PageGroup PLC — Investor Presentation 2012

Jun 30, 2012

In just thirty-six years, Michael Page International has grown to become one of the world's best-known and most respected recruitment consultancies. Today, we are proud to set the standard within our profession for specialist service, with a personal touch.

Contents

HIGHLIGHTS 2
STRATEGY6
interi m manage ment port	8
Cautionary statement 8
Group strategy 9
Group results 10
Operating profit and conversion rates11
Taxation and earnings per share12
Cash flow 13
Dividends and share repurchases13
Current trading and outlook14
Key Performance Indicators ("KPIs")15
Principal risks and uncertainties16
Treasury management, bank facilities
and currency risk17
Going concern17

independent view re port 18
FINANCIAL STATEMENTS20
ponsibility ment 38

*Opened in H1 2012

HIGHLIGHTS: Strong results against a backdrop of deteriorating market conditions

Revenue (£m)

Profit Before Tax (£m)†

Dividend Per Share (pence)

Gross Profit (£m)

Basic Earnings Per Share (pence)†

7.9†	2012
10.0†	2011
6.6†	2010
0.5†	2009
18.3	2008

Headcount At Year End

5,321	2012
5,121	2011
3,860	2010
3,702	2009
5,535	2008

Group gross profit broadly flat -0.5% (+2.2%*), the business remains profitable in all key markets

78% of gross profit generated outside the UK

58% of gross profit generated from non Finance and Accounting disciplines

Headcount up by 35 (+0.7%) in first half of 2012

Share repurchases of £9.4m during the first half of 2012

Strong balance sheet with net cash at 30 June 2012 of £32.4m

Interim dividend held at 3.25p

† Before non-recurring/exceptional items. * Constant exchange rates.

PERFORMANCE IN H1 2012: Continued geographic and discipline diversification

GEOGRAPHIC ANALYSIS OF GROSS PROFIT

• 78% of gross profit generated outside of the UK
• Different growth rates across geographies, rapidly changing shape of the Group
• Asia 11% of Group in H1, the greatest source of growth
• Headcount +35 (+1%) in H1 2012 (+623 in H1 2011)

PROPORTION OF GROUP GROSS PROFIT 0 20 40 60 80 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 %Finance & Accounting KEY: Marketing, Sales & Retail Engineering, Property & Construction, Procurement & Supply Chain Legal, Technology, HR, Secretarial, Healthcare 2007 2008 2009 2010 2011 2012 20% 20% 18% 42% H1 2012

DISCIPLINE ANALYSIS OF GROSS PROFIT

• Continued diversification avoids exposure to any one discipline or sector, e.g. Financial Services
• 20% of the business (newer disciplines) growing at 14%*
• Ongoing launch and roll-out of new disciplines

PERFORMANCE IN H1 2012: Performance by region – at a glance

EMEA – Continental Europe, Middle East and Africa (43% of Group)

Broad spread of profit contribution across region

Strong growth in Germany, up 25%*

Opened new offices in Casablanca and Cape Town

gross profit

14

DISCIPLINES

OFFICES

2,185 EMPLOYEES

United Kingdom (22% of Group)

• Market conditions remained difficult in H1 2012
• Gained market share in a very competitive market
• Cautious approach to headcount reflecting current conditions
• Reduced reliance on Financial Services, now 5% of UK
• UK continues to be strong source for international transfers

-6.5% gross profit

18

DISCIPLINES

30 OFFICES

1,243 EMPLOYEES

Asia Pacific (21% of Group)

• Asia +19%* growth in gross profits
• Australia and New Zealand +9%* in gross profits
• June, an all time record in Japan, China and Singapore
• New offices opened in Taipei and Suzhou

+14.1%*

gross profit

13

DISCIPLINES

24 OFFICES

1,050 EMPLOYEES

Americas (14% of Group)

• Clear market leader in Latin America with 5 countries, 20 offices and 580 headcount
• Continuing to invest in platform for future growth
• Launched in Colombia in Bogota and opened new office in Macaé, Rio de Janeiro
• In North America conditions remain tough, new Head of North America appointed, transfer from UK (18 years in Group)

-1.3%* gross profit 13 30

EMPLOYEES

DISCIPLINES

A BUSINESS STRUCTURE FOR GROWTH: One clear, consistent strategy of organic growth, continuing diversification by geography and discipline

In 2003, at the trough of a previous downturn we had a platform of 16 countries, 77 country discipline businesses, 92 Directors and 2,260 staff. From that platform we grew our profit before tax in four years from £23 million to £147 million, in 2007.

Today we have a platform of 34 countries, 280 country disciplines, 230 home grown directors and staff of 5,321. Building this platform impacts conversion rates and short-term profits, but we are trying to balance what we do today with our vision of what we can achieve in the future.

Business has been transformed over the last decade

*Austria, Belgium, Ireland, Luxembourg, Morocco, Poland, Portugal, Qatar, Russia, South Africa, Sweden, Switzerland, Turkey, UAE. 7

Positioned for growth

To achieve growth, diversification is important. Different markets, both geographies and disciplines, react differently to different conditions. In part it's about spreading the risk, but more importantly it's also about positioning the business into larger, less competitive markets, the economies of many of which are also predicted to grow faster. Here they are represented by the dark blue and in the last 12 years the proportion of our business that's in this category has improved from 12% to around half of our business. In the first half this category was up by only 2% because of the toughening global economy. Our track record though from 1991 to 2000, from 2003 to 2007 and last year i.e. 14 years was a compound annual growth rate in gross profit of 40% and we are sure it will be again.

Numerous opportunities for long-term growth so we will continue to invest

Almost 50% of fee earners now in markets where competition is low

Interim management report

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.

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

Group strategy

The Group's strategy is to expand and diversify the Michael Page business by industry sectors, by professional disciplines as well as by geography. This includes the Page Personnel, Michael Page and Michael Page Executive Search disciplines; the clear objective is to be the leading specialist recruitment consultancy in each of our chosen markets. As recruitment activity is dependent upon economic cycles, by being more diverse the dependency on individual businesses or markets is reduced making the overall Group more resilient. This strategy is pursued entirely through the organic growth of existing and new teams, offices, disciplines and countries, with a consistent team and meritocratic culture.

