BRINGING SKILLED PEOPLE TOGETHER TO BUILD
THE FUTURE
FULL YEAR RESULTS PRESENTATION 2020 RESULTS FOR YEAR ENDED
30 NOVEMBER 2020
WE BRING SKILLED PEOPLE TOGETHER TO BUILD THE FUTURE
STEM
Technology | Life Sciences | Other | |||
Engineering | Banking & | ||||
Finance |
GLOBAL FOOTPRINT
UNIQUE OPPORTUNITY
FLEXIBLE WORKING
The short-to-mid term project work often required or desired from STEM specialist workers
Employed Freelance Permanent
contractor contractor
2 Note 1: Business mix is based on % of net fees
SThree is at the centre of two long term secular trends with
a unique global footprint to maximise this opportunity
RECURRING REVENUE NATURE OF OUR FLEXIBLE WORKING FOCUS HAS HIGHLY ATTRACTIVE ECONOMICS
Resilient in | ||||||
Particularly | Higher lifetime | More | Growth in | uncertain | Counter | |
suited to STEM | predictable | High barriers | markets and | |||
value and | margin at | cyclical cash | ||||
staffing | and visible | to entry | strong as | |||
profitability | scale | dynamics | ||||
market | earnings | markets | ||||
improve |
89% | 40% | |
89% of staffing revenue in 2019 was temporary staffing, of | Contract lifetime value is circa 40% greater than | |
which 43% relates to professional staffing | Permanent equivalent | |
(Staffing Industry Analysts May 2020) | (Sthree internal data Q4 2020) |
3
WE ARE THE ONLY GLOBAL PURE-PLAY STEM SPECIALIST
WE ARE UNIQUE
4 | 4 |
RESILIENT PERFORMANCE DRIVEN BY OUR UNIQUE FOCUS ON STEM AND FLEXIBLE WORKING
RevenueNet fees
£1,203m | £308.6m | |
down 9% YoY | down 8% YoY | |
Operating profit | Free cash flow conversion % | |
£31.3m | 178% | |
adjusted operating profit down 48% YoY | 2019: 68% | |
Final dividend reinstated - 5.0p (2019: 0.0p)
Strong balance sheet | |
£50m | Net cash position as |
at 30 November 2020 | |
30 November 2019: £11m | |
Increase in Contract business mix | |
76% | FY 2019: 74% |
Net fees generated internationally | |
89% | FY 2019: 87% |
International represents our businesses outside the UK
5 Note 1: Numbers presented on an adjusted continuing operations basis excluding discontinued operations in Australia
Note 2: Free cash flow and net cash presented on an adjusted Group basis
Note 3: YoY movement is at constant currency
COVID-19
6
OUR FOCUS ON OPERATIONAL EXECUTION DELIVERED
Progress in KPIs
Market share gains
USA, Germany, Netherlands and UK
Net promoter score
52
2019: 44
Sequential improvement across H2
Sales activity | Contractor retention |
increased | rates up |
Contractor order | Productivity per |
book stabilised | head up YoY |
7
FOCUSED EXECUTION GUIDED BY OUR PURPOSE
Three phases of | Initial response | Ongoing management | Recovery phase | ||||
response to the | |||||||
COVID-19 pandemic | |||||||
by SThree |
KEEPING OUR PEOPLE,
CANDIDATES AND CLIENTS SAFE
- >95% of staff working at home
- THRIVE wellbeing platform
- Cultivating future talent such as Tech Career Pathways programme in the USA
8
ENSURING ECONOMIC VIABILITY AND
A VIBRANT BUSINESS
- Dedicated COVID-19 crisis team of key senior managers set up to mitigate any impacts
- Careful cost and cash management
- Longer term kept front of mind, focussed on achieving CMD ambitions
ENSURING BUSINESS CONTINUITY AND ONGOING EFFECTIVE OPERATIONS
- Providing technology and tools to operate remotely, with over 2,200 laptops deployed in response to the pandemic
- Sentiment surveys to better understand clients' needs
- Adapting services for new reality
- #STEMSeries to nurture interest in our industries
OUR PURPOSE IN ACTION
Our purpose has never been more relevant; 'Bringing skilled people together to build the
future' and help tackle the global health crisis
MAINZ, Germany, December 31, 2020 - BioNTech SE (Nasdaq: BNTX) today wants to express its thanks and gratitude not only to its employees but also to the many partners who have assisted the company in successfully developing a vaccine for COVID-19.BioNTech
acknowledges that without the tireless effort from its' employees and
partners, who have played a pivotal role in this effort, it would not have been able to achieve this historic company milestone, a journey which only began in early 2020.
