the Group's statutory financial statements. The Group's most recent statutory financial statements, which comprise the annual report and audited financial statements for the year ended 31 December 2020, were approved by the directors on 2 March 2021. The interim condensed consolidated financial statements should be read in conjunction with the Annual Report and Accounts for the year ended 31 December 2020, which have been prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards adopted pursuant to Regulation (EC) No.1606/2002 as it applies in the European Union.

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 interim financial statements to August 2022 (review period).

The Group had £163.8m of cash as at 30 June 2021, with no debt except for IFRS 16 lease liabilities of £91.0m. 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 the first half of the year, the 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 there remains reductions in travel and entertaining expenses. 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 would cause an issue. As a result, given the strength of performance in H1, 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 August 2022.

New accounting standards, interpretations and amendments adopted by the Group

The Group has not adopted or early adopted any standard, interpretation or amendment that has been issued but is not yet effective. The same accounting policies and methods of computation as were followed in the most recent annual financial statements

3. 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. 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.

(a) Revenue, gross profit and operating profit by reportable segment