Our organic growth is achieved by drawing upon the skills and experiences of proven Michael Page management, ensuring we have the best and most experienced, home-grown talent in each key role. When we invest in a new business, we do so only with a long-term objective and in the knowledge that at some point there will be periods when economic activity slows. While it is difficult to predict accurately when these slowdowns will occur and how severe they will be, it has been our practice in the past and our intention in the future to maintain our presence in our chosen markets, but with close control over our cost base. Our team-based structure and primarily profit-share business model is scalable and the small team size also means that we can increase rapidly our headcount to achieve and maintain growth.

The focus of our organic growth in the last ten years has been to grow in emerging markets, where the outsourcing of recruitment particularly for specialist roles is underdeveloped and where there is limited competition. In many of these markets, we have achieved a market leading position and intend to embrace fully the opportunity by investing rapidly in headcount and opening in new cities and countries. The investment to take advantage of these opportunities in terms of new headcount, international transfers of management, new office space and start-up losses will limit short-term profitability but should provide a substantial platform for longer-term returns.

Our intention is always to maintain a strong balance sheet. As the business grows, there is a need for additional working capital, which is funded from operating cash flow, with surplus cash being returned to shareholders through dividends and share repurchases.

To increase the diversification of Michael Page International by organically growing existing and new teams, offices, disciplines and countries with a consistent team and meritocratic culture and consistent client and candidate delivery.

Group results

The Group's revenue for the six months ended 30 June 2012 increased by 0.1% to £502.6m (2011: £502.1m) and gross profit decreased by 0.5% to £273.9m (2011: £275.1m). At constant exchange rates, the Group's revenue increased by 2.6% and gross profit by 2.2%. In the first half, the mix of the Group's revenue and gross profit between permanent and temporary placements decreased slightly to 44:56 (2011: 45:55) and 79:21 (2011: 80:20), respectively. Typically, as economic conditions become more uncertain, permanent recruitment activity slows compared to temporary recruitment. This trend is also affected by the geographical performances across the Group, as our businesses in both Latin America and Asia are predominantly permanent rather than temporary recruitment in the specialist sectors. The gross margin on temporary placements in the first half of 2012 improved slightly to 20.8% (2011: 20.2%). Pricing has remained relatively stable throughout the first half of 2012, with a stronger pricing environment in rapidly growing markets, being offset by competitive pressures in the weaker UK and Southern European markets.

As the demand for recruitment services increases, the number of positions to be filled rises, candidate shortages begin to emerge, the time-to-hire period starts to reduce and there is less pressure on pricing. With the increased uncertainty and resultant reduction in market confidence that impacted parts of the Group during the first half of 2012, many of these factors trended negatively, albeit to differing degrees in our different geographic regions, creating an environment where productivity fell with less gross profit per fee earner able to be generated. The Group's strategy of growing organically, as well as maintaining market presence and a degree of spare capacity, means that the Group is operationally geared, which resulted in a proportionally larger decrease in operating profit than in gross profit. This conversion of gross profit to operating profit was also reduced by the amount of investment being made to facilitate and maintain growth in our newer markets and in markets where we see longer term potential.

In the first half of 2012, headcount was broadly flat, up by 35 (0.7%). We launched a new business in one new country in Bogota in Colombia, we also opened five new offices in Casablanca, Cape Town, Macaé (Brazil), Suzhou and Taipei.

With a small increase in gross profit adversely affected by the effects of exchange rates, a weaker economic environment in most of the Group's markets and investment for the future, operating profit from trading activities for the first half of 2012 decreased to £36.0m before exceptional items (2011: £45.4m). The Group's conversion rate of gross profit to operating profit from trading activities is now 13.1% before exceptional items (2011: 16.5%).

During the first half of 2012, we restructured the Group's regional management structure, which resulted in the removal of the Continental Europe and Americas regional management team, including one Executive Director.

Severance packages for this team, who had been employed by the Group for many years and were largely based in France, with accompanying high employment protection and social charges, totalled £7.8m within which are £1.5m of accelerated share plan related charges. These have been presented as an exceptional charge in the first half income statement. The payback period for this investment is around two years.

Europe, Middle East and Africa (EMEA)

Europe, Middle East and Africa (EMEA) is the Group's largest region, contributing 43% of Group gross profit in the first half. Revenue in the region increased by 0.9% to £211.5m (2011: £209.5m) and gross profit decreased by 1.9% to £117.9m (2011: £120.3m). In constant currency, revenue increased by 6.5% on the first half of 2011 and gross profit increased by 3.4%. The 1.9% decrease in gross profit resulted in a 21.1% decrease in operating profit before exceptional items for the first half of 2012 to £13.4m (2011: £17.0m), a conversion rate of 11.3% (2011: 14.1%).

Market conditions remained challenging across the region; with economic uncertainty, increasing austerity measures and levels of unemployment across Southern Europe further impacting market confidence. The weakening of the Euro relative to sterling during the second quarter, has impacted the results of the Eurozone countries, with year-on-year growth rates at constant rates of exchange some 5% higher than in reported.

Our business in Germany, now represents 16% of the region, and grew 25% year-on-year in constant currency against a strong prior year comparator. In France we grew 3% despite the uncertainties surrounding the French elections and the wider Eurozone issues. Headcount across the region decreased by 25 (1%) in the first half of 2012 to 2,185, but was still up 59 or 3% on June 2011. During the first half we opened new offices in Casablanca, Morocco, and in Cape Town, South Africa.

United Kingdom

In the UK, representing 22% of the Group's gross profit in the first half, revenue decreased by 10.4% to £146.0m (2011: £163.0m), gross profit decreased by 6.5% to £61.7m (2011: £66.0m) and operating profit before exceptional items was down 17.2% at £8.6m (2011: £10.4m).

Market conditions have remained tough, but broadly stable throughout the first half of 2012. Our Banking business continued to be affected strongly by conditions in the banking sector and was down over 50% year-on-year. However, several other businesses, particularly the more technical disciplines, continued to grow. Overall, operating profit decreased by 17%, with the conversion rate slightly down at 14.0% (2011: 15.8%). Headcount in the UK was down 3.8% during the first half of 2012 to 1,243 at the end of June 2012 (1,292 at 31 December 2011), but down some 171 on the previous peak of 1,414 at Q3 2011.