9
https://biontechse.gcs-web.com/news-releases/news-release-details/biontech-recognizes-employees-and-partners-their-support
PERFORMANCE
10
RESILIENT PERFORMANCE DESPITE IMPACT OF COVID-19
FY 2020 | FY 2019 | Actual movement | LFL movement* | |
Revenue | £1,202.6m | £1,324.7m | -9% | -9% |
Contract net fees | £233.4m | £251.4m | -7% | -7% |
Permanent net fees | £75.2m | £86.6m | -13% | -13% |
Total net fees | £308.6m | £338.0m | -9% | -8% |
Operating profit | £31.3m | £60.0m | -48% | -48% |
Conversion ratio | 10.1% | 17.8% | -7.7%pts | -7.6%pts |
Profit before tax | £30.1m | £59.1m | -49% | -49% |
Taxation | (£11.7m) | (£15.9m) | ||
Profit after tax | £18.4m | £43.2m | -57% | |
Note 1: *Movement is at constant currency, on an adjusted basis
11 Note 2: Numbers presented on an adjusted continuing operations basis excluding discontinued operations in Australia Note 3 Conversion ratio = operating profit expressed as a % of net fees
Note 4: FY 2020 figures are adjusted for the impact of £0.5 million in net exceptional strategic restructuring income
Note 5: FY 2019 figures are adjusted for the impact of £2.3 million in net exceptional strategic restructuring costs and CEO change costs.
Note 6: 2020 adjusted ETR of 39.0%
OPERATING PROFIT AFTER COST SAVINGS AND ONE-OFF ITEMS
One off items | ||
£60.0m | (£11.4m) | |
(£18.0m)
£1.2m | ||||||||||
£7.5m | (£3.6m) | |||||||||
£31.3m | ||||||||||
(£1.1m) | ||||||||||
(£3.3m) | ||||||||||
Operating profit | Permanent | Contract | People costs | IT/ other | Impairments | Business right | Government | Operating profit |
FY 2019 | net fees | net fees | operational | sizing costs | assistance | FY 2020 | ||
costs |
12 Note 1: Numbers presented on an adjusted continuing operations basis excluding discontinued operations in Australia
Note 2: FY 2020 figures are adjusted for the impact of £0.5 million in net exceptional strategic restructuring income
Note 3: FY 2019 figures are adjusted for the impact of £2.3 million in net exceptional strategic restructuring costs and CEO change costs.
IMPROVING UNDERLYING SEQUENTIAL PERFORMANCE IN H2
Productivity YoY | Net fee growth YoY |
+12%
0% |
-6% | -4% |
-10%
-7% | |
-12% | -14% |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
- Productivity up 4% in H2
- Sequential improvement in net fee growth from Q3 to Q4 across all our major geographies
DACHUSA
EMEA excl DACH GROUP
13 Note 1: Numbers presented on an adjusted continuing operations basis excluding discontinued operations in Australia
Note 2: Productivity expressed as net fees / average total employees
BENEFIT OF FLEXIBLE WORKING & STEM ECM NET FEES GREW 11% YOY
2015 | 2019 | 2020 | |
7% | |||
26% | 23% | ||
36% | |||
64% | 74% | ||
Contract | Contract | ||
57% | |||
51% |
- Employed contractor model 'ECM' has attractive margins, c40% higher than freelance
- Contractor LTV is c40% higher than Permanent equivalent
24%28%
76%
Contract
48%
Employed Contractor 'ECM'
Freelance Contractor
Total Contract
Permanent
14 Note 1: Employed contractor model ("ECM") where a skilled specialist is legally employed by Sthree typically on a back to back contract with the end client
Note 2: LTV - Life time value represents the value of total net fees generated during the life cycle of a contractor
ROBUST BALANCE SHEET WITH DEBT FACILITIES UNDRAWN
30 Nov 2020 | 30 Nov 2019 | Net working capital | |||
Intangible assets | £4.4m | £8.0m | Permanent | £3.2m | |
Property, plant & equipment | £7.9m | £6.8m | Contract | £76.3m | |
Net working capital | £79.5m | £98.0m | £79.5m | ||
Net lease liabilities | (£2.6m) | £0.0m | |||
Provisions | (£12.5m) | (£9.7m) | £50m revolving credit facility with Citibank | ||
and HSBC, committed to May 2023. | |||||
Net tax assets | £1.9m | £3.1m | |||
£50m Bank of England's COVID Corporate | |||||
Net cash | £49.9m | £10.6m | Financing Facility, available until March 2021. | ||
Net assets | £128.5m | £116.8m | |||
15 Note 1: Presented on a Group basis
STRONG CASH MANAGEMENT AND WORKING CAPITAL UNWIND DRIVES IMPROVED FREE CASH FLOW CONVERSION
FY 2020 | Uses of free cash |
£16.6m £76.9m
£9.2m
£21.6m
£29.5m
Operating profit Non-cash items | Tax deferrals | Working | Operating cash |
capital | flow |
261%
2019: 91%
Operating cash flow conversion ratio
16 Note 1: Presented on an adjusted Group basis
Note 2: Prior year has not been restated for IFRS16 as permitted under the specific transitional provisions within the standard
(£10.5m)
(£14.0m)
£52.4m
Tax paid | Bank Interest/ | Free cash flow | |
Lease principal | |||
payments | 178 | % | |
2019: 68% |
Free cash flow conversion ratio
£5.3m
CAPEX
£1.1m
LTIPs/tracker shares/ other
£6.7m
Dividends
£39.3m
Net increase in cash balance
RESILIENT PERFORMANCE LEADING TO
REINSTATEMENT OF FINAL DIVIDEND
Adjusted | As Reported | Adjusted | As Reported | Adjusted | As Reported | |||
FY 2020 | FY 2020 | FY 2019 | FY 2019 | Actual Growth | Actual Growth | |||
Profit after tax | £18.4m | £18.8m | £43.2m | £41.3m | -57% | -55% | ||
For basic EPS | 132.1m | 132.1m | 129.9m | 129.9m | +2% | +2% | ||
Weighted | ||||||||
average | Dilutive impact of share plans | 4.3m | 4.3m | 3.7m | 3.7m | +16% | +16% | |
number of | ||||||||
shares | ||||||||
Fully diluted EPS | 136.4m | 136.4m | 133.6m | 133.6m | +2% | +2% | ||
Basic | 13.9p | 14.2p | 33.2p | 31.8p | -58% | -55% | ||
EPS | ||||||||
Diluted | 13.5p | 13.8p | 32.3p | 30.9p | -58% | -55% | ||
Interim | - | - | 5.1p | 5.1p | - | - | ||
DPS | ||||||||
Final | 5.0p | 5.0p | - | - | - | - | ||
Full Year | 5.0p | 5.0p | 5.1p | 5.1p | -2% | -2% | ||
17 | Note 1: Numbers presented on a continuing operations basis excluding discontinued operations in Australia |
BUSINESS OVERVIEW
18
GLOBAL BUSINESS OPERATING IN THE BEST STEM MARKETS
Net fees
3% | ||
3% | ||
25% | 34% | |
23% | ||
32% | ||
42%
38%
DACHUSA
EMEA excl DACH | APAC |
19 Note 1: Business mix is based on % of net fees
Note 2: All pie charts: Outside FY 2020; Inside FY 2019
Note 3: Size of bubble denotes the size of the staffing markets based on revenue (Source: SIA Global staffing Industry)
GROUP KPIS
Revenue | Net fees |
£1,203 | £308.6 |
million | million |
Average sales headcount | NPS |
2,193 | 52 |
FTE |
Net fees (£m)
FY20 | £308.6 |
FY19 | £338.0 |
FY18 | £316.5 |
Contractor Order Book |
£92.4m £98.1m
£76.6m
FY 2017 | FY 2018 | FY 2019 |
-10% | Division |
YoY |
24% | 76% | |
£88.8m | 26% | 74% |
FY 2020
Sector
23%
20%
21%
22%
2%
3%
45% 45%
11%
8%
Note 1: All pie charts: Outside FY 2020; Inside FY 2019 Contract Permanent
Note 2: Numbers presented on an adjusted continuing operations basis excluding discontinued operations in Australia
Note 3: All variances at constant currency unless otherwise stated
20 Note 4: Contractor order book represents value of net fees until contractual end dates, assuming all contracted hours are worked
Note 5: Contractor order book restated at FY 2020 average rates
Technology
Engineering
Life Sciences Other
Banking & Finance
DACH
(34% OF GROUP NET FEES)
Revenue | Net fees | Average sales headcount | NPS |
£371.9 | £105.8 | 786 | 55 |
million | million | FTE | |
Division | Sector | ||
18% | |||
35% | 65% | 16% | |
35% | 65% |
16% 18%
58%
60%
7%
6%
Contract
Permanent
Net fees (£m)
FY20
FY19
FY18
Technology
Banking &
Finance
Engineering
Life Sciences
Other
£105.8
£109.3
£99.4
21 Note 1: All pie charts: Outside FY 2020; Inside FY 2019
Note 2: All variances at constant currency unless otherwise stated