Asia Pacific

In Asia Pacific, representing 21% of the Group's gross profit in the first half, revenue increased by 23.3% to a record £94.6m (2011: £76.7m) and gross profit increased by 17.1% to £56.9m (2011: £48.6m). In constant currency, revenue increased by 20.4% and gross profit by 14.1%. Operating profit rose by 12.8% to £13.8m (2011: £12.2m), with the large investments in additional headcount and new offices in Taipei and Suzhou, partially offset by operational gearing and increased productivity, resulting in a small net decrease in the conversion rate to 24.3% (2011: 25.2%).

Australia, our largest business in the region, grew gross profits by 9% in constant currency. Market conditions were particularly strong in Western Australia and Queensland, benefiting from the strength of the mining and commodities sector. In Asia, despite the ongoing weakness in the Financial Services sector continuing to impact our growth in Tokyo, Hong Kong and Singapore, gross profits grew 19% in constant currency. Our newer businesses in Malaysia and India are progressing well. At the end of June, we had 1,050 staff in the region, an increase of 79 (8%) since the start of the year and assuming market conditions remain strong, further headcount will be added during the second half of 2012.

The Americas

In the Americas, representing 14% of the Group's gross profit in the first half, revenue decreased by 4.1% to £50.6m (2011: £52.7m) and gross profit decreased by 7.2% to £37.4m (2011: £40.3m). In constant currency, revenue increased by 1.1% and gross profit decreased by 1.3%. We continued to make significant investment in new countries and offices to build on our dominant market-leading position in Latin America. This, along with the one-off expense of a senior management charge taken in the normal course of business, decreased operating profit by 96.6% to £0.2m (2011: £5.8m), with a conversion rate of 0.5% (2011: 14.4%).

In North America we were impacted by the difficulties in the financial services sector and year-onyear gross profit was down by 3% in constant currency. However, our newer offices in Houston and San Francisco performed well. We have strengthened the management team in the region and expect to benefit from this in the future.

In Latin America, gross profit was down 1% year-on-year in constant currency. In Brazil, where we are the clear market leader with approaching 400 employees and where the economy has slowed compared to H1 2011, our activity levels were stable. Our other businesses in Latin America are growing strongly and accordingly we have invested in additional headcount in Mexico, Argentina and Chile to further enhance our market leading positions. Colombia our newest country in Latin America which opened at the start of 2012 has already recorded a small monthly profit. We also opened in Q2 an additional office in Macaé, Rio de Janeiro, to invest further in our growing global Oil and Gas business.

The Brazilian Real has weakened against Sterling compared to H1 2011, with year-on-year growth rates at constant rates of exchange some 10% higher than in reported. We now have 843 staff in the region, an increase of 30 (4%) since the start of the year.

Operating profit and conversion rates

As a result of the Group's organic long-term growth strategy, tight control on costs and profitbased bonuses, we have a business model that is operationally geared. The majority of our cost base, around 75%, relates to our staff, with the other main components being property and information technology costs. With a strategy of organic growth, the Group incurs start-up costs and operating losses as investments are made to grow existing and new businesses, open new offices and launch businesses in new countries. Furthermore, significant increases in headcount mean that it takes time to train staff before they become fully productive. These characteristics of our growth strategy and the levels of investment affect the conversion rates in any one reporting period.

Generally, in years when economic conditions are benign, revenue and gross profit grow. Operating profit grows at a faster rate due to a combination of higher productivity, stronger pricing and greater utilisation of infrastructure. In order to grow, we need to increase our headcount and ensure that we have the infrastructure to house and support them. When economic conditions weaken and recruitment activity slows, these factors work in reverse and are compounded by a shortening of earnings visibility.

The majority of our permanent placement activity is undertaken on a contingent basis, which means that on those assignments we only generate revenue when a candidate is successfully placed in a role. Our short-term visibility on these earnings is provided by the number of assignments we are working on, the number of candidates we have at interview and the stage they are at in the interview process. The average time to complete a placement, from taking on an assignment to successfully placing a candidate, tends to lengthen in a downturn, reducing productivity and the risk of the candidate being rejected or the assignment being cancelled increases, thereby further reducing our earnings visibility.

In a downturn, activity levels can slow quickly, causing revenue to decline quickly due to the contingent nature of a large proportion of our placements. The main opportunity for reducing our own cost base is headcount, but these reductions tend to lag the declines in revenue due to the shortening visibility. The majority of the initial reductions in our headcount occur through natural attrition, but these are treated as a component of our normal operating expenses and do not incur significant restructuring charges. However, as greater reductions become necessary, such charges may be incurred.

As economic conditions begin to improve, the confidence levels of both candidates and clients also improves and the rate at which people change jobs starts to increase. This increase in activity is serviced from the spare capacity we maintain during a downturn and therefore profits have the potential to increase rapidly. As different markets recover and grow at different rates, we invest in infrastructure and additional headcount in some markets to maintain their growth, while carrying some spare capacity in others. Where possible, we redeploy resources to match market conditions. The Group's conversion rate for the period was 13.1% (2011: 16.5%), which reflects the deterioration in market conditions seen through the first half of 2012. The movement in the conversion rates of the four regions and the levels of conversion now being achieved reflects the market conditions in those regions, the levels of investment in each region and the levels of spare capacity still available to be utilised.

Taxation and earnings per share

The charge for taxation is based on the expected effective annual tax rate of 33.5% (2011: 33.0%) on profit before taxation.

Basic and diluted earnings per share for the six months ended 30 June 2012 were 6.1p (2011: 10.0p) and 6.1p (2011: 9.7p) respectively. Before exceptional charges, basic and diluted earnings per share for the six months ended 30 June 2012 were 7.9p and 7.8p respectively.

Long-term on investment

We opened offices in Cape Town in South Africa and a further office in Macaé, Rio de Janeiro in Brazil, as well as offices in Taipei, Suzhou, Bogota and Casablanca in the first half of 2012.

Cash flow

The Group started the year with net cash of £58.2m. In the first half we generated £27.5m from operations after funding an increase in working capital of £14.0m. Tax paid was £17.5m and net capital expenditure was £9.6m, with net interest received of £0.1m. During the first half, £9.4m was spent repurchasing shares into the employee benefit trust to hedge exposures under share plan awards, £5.5m was received from the exercise of share options and dividends of £20.8m were paid. After adverse currency movements of £1.5m, the Group had net cash of £32.4m at 30 June 2012.