DACH
(34% OF GROUP NET FEES)
Contractor Order Book | +5% |
YoY |
Austria
Switzerland
5% 3%
£27.8m £29.1m
£23.6m
£20.2m
FY 2017 | FY 2018 | FY 2019 | FY 2020 |
92% |
Contractor order book 3 year CAGR growth of +13% | Germany |
Note 1: All variances at constant currency unless otherwise stated
Note 2: Contractor order book represents value of net fees until contractual end dates, assuming all contracted hours are worked
22 Note 3: Contractor order book restated at FY 2020 average rates
Note 4: Lünendonk is German peer of the global organisation, Staffing Industry Analyst - the body that analyses the world wide recruitment industry
- Resilient performance with FY net fees down 3% YoY (Contract down 3% and Permanent down 3%)
- Life Sciences up 4% driven by exceptional Q1 and increased demand in H2 in Clinical Research & Development
- Technology was flat in the year with increasing demand for Cyber Security and Data Science skills
- Growth in our STEM market share and now the third largest IT Contract recruiter in Germany
- Average sales headcount up 1% with Technology up 5% and Life Sciences down 1%
EMEA EXCL DACH
(38% OF GROUP NET FEES)
Revenue | Net fees |
£588.8 | £117.6 |
million | million |
Average sales headcount NPSNet fees (£m)
934 | 53 | FY20 | £117.6 |
FY19 | £141.2 | ||
FY18 | £141.8 | ||
FTE | |||
Division
14%
16%
86%
Sector |
3% |
12% |
4% |
11% |
84%
Contract
Permanent
25% 22% | 51% 50% | Technology | |
Banking & | |||
Finance
Engineering
12%
Life Sciences
10%
Other
23 Note 1: All pie charts: Outside FY 2020; Inside FY 2019
Note 2: All variances at constant currency unless otherwise stated
EMEA EXCL DACH
(38% OF GROUP NET FEES)
Contractor Order Book | -26% |
YoY |
• Net fees down 16% with
Dubai
Other
5%
Netherlands | Contract down 15% and |
Permanent down 26% |
£43.9m £41.9m
£37.5m
£30.9m
FY 2017 | FY 2018 | FY 2019 | FY 2020 |
Contractor order book decline driven by UK and the Netherlands
Belgium 4%
10%
France 11%
30%
UK
• Challenging performance in |
the UK with net fees down 19% |
40% •
FY
2020
• Market share gained in the Netherlands and UK
• Average sales headcount was down 16% with UK down 18% and the Netherlands down 13%
Note 1: All variances at constant currency unless otherwise stated
Note 2: Contractor order book represents value of net fees until contractual end dates, assuming all contracted hours are worked
Note 3: Contractor order book restated at FY 2020 average rates
24 Note4: Other includes: Ireland 2%, Luxembourg 2%, Spain 1%
Note 5: The Netherlands temporary technical sector market turnover (ABU Data 2020)
Note 6: SIA 2020
USA
(25% OF GROUP NET FEES)
Revenue | Net fees | |
£227.5 | £77.3 | |
million | million | |
Division | ||
20% | 80% | |
22% | 78% |
Contract
Permanent
Average sales headcount NPSNet fees (£m)
389 | 51 | FY20 |
FY19 |
FTE | FY18 | ||||||
Sector | 1% | ||||||
15% | |||||||
3% | 14% | ||||||
8% | |||||||
13% | Technology | ||||||
47% 41% | |||||||
Banking & | |||||||
Finance | |||||||
29% | 29% | Engineering | |||||
Life Sciences | |||||||
Other | |||||||
£77.3
£76.7
£66.7
25 Note 1: All pie charts: Outside FY 2020; Inside FY 2019
Note 2: All variances at constant currency unless otherwise stated
USA
(25% OF GROUP NET FEES)
Contractor Order Book | +1% |
YoY | |
£27.8m | £28.1m |
£24.1m | |
£18.2m |
FY 2017 | FY 2018 | FY 2019 | FY 2020 |
- USA demonstrated its strength with net fees up 2% in the year
- Life Sciences up 16% driven by increased activity in H2 in Clinical Operations, Product Development and Quality Assurance
- Technology up 9% with increased demand for Tech skills that support digital transformation such as Mobile Applications and Software Development
- Growth in our market share as we outperformed the STEM market
- Key area of focus for the Group with average sales
headcount down 1%
Contractor order book 3 year CAGR growth of +16%
Note 1: All variances at constant currency unless otherwise stated
Note 2: Contractor order book represents value of net fees until contractual end dates, assuming all contracted hours are worked
26 Note 3: Contractor order book restated at FY 2020 average rates
Note 4: USA SIA September 2020 update
APAC
(3% OF GROUP NET FEES)
Revenue
£14.4
million
Division
Contract
Permanent
Net fees
£7.9
million
20%
16%
84%
80%
Average sales headcount | NPS |
86 | 27 |
FTE
Sector
26%
30%
1%
2%
19% 25%
Net fees (£m)
FY20 | £7.9 |
FY19 | £10.8 |
FY18 | £8.6 |
43% | Technology | |
54% | ||
Banking & | ||
Finance
Engineering
Life Sciences
Other
Note 1: All pie charts: Outside FY 2020; Inside FY 2019
27 Note 2: All variances at constant currency unless otherwise stated
Note 3: APAC region now excludes discontinued operations in Australia
APAC
(3% OF GROUP NET FEES)
Contractor Order Book | -8% | ||
YoY | |||
Singapore | |||
£0.7m | £0.7m | £0.7m | 26% |
£0.6m |
FY 2017 | FY 2018 | FY 2019 | FY 2020 |
Contractor order book impacted by Japan with Singapore up 10% YoY
74%
Japan
- Net fees down 26% in the year driven by transactional nature of our Japan business which is 94% Permanent
- Japan, our largest country in the region, was down 25% with Technology down 9%, Life Sciences down 46% and Banking & Finance down 53%
- Singapore net fees down
FY 29% YoY
2020
• Average sales headcount was down 18% in the region with Japan headcount down 10%
Note 1: All variances at constant currency unless otherwise stated
28 Note 2: Contractor order book represents value of net fees until contractual end dates, assuming all contracted hours are worked
Note 3: Contractor order book restated at FY 2020 average rates
STRATEGY & OUTLOOK
29
PROGRESS AGAINST OUR STRATEGIC PILLARS
Leveraging our position at
the centre of STEM to deliver
sustainable value to our candidates and customers
- Delivered 75 virtual events within our #STEMseries, with 2,754 participants
- Performed a strategic portfolio review
- Brand purpose aligned to SThree's core value proposition
- Delivered two community outreach programs
Create a world class
operational platform
through data, technology and infrastructure
- Appointed Chief Operating Officer
- Systems and hardware to support remote working rolled out with 2,700 laptops deployed
- STEM market intelligence sentiment surveys
- SAP cloud migration
To be a leader in
markets we choose
to serve
- DACH business recognised as third largest IT Contract recruiter in Germany
- Focus on improving customer satisfaction results with NPS up 8 pts to 52
- Thought leadership to maximise our position in our markets
Find, develop, retain
great people
- Pulse surveys on employee experience
- 5,900 hours of learning delivered
- Launched THRIVE, our commitment to heath and wellbeing in May
- New global D&I strategy launched
- Female management level 3 +27%pts to 58%, level 4 +16%pts to 27%
Note 1: #STEMSeries - https://www.sthree.com/en/about-us/virtual-events/
30 Note 2: Level 3 cohort represents Sales Business Managers & level 4 cohort represents Sales Directors
Note 3: Lünendonk is German peer of the global organisation, Staffing Industry Analyst - https://www.luenendonk.de/produkte/listen/luenendonk-liste-2020-fuehrende-anbieter-fuer-rekrutierung-vermittlung-und-steuerung-von-it-freelancern-in-deutschland/
ESG: EMPOWERING A SUSTAINABLE FUTURE THROUGH STEM
We have defined three clear areas where we can have the biggest impact
Building a | Building an | Building on our |