Dividends and share repurchases

It is the Board's intention to pay dividends at a level that it believes is sustainable throughout economic cycles and to continue to use share repurchases to return surplus cash to shareholders. The Board remains confident of the longer term prospects and has therefore decided to maintain the interim dividend at 3.25p (2011: 3.25p) per share. The interim dividend will be paid on 5 October 2012 to shareholders on the register at 7 September 2012.

In the first half, the Group's employee benefit trust purchased approximately 2.6m shares for £9.4m at an average price of £3.63 to satisfy employee share plan awards. No shares were repurchased and cancelled during the first half.

Long-term on investment Group quarterly gross profit trend

Current trading and outlook

Despite market conditions deteriorating during the second quarter of 2012, the Group delivered broadly flat gross profit (-0.5%) compared to the first half of 2011 and an increase of 2.2% at constant rates of exchange. The second quarter also saw a 4% increase in gross profit compared to the first quarter, against a tough comparator, with Q2 2011 having been our second highest quarter on record, with a growth rate of 32%.

Over the last 10 years we have continued to diversify and hence have altered significantly the composition of the Group, entirely through organic investment and development, with over three quarters of the Group's gross profits now generated from outside the UK. Our Latin America and Asia businesses combined now represent over 21% of the Group's gross profit, with 36 offices across 10 countries and almost 1,200 staff.

We continue to invest in geographic diversification where there is long-term growth potential. We opened offices in Cape Town, in South Africa and a further office in Macaé, Rio de Janeiro, in Brazil, adding to the offices in Taipei, Suzhou, Bogota, and Casablanca opened during the first quarter.

Our headcount has adjusted to reflect market conditions. It increased in areas where we have growth, principally Asia and our newer businesses and reduced in other areas, largely from natural attrition. This resulted in headcount remaining broadly flat through the first half.

It is a clear priority that we continue to manage the cost base to reflect market conditions, whilst investing to create a platform for greater growth when markets improve. We believe strongly that we have the balance right. The business remains profitable throughout all our major markets, apart from new start-ups.

We anticipate a challenging second half as we enter the seasonally quieter summer period in both Continental Europe and the UK. This is set against tough comparables and an ongoing backdrop of economic uncertainty. The Group is financially strong, with net cash of £32.4m. We remain well-placed to take advantage of any recovery in the markets in which we operate. At this time we expect our full year operating profit from trading activities to be broadly in line with current market estimates.

Key Performance Indicators ("KPIs")

Financial and non-financial key performance indicators (KPIs) used by the Board to monitor progress are listed in the table below. The source of data and calculation methods year-on-year are on a consistent basis.

KPI	H1 2012	H1 2011	Definition, method of calculation and analysis
Gross margin	54.5%	54.8%	Gross profit as a percentage of revenue. Gross margin has remained broadly flat, with any reduction due largely as a result of the mix of permanent and temporary placements. In tougher trading conditions, there tends to be a swing to lower margin temporary placements. Source: Condensed consolidated income statement in the financial statements.
Fee earner : support staff ratio	71:29	72:28	Represents the balance between operational and non-operational staff. The balance in the period reflects the relative increase in support staff in new infrastructure over the increase in the number of fee earners. Source: Internal data.
Productivity (gross profit per fee earner)	£72.5k	£76.9k	Represents productivity of fee earners and is calculated by dividing the gross profit for the period by the average number of fee earners and directors. The higher the number, the higher their productivity. Productivity is a function of the numbers and experience of fee earners, the impact of pricing and the general conditions of the recruitment market. The decrease in productivity this period is as a result of the increase in fee earners compared to this time last year and a general worsening of market conditions. Source: Internal data.
Conversion (before exceptional items)	13.1%	16.5%	Operating profit as a percentage of gross profit showing the Group's effectiveness at controlling the costs and expenses associated with its normal business operations and the level of investment for future growth. Conversion has declined compared to last year, reflecting the impact of the economic uncertainty on demand for the Group's services, lower productivity and the investment in maintaining market presence and carrying spare capacity. Source: Condensed consolidated income statement in the financial statements.
Debtor days (30 June)	49	52	Represents the length of time before the Group receives payments from its debtors. Calculated by comparing how many days' billings it takes to cover the debtor balance. The decrease in the period reflects an increased focus on cash collections and a greater proportion of temporary business, with the average debtor days being lower for the temporary business compared to the permanent business. Source: Internal data.

The movements in KPIs are in line with expectations.

Principal risks and uncertainties

The management of the business and the execution of the Company's strategy are subject to a number of risks. The following section comprises a summary of what the Group believes are the main risks that could potentially impact the Group's operating and financial performance.

People

The resignation of key individuals and the inability to recruit talented people with the right skill-sets could affect adversely the Group's results. This is further compounded by the Group's organic growth strategy and its policy of not externally hiring senior operational positions. Mitigation of this risk is achieved by succession planning, training of staff, competitive pay structures and share plans linked to the Group's results and career progression.

Macroeconomic environment

Recruitment activity is largely driven by economic cycles and the levels of business confidence. The Board aims to reduce the Group's cyclical risk by diversifying the business by expanding geographically, increasing the number of disciplines, building part-qualified and clerical businesses and continuing to build the temporary business. A substantial portion of the Group's gross profit arises from fees that are contingent upon the successful placement of a candidate in a position.

If a client cancels an assignment at any stage in the process, the Group receives no remuneration. As a consequence the Group's visibility of gross profits is generally quite short and reduces further during periods of economic downturn.

Competition

The degree of competition varies in each of the Group's main regions. In the UK, Australia and North America, the recruitment market is well developed, highly competitive and fragmented. The characteristics of a developed market are greater competition for clients and candidates, as well as pricing pressure. In the majority of EMEA, Latin America and Asia, the recruitment market is generally less developed, with a large proportion of all recruitment being carried out by companies' internal resources, rather than through recruitment specialists. This is changing due to changes in legislation, increasing job mobility and the difficulty internal resources face in sourcing suitably qualified candidates and managing increasing levels of compliance. If the Group does not continue to compete in its markets effectively, by hiring new staff, opening

Effective use of cash

The chart left shows how the Group has managed its cash resources in the years since flotation. The cash paid in dividends has increased or been maintained, while maintaining a net cash position within a relatively small range. During 2001 to 2007, surplus cash was used to repurchase and cancel shares.

As the downturn impacted the Group's trading during the second half of 2008, the Group stopped its share repurchase programme and the cash generated was retained on the balance sheet. This can be seen in the sharp increase in net cash during 2008 and 2009. As trading conditions improved during 2010, the Group resumed its share repurchases both into the employee benefit trust to satisfy current and future share plan obligations and for cancellation, and consequently the net cash reduced.

In 2011, the Group reduced its net cash position by the repurchase and cancellation of shares. In H1 2012, the Group received cash from the exercise of options granted in 2009 that have been hedged in the employee benefit trust and also reinvested in shares to hedge the 2012 awards.

and expanding offices and continuing the discipline roll-outs, there is a risk that competitors may beat us to key strategic opportunities, which may result in lost business and a reduction in market share. This risk is mitigated by meetings of the Board, Executive Board and Regional and Country Management Boards where Group strategy is continually reviewed and decisions made over the allocation of the Group's resources, principally people.

Technology

The Group is reliant on technology systems to provide services to clients and candidates. These systems are dependent on a number of important suppliers that provide the technology infrastructure and disaster recovery solutions. The performance of these suppliers is monitored to ensure business critical services are available and maintained as far as practically possible. Due to the rapid advancement of technology, there is a risk that systems could become outdated with the potential to affect efficiency and have an impact on revenue and client service. This risk is mitigated by regular reviews of the Group's technology strategy to ensure that it supports the overall Group strategy.

Legal

The Group operates in a large number of jurisdictions that have varying legal and compliance regulations. The Group takes its responsibilities seriously and ensures that its policies, systems and procedures are updated continually to reflect best practice and to comply with the legal requirements in all the markets in which it operates. In order to reduce the legal and compliance risks, fee earners and support staff receive regular training and updates of changes in legal and compliance requirements.

Financial

The Group has a risk management process to assess risks and places significant emphasis on maintaining adequate financial and management controls. The risk management process is viewed as a dynamic part of operations and is assessed globally on an annual basis. The Group has developed a framework to manage risk and respond to the global financial crisis, with emphasis upon liquidity as well as credit exposure, management of currency risk and business and operational continuity.

Treasury management, bank facilities and currency risk

It is the Directors' intention to continue to finance the activities and development of the Group from retained earnings and to operate the Group's business while maintaining a strong balance sheet position. In a generally benign economic environment this equates to maintaining the Group's net cash/debt position within a relatively narrow band, with cash generated in excess of operational and investment requirements being returned to shareholders. In a period of economic uncertainty, a more cautious funding position will be adopted, with the Group being managed in a net cash position.

Cash surpluses are 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 has a multi-currency notional cash pool between the Eurozone subsidiaries and the UK-based Group Treasury subsidiary. The structure facilitates interest and balance compensation of cash and bank overdrafts.

In June 2012, the Group extended its £50m three-year multi-currency committed revolving credit facility with Deutsche Bank for a further three months to facilitate a smooth transition of funding arrangements. In July 2012 the Group entered into an Invoice Financing arrangement with HSBC Bank, the availability of which is limited to the level of UK trade receivables available for refinancing. These new bank facilities are provided subject to conventional banking covenants.

The main operational currencies of the Group are Sterling, Euro, Australian Dollar and Brazilian Real. The Group does not have material transactional currency exposures, nor is there a material exposure to foreign denominated monetary assets and liabilities. The Group is exposed to foreign currency translation differences in accounting for its overseas operations. Our policy is not to hedge this exposure.

In certain cases, where the Group gives or receives short-term loans to and from other Group companies with different reporting currencies, it may use short-dated foreign exchange swap derivative financial instruments to manage the currency and interest rate exposure that arises on these loans. It is the Group's policy not to seek to designate these derivatives as hedges.

Going concern

The Board has undertaken a recent and thorough review of the Group's forecasts and associated risks and sensitivities. Despite the significant uncertainty in the economy and its inherent risk and impact on the business, the Board has concluded, given the level of cash in the business and Group borrowing facilities, the geographical and discipline diversification, limited concentration risk, as well as the ability to manage the cost base, that the Group has adequate resources to continue in operational existence for the foreseeable future being a period of at least 12 months.

By order of the Board,

Steve Ingham Andrew Bracey 13 August 2012 13 August 2012

Chief Executive Chief Financial Officer

Independent review report

Independent review report to Michael Page International plc

Introduction

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 2012 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 related notes 1 to 14. 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.

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.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. 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 Ireland) 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.

Conclusion

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 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Ernst & Young LLP London 13 August 2012

	CONDENSED CONSOLIDATED INCOME STATEMENT	21
	CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	22
	CONDENSED CONSOLIDATED BALANCE SHEET22-23
	CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 24-25
	CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS	26
	NOTES TO THE CONDENSED SET OF INTERIM FINANCIAL STATEMENTS	27
1.	General information	27
2.	Accounting policies	27
3.	Segment reporting28-31
4.	Exceptional items	32
5.	Financial income/(expenses)	32
6.	Taxation	33
7.	Dividends	33
8.	Share-based payments	33
9.	Earnings per ordinary share	34
10.	Property, plant and equipment	34
11.	Trade and other receivables	35

Responsibility	statement	38
14.	Cash and cash equivalents	36
13.	Cash flows from operating activities	36
12.	Trade and other payables	35

Condensed consolidated income statement

Six months ended 30 June 2012

	Six months ended					Year ended
	Note	Before exceptional items 2012 £'000 Unaudited	Exceptional items (Note 4) 2012 £'000 Unaudited	After exceptional items 2012 £'000 Unaudited	30 June 2011 £'000 Unaudited	31 December 2011 £'000 Audited
Revenue	3	502,629	–	502,629	502,077	1,019,087
Cost of sales		(228,774)	–	(228,774)	(226,983)	(465,306)
Gross profit	3	273,855	–	273,855	275,094	553,781
Administrative expenses		(237,848)	(7,845)	(245,693)	(229,692)	(467,746)
Operating profit	3	36,007	(7,845)	28,162	45,402	86,035
Financial income	5	423	–	423	398	953
Financial expenses	5	(342)	–	(342)	(335)	(841)
Profit before tax	3	36,088	(7,845)	28,243	45,465	86,147
Income tax (expense)/income	6	(12,005)	2,530	(9,475)	(15,006)	(29,290)
Profit for the period		24,083	(5,315)	18,768	30,459	56,857
Attributable to:
Owners of the parent				18,768	30,459	56,857
Earnings per share
Basic earnings per share (pence)	9			6.1	10.0	18.7
Diluted earnings per share (pence)	9			6.1	9.7	18.2

The above results relate to continuing operations.