green future | inclusive workforce | business ethics |
for the future |
- We will reduce our carbon footprint by 20% by 2024
- Partner with clients to build future powered by clean energy
-
Aim to grow our renewables business and provide right talent for transition to low
carbon economy
• Positively impact 150,000 lives by 2024 through | • Continue to realise our purpose by facilitating |
delivering recruitment solutions and community | partnerships with all our stakeholders to go |
programmes | beyond what is expected to achieve the |
• Tackle inequality and diversify the industries we | Sustainable Development Goals |
partner with through STEM career pathways | |
program |
- Use skills and knowledge to provide career support to people at risk of unemployment
2020 ESG achievements | ||
reduction in our | lives positively | hours of volunteering to |
56% carbon footprint | 15,764 impacted by | 2,408 strengthen our communities |
31 | SThree | |
MARKET OUTLOOK - KEY THEMES ARE GAINING TRACTION
Management of a more flexible and resilient workforce of the future
- Importance and difficulty of finding the right people
- Investigating alternative markets to find talent
Re-building supply chains with a focus on resilience and sustainability (just in time to just in case)
- Focus on planning for the future
- Innovative solutions for challenges
Digital transformation acceleration
- Need for specialist roles: - Automation
- Cyber Security
- Infrastructure
- e-channels
32
Note 1: Sthree Q4 Sentiment survey - over 320 candidates and 230 clients surveyed
THE FOCUS, ACROSS ALL THEMES
INVESTING:
Businesses are investing to ensure ongoing resilience post-pandemic
- 40% of employers expect that employees will require digital reskilling
- 48% investing in technology
- 34% investing in high calibre talent
AGILITY:
Organisational agility is key
- People at the forefront
- Remote work is here to stay, transforms geographical job markets
- 45% specifically stated they demand more adaptable employees
- 37% adopting agile methodologies
DEMAND:
Demand for the right STEM talent still exceeds supply
- Finding the right talent is as challenging as ever despite increased candidate pools
- 56% infrastructure, network and cloud
- 59% Cybersecurity
- 44% mobile applications
33
OUTLOOK - OUR FOCUS GOING FORWARD
Continue to drive the Group forward towards our long term 2024 ambitions
Build on 2020 success in driving
first-class strategic execution
across the business, ensuring we are able to best capitalise on opportunities
Secular trends of STEM and flexible working will become more powerful over the next year,
as shown in our sentiment surveys
In line with our strategic pillars,
continue to invest in data,
technology and our go to market approach, leveraging the power of our platform
34
MAKING PROGRESS AGAINST GROUP AMBITIONS 2024
Market share of STEM2020 Progress Conversion ratio (CR%1)2020 Progress
To grow Group | 50% | 21-24% | ||
market share by | ||||
To 3% by 2024 | 2020: 10.1% | |||
(2020: 2%) | ||||
Free cash flow (FCF) CR%2 | 2020 Progress | People and society | 2020 Progress | |
To drive a free cash | 75% | • To maintain Learning & Development spend | ||
at 5% of operating profit | ||||
flow CR% of at least | ||||
• To grow productivity3 per head over |
2020 - FCF CR%: 178% | the period by 1% - 2% pa |
• To reduce our absolute CO2 emissions by 20% | |
Note 1: Ratio of operating profit to net fees
Note 2: Free cash flow CR% represents cash generated from operations for the year after deducting tax, net interest cost and rent payments, stated as a percentage of operating profit
Note 3: Productivity expressed as net fees / average total employees
35
Q&A
36
FINANCIAL CALENDAR