Condensed consolidated statement of comprehensive income

Six months ended 30 June 2012

		Six months ended	Year ended
	30 June 2012 £'000 Unaudited	30 June 2011 £'000 Unaudited	31 December 2011 £'000 Audited
Profit for the period	18,768	30,459	56,857
Other comprehensive (loss)/income for the period
Currency translation differences	(3,815)	3,812	(3,405)
Total comprehensive income for the period	14,953	34,271	53,452
Attributed to:
Owners of the parent	14,953	34,271	53,452

Condensed consolidated balance sheet

At 30 June 2012

	Note	30 June 2012 £'000 Unaudited	30 June 2011 £'000 Unaudited	31 December 2011 £'000 Audited
Non-current assets
Property, plant and equipment	10	31,685	32,019	33,210
Intangible assets – Goodwill and other intangible		1,950	2,087	2,005
– Computer software		42,198	30,206	37,739
Deferred tax assets		8,548	11,098	8,351
Other receivables	11	5,209	1,916	2,612
		89,590	77,326	83,917
Current assets
Trade and other receivables	11	201,558	224,984	196,455
Current tax receivable		3,981	2,810	3,980
Cash and cash equivalents	14	57,443	62,724	64,417
		262,982	290,518	264,852
Total assets	3	352,572	367,844	348,769

Condensed consolidated balance sheet (continued)

At 30 June 2012

	Note	30 June 2012 £'000 Unaudited	30 June 2011 £'000 Unaudited	31 December 2011 £'000 Audited
Current liabilities
Trade and other payables	12	(142,673)	(144,743)	(147,413)
Bank overdrafts	14	(25,031)	(39,142)	(6,249)
Current tax payable		(2,581)	(11,772)	(11,591)
		(170,285)	(195,657)	(165,253)
Net current assets		92,697	94,861	99,599
Non-current liabilities
Other payables	12	(2,622)	(2,709)	(2,685)
Deferred tax liabilities		(233)	(364)	(233)
		(2,855)	(3,073)	(2,918)
Total liabilities	3	(173,140)	(198,730)	(168,171)
Net assets		179,432	169,114	180,598
Capital and reserves
Called-up share capital		3,173	3,164	3,167
Share premium		58,470	56,638	57,215
Capital redemption reserve		932	932	932
Reserve for shares held in the employee benefit trust		(57,277)	(66,186)	(65,652)
Currency translation reserve		26,471	37,503	30,286
Retained earnings		147,663	137,063	154,650
Total equity		179,432	169,114	180,598

Condensed consolidated statement of changes in equity

	Called-up share capital £'000	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
Balance at 1 January 2011	3,216	55,607	875	(75,361)	33,691	159,406	177,434
Currency translation differences	–	–	–	–	3,812	–	3,812
Net income recognised directly in equity	–	–	–	–	3,812	–	3,812
Profit for the six months ended 30 June 2011	–	–	–	–	–	30,459	30,459
Total comprehensive income for the period	–	–	–	–	3,812	30,459	34,271
Purchase of own shares for cancellation	(57)	–	57	–	–	(30,322)	(30,322)
Exercise of share plans	5	1,031	–	–	–	–	1,036
Reserve transfer when shares held in the employee benefit trust vest	–	–	–	9,175	–	(9,175)	–
Credit in respect of share schemes	–	–	–	–	–	5,991	5,991
Debit in respect of tax on share schemes	–	–	–	–	–	(473)	(473)
Dividends	–	–	–	–	–	(18,823)	(18,823)
	(52)	1,031	57	9,175	–	(52,802)	(42,591)
Balance at 30 June 2011	3,164	56,638	932	(66,186)	37,503	137,063	169,114
Currency translation differences	–	–	–	–	(7,217)	–	(7,217)
Net loss recognised directly in equity	–	–	–	–	(7,217)	–	(7,217)
Profit for the six months ended 31 December 2011	–	–	–	–	–	26,398	26,398
Total comprehensive (loss)/income for the period	–	–	–	–	(7,217)	26,398	19,181
Exercise of share plans	3	577	–	–	–	–	580
Reserve transfer when shares held in the employee benefit trust vest	–	–	–	534	–	(534)	–
Credit in respect of share schemes	–	–	–	–	–	6,712	6,712
Debit in respect of deferred tax on share schemes	–	–	–	–	–	(5,301)	(5,301)
Dividends	–	–	–	–	–	(9,688)	(9,688)
	3	577	–	534	–	(8,811)	(7,697)
Balance at 31 December 2011 and 1 January 2012	3,167	57,215	932	(65,652)	30,286	154,650	180,598

Condensed consolidated statement of changes in equity (continued)

	Called-up share capital £'000	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
Balance at 1 January 2012	3,167	57,215	932	(65,652)	30,286	154,650	180,598
Currency translation differences	–	–	–	–	(3,815)	–	(3,815)
Net loss recognised directly in equity	–	–	–	–	(3,815)	–	(3,815)
Profit for the six months ended 30 June 2012	–	–	–	–	–	18,768	18,768
Total comprehensive (loss)/income for the period	–	–	–	–	(3,815)	18,768	14,953
Purchase of shares held in employee benefit trust	–	–	–	(9,388)	–	–	(9,388)
Exercise of share plans	6	1,255	–	–	–	4,271	5,532
Reserve transfer when shares held in the employee benefit trust vest	–	–	–	17,763	–	(17,763)	–
Credit in respect of share schemes	–	–	–	–	–	7,461	7,461
Credit in respect of tax on share schemes	–	–	–	–	–	1,054	1,054
Dividends	–	–	–	–	–	(20,778)	(20,778)
	6	1,255	–	8,375	–	(25,755)	(16,119)
Balance at 30 June 2012	3,173	58,470	932	(57,277)	26,471	147,663	179,432

Condensed consolidated statement of cash flows

Six months ended 30 June 2012

		Six months ended
	Note	30 June 2012 £'000 Unaudited	30 June 2011 £'000 Unaudited	31 December 2011 £'000 Audited
Cash generated from underlying operations	13	35,320	21,789	103,325
Exceptional items	4	(7,845)	–	–
Cash generated from operations		27,475	21,789	103,325
Income tax paid		(17,532)	(19,052)	(37,109)
Net cash from operating activities		9,943	2,737	66,216
Cash flows from investing activities
Purchases of property, plant and equipment		(4,627)	(7,980)	(16,319)
Purchases of intangible assets		(5,013)	(5,156)	(13,325)
Proceeds from the sale of property, plant and equipment, and computer software		35	173	237
Interest received		423	398	953
Net cash used in investing activities		(9,182)	(12,565)	(28,454)
Cash flows from financing activities
Dividends paid		(20,778)	(18,823)	(28,511)
Interest paid		(344)	(281)	(807)
Issue of own shares for the exercise of options		5,532	1,036	1,616
Purchase of own shares for cancellation		–	(30,322)	(30,322)
Purchase of shares into the employee benefit trust		(9,388)	–	–
Net cash used in financing activities		(24,978)	(48,390)	(58,024)
Net decrease in cash and cash equivalents		(24,217)	(58,218)	(20,262)
Cash and cash equivalents at the beginning of the period		58,168	80,531	80,531
Exchange (loss)/gain on cash and cash equivalents		(1,539)	1,269	(2,101)
Cash and cash equivalents at the end of the period	14	32,412	23,582	58,168

Notes to the condensed set of interim financial statements

For the period ended 30 June 2012

1. General information

The information for the year ended 31 December 2011 does not constitute statutory accounts as defined in section 434 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.

2.Accounting policies

Basis of preparation

The unaudited interim condensed consolidated financial statements for the six months ended 30 June 2012 have been prepared in accordance with IAS 34 'Interim financial reporting' and with the Disclosure and Transparency Rules of the Financial Services 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 2011, were approved by the directors on 6 March 2012. The interim condensed consolidated financial statements should be read in conjunction with the Annual Report and Accounts for the year ended 31 December 2011, which have been prepared in accordance with International Financial Reporting Standards ('IFRSs') as adopted by the European Union.

Going concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the interim management report. The interim management report also includes a summary of the Group's financial position, its cash flows and its borrowing facilities.

The directors believe the Group is well placed to manage its business risks successfully, despite the current uncertain economic outlook. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its current committed facilities.

After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the half-yearly financial report.

New accounting standards, interpretations and amendments

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2011. The Group has applied the following policy in respect of exceptional items where the Group considers exceptional items to be one-off or material in nature that should be brought to the reader's attention in understanding the Group's financial performance. The following amendments to IFRSs did not have any impact on the accounting policies, financial position or performance of the Group:

IAS 12 – Deferred Tax: Recovery of Underlying Assets (Amendment)

This amendment to IAS 12 includes a rebuttable presumption that the carrying amount of investment property measured using the fair value model in IAS 40 will be recovered through sale and, accordingly, that any related deferred tax should be measured on a sale basis. The presumption is rebutted if the investment property is depreciable and it is held within a business model whose objective is to consume substantially all of the economic benefits in the investment property over time, rather than through sale. Specifically, IAS 12 will require that deferred tax arising from a non-depreciable asset measured using the revaluation model in IAS 16 should always reflect the tax consequences of recovering the carrying amount of the underlying asset through sale Effective implementation date is for annual periods beginning on or after 1 January 2012.

IFRS 7 – Disclosures – Transfers of financial assets (Amendment)

The IASB issued an amendment to IFRS 7 that enhances disclosures for financial assets. These disclosures relate to assets transferred (as defined under IAS 39). If the assets transferred are not derecognised entirely in the financial statements, an entity has to disclose information that enables users of financial statements to understand the relationship between those assets which are not derecognised and their associated liabilities. If those assets are derecognised entirely, but the entity retains a continuing involvement, disclosures have to be provided that enable users of financial statements to evaluate the nature of, and risks associated with, the entity's continuing involvement in those derecognised assets. Effective implementation date is for annual periods beginning on or after 1 July 2011 with no comparative requirements.

IFRS 1 – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendment)

When an entity's date of transition to IFRS is on or after the functional currency normalisation date, the entity may elect to measure all assets and liabilities held before the functional currency normalisation date, at fair value on the date of transition to IFRS. This fair value may be used as the deemed cost of those assets and liabilities in the opening IFRS statement of financial position. However, this exemption may only be applied to assets and liabilities that were subject to severe hyperinflation. Effective implementation date is for annual periods beginning on or after 1 July 2011 with early adoption permitted.

The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

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 cost. This is the measure reported to the Group's Chief Executive for the purpose of resource allocation and assessment of segment performance.

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

		Revenue
				Year ended
	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
	211,458	209,548	421,240	117,934	120,268	239,581
	146,012	163,047	324,863	61,687	66,010	129,991
Australia and New Zealand	59,711	49,120	106,196	26,343	23,806	50,172
Other	34,888	27,620	59,862	30,508	24,747	53,179
Total	94,599	76,740	166,058	56,851	48,553	103,351
	50,560	52,742	106,926	37,383	40,263	80,858
	502,629	502,077	1,019,087	273,855	275,094	553,781
			Six months ended	Year ended		Gross Profit Six months ended

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

		Operating Profit
			Six months ended
		Before exceptional items 2012 £'000	Exceptional items (note 4) 2012 £'000	After exceptional items 2012 £'000	30 June 2011 £'000	Year ended 31 December 2011 £'000
EMEA		13,385	(7,333)	6,052	16,958	31,676
United Kingdom		8,614	(512)	8,102	10,407	18,317
Asia Pacific	Australia and New Zealand	7,679	–	7,679	5,026	11,453
	Other	6,131	–	6,131	7,213	14,702
	Total	13,810	–	13,810	12,239	26,155
Americas		198	–	198	5,798	9,887
Operating profit		36,007	(7,845)	28,162	45,402	86,035
Financial income		81	–	81	63	112
Profit before tax		36,088	(7,845)	28,243	45,465	86,147

The above analysis by destination is not materially different to the analysis by origin.

The analysis below is of the carrying amount of reportable segment assets and 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 intangible.