20212022
15 March | Q1 Trading Statement | 31 January | Annual results for the year ended 30 November 2021 | |
22 April Annual General Meeting
14 June Trading update for the six months ended 31 May 2021
19 July | Interim results for the six months ended 31 May 2021 |
13 September Q3 Trading Statement
13 December Trading2021 update for the year ended 30 November
37
APPENDIX
38
HISTORICAL NET FEES AND CONTRACT MARGIN
Full Year | £218.2m | £235.7m | £258.7m |
£117.4m | £125.2m | £138.9m | |
Net fees | £100.8m | £110.5m | £119.8m |
20.0% | 19.8% | 19.9% | |
Contract margin% | |||
2014 | 2015 | 2016 |
£287.7m
£153.3m
£134.4m
H1 H2
19.8%
2017
£321.1m | £338.0m | £308.6m |
£172.7m | £177.1m | £158.7m |
£148.4m | £160.9m | £149.9m |
20.7%
20.3%
19.9%
2018 | 2019 | 2020 |
39 Note 1: 2019 and 2020 presented on an adjusted continuing operations basis excluding discontinued operations in Australia
HISTORICAL OPERATING PROFIT AND CONVERSION RATIO
Full Year
Adjusted Operating profit
Adjusted
Conversion ratio %
£29.8m
£21.4m
£8.4m
8.3% | 13.7% |
2014 |
£41.5m£41.3m
£27.4m£26.0m
£14.1m£15.3m
12.8% | 17.6% | 12.8% | 16.0% |
20152016
£44.9m | £53.9m | £60.0m | £31.3m | |||
£33.5m | £35.2m | |||||
£25.6m | ||||||
£17.4m | ||||||
£19.3m | £20.4m | £24.8m | £13.9m | |||
H1 | H2 | |||||
14.4% | 15.6% | 13.7% | 16.8% | 15.4% | 17.8% | 9.3% | 10.1% |
2017 | 2018 | 2019 | 2020 |
HY FY
40 Note 1: 2019 and 2020 presented on an adjusted continuing operations basis excluding discontinued operations in Australia
TOTAL GROUP PERFORMANCE
FY 2020 | FY 2019 | Actual movement | LFL movement* | |
Revenue | £1,214.1m | £1,345.0m | -10% | -10% |
Contract net fees | £235.2m | £254.6m | -8% | -7% |
Permanent net fees | £75.6m | £87.8m | -14% | -14% |
Total net fees | £310.8m | £342.4m | -9% | -9% |
Operating profit | £29.5m | £60.0m | -51% | -51% |
Conversion ratio | 9.5% | 17.5% | -8.0%pts | -8.0%pts |
Profit before tax | £28.3m | £59.1m | -52% | -52% |
Taxation | (£11.7m) | (£15.9m) | ||
Profit after tax | £16.6m | £43.2m | -62% | |
41 | Note 1: *Movement is at constant currency, on an adjusted basis | Note 4: FY 2020 figures are adjusted for the impact of £0.5 million in net exceptional strategic restructuring income |
Note 2: Numbers presented on an adjusted Group basis | Note 5: FY 2019 figures are adjusted for the impact of £2.3 million in net exceptional strategic restructuring costs and CEO change costs. | |
Note 3 Conversion ratio = operating profit expressed as a % of net fees | Note 6: 2020 adjusted ETR of 41.5% |
FOREIGN EXCHANGE IMPACT SMALL IN 2020
Year ended | Year ended | YoY exchange | |||||
30 November 2020 | 30 November 2019 | rate movement | |||||
Average | Closing | Average | Closing | Average | Closing | ||
EUR € | 1.14 | 1.12 | 1.13 | 1.17 | -0.2% | +4.8% | |
USD $ | 1.29 | 1.33 | 1.27 | 1.29 | -1.0% | -3.0% | |
Year ended | Year ended | ||||||
30 November 2020 | 30 November 2019 | ||||||
Net Fees | Operating profit | Net fees | Operating profit | ||||
EUR € | £1,778k | £448k | £1,963k | £595k | Impact of a 1% | ||
USD $ | £775k | £245k | £770k | £230k | change per annum | ||
The Group's net fees and operating profit decreased by £1.0m and £0.2m respectively, due to a modest FX headwind
42
COST BASE ANALYSIS
Cost base | Payroll costs |
Payroll | Property | Support Services | Sales | |||
Advertising | IT & Professional | |||||
Other |
43
IFRS16 IMPACT ON THE INCOME STATEMENT AND BALANCE SHEET
Adjusted
Marginal impact to operating profit of £0.5m and profit before tax of (£0.2m)
44
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SThree plc published this content on 25 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2021 11:11:03 UTC