(b) Segment assets, liabilities and non-current assets by reportable segment

		Total Assets			Total Liabilities
			Six months ended	Year ended		Six months ended	Year ended
		30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
EMEA		128,955	149,074	131,772	71,666	69,902	71,687
United Kingdom		109,454	116,813	106,455	64,518	88,859	51,100
Asia Pacific	Australia and New Zealand	29,313	26,618	28,323	14,768	11,818	11,855
	Other	38,572	28,810	37,299	8,660	6,054	9,411
	Total	67,885	55,428	65,622	23,428	17,872	21,266
Americas		42,297	43,719	40,940	10,947	10,325	12,527
Segment assets/liabilities		348,591	365,034	344,789	170,559	186,958	156,580
Income tax		3,981	2,810	3,980	2,581	11,772	11,591
		352,572	367,844	348,769	173,140	198,730	168,171
			Property, Plant & Equipment			Intangible Assets
			Six months ended	Year ended		Six months ended	Year ended
		30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
EMEA		9,678	10,762	10,396	600	665	669
United Kingdom		8,904	9,835	9,680	42,760	30,652	38,187
Asia Pacific	Australia and New Zealand	1,639	1,696	1,594	129	160	168
	Other	2,814	1,794	2,648	66	246	105
	Total	4,453	3,490	4,242	195	406	273
Americas		8,650	7,932	8,892	593	570	615
		31,685	32,019	33,210	44,148	32,293	39,744

The below analyses in notes (c) revenue and gross profit by discipline (being the professions of candidates placed) and (d) revenue and gross profit generated from permanent and temporary placements have been included as additional disclosure over and above the requirements of IFRS 8 "Operating Segments".

(c) Revenue and gross profit by discipline

	Revenue				Gross Profit
		Six months ended	Year ended	Six months ended		Year ended
	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
Finance and Accounting	237,895	261,023	521,380	114,661	123,824	248,028
Legal, Technology, HR, Secretarial and Other	109,551	98,560	205,184	55,076	51,794	105,575
Engineering, Property & Construction, Procurement & Supply Chain	90,703	77,113	164,656	53,905	48,667	101,291
Marketing, Sales and Retail	64,480	65,381	127,867	50,213	50,809	98,887
	502,629	502,077	1,019,087	273,855	275,094	553,781

(d) Revenue and gross profit generated from permanent and temporary placements

		Revenue			Gross Profit
		Six months ended	Year ended		Six months ended
	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
Permanent	222,601	227,160	453,105	215,687	219,429	438,382
Temporary	280,028	274,917	565,982	58,168	55,665	115,399
	502,629	502,077	1,019,087	273,855	275,094	553,781

4. Exceptional items

The Group has taken a restructuring cost in the first half of 2012, relating to changes in management structure where an entire layer of management has been removed. The costs represent direct expenditure necessarily incurred by the restructuring. The expenditure does not include any ongoing costs of the Group.

5. Financial income/(expenses)

	Six months ended		Year ended
	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
Financial income
Bank interest receivable	423	398	953
Financial expenses
Bank interest payable	(342)	(335)	(841)

6. Taxation

Taxation for the six month period is charged at 33.5% (six months ended 30 June 2011: 33.0%; year ended 31 December 2011: 34.0%), representing the best estimate of the average annual effective tax rate expected for the full year, applied to the pre-tax income of the six month period.

7. Dividends

	Six months ended		Year ended
	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended 31 December 2011 of 6.75p per ordinary share (2010: 6.12p)	20,778	18,823	18,739
Interim dividend for the period ended 30 June 2011 of 3.25p per ordinary share (2010: 2.88p)	–	–	9,772
	20,778	18,823	28,511
Amounts proposed as distributions to equity holders in the period:
Proposed interim dividend for the period ended 30 June 2012 of 3.25p per ordinary share (2011: 3.25p)	9,924	9,846	–
Proposed final dividend for the year ended 31 December 2011 of 6.75p per ordinary share (2010: 6.12p)	–	–	20,458

The proposed interim dividend had not been approved by the Board at 30 June 2012 and therefore has not been included as a liability. The comparative interim dividend at 30 June 2011 was also not recognised as a liability in the prior period.

The proposed interim dividend of 3.25 pence (2011: 3.25 pence) per ordinary share will be paid on 5 October 2012 to shareholders on the register at the close of business on 7 September 2012.

8. Share-based payments

In accordance with IFRS 2 "Share-based Payment", a charge of £8.4m has been recognised for share options and other share-based payment arrangements (including social charges) (30 June 2011: £7.0m, 31 December 2011: £13.0m).

9. Earnings per ordinary share

The calculation of the basic and diluted earnings per share is based on the following data:

	Six months ended		Year ended
	30 June 2012	30 June 2011	31 December 2011
Earnings
Earnings for basic and diluted earnings per share (£'000)	18,768	30,459	56,857
Exceptional items (£'000) (note 4)	5,315	–	–
Earnings for basic and diluted earnings per share before exceptional items (£'000)	24,083	30,459	56,857
Number of shares
Weighted average number of shares used for basic earnings per share ('000)	305,602	305,807	304,458
Dilution effect of share plans ('000)	4,271	9,653	7,941
Diluted weighted average number of shares used for diluted earnings per share ('000)	309,873	315,460	312,399
Basic earnings per share (pence)	6.1	10.0	18.7
Diluted earnings per share (pence)	6.1	9.7	18.2
Basic earnings per share before exceptional items (pence)	7.9	10.0	18.7
Diluted earnings per share before exceptional items (pence)	7.8	9.7	18.2

The above results all relate to continuing operations.

10. Property, plant and equipment

Acquisitions and disposals

During the period ended 30 June 2012 the Group acquired property, plant and equipment with a cost of £4.6m (30 June 2011: £8.0m, 31 December 2011: £16.3m)

Property, plant and equipment with a carrying amount of £0.1m were disposed of during the period ended 30 June 2012 (30 June 2011: £0.2m, 31 December 2011: £0.2m), resulting in a loss on disposal of £5k (30 June 2011: profit of £7k, 31 December 2011: profit of £22k).

11. Trade and other receivables

		Six months ended
	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
Current
Trade receivables	159,161	180,736	156,979
Other receivables	5,112	5,894	4,566
Prepayments and accrued income	37,285	38,354	34,910
	201,558	224,984	196,455
Non-current
Prepayments	5,209	1,916	2,612

12. Trade and other payables

		Six months ended
	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
Current
Trade payables	5,536	6,319	8,664
Other tax and social security	42,299	50,508	44,415
Other payables	22,777	23,238	22,612
Accruals	71,179	62,363	71,115
Deferred income	882	2,315	607
	142,673	144,743	147,413
Non-current
Deferred income	2,569	2,091	2,515
Other tax and social security	53	618	170
	2,622	2,709	2,685

13. Cash flows from operating activities

		Six months ended
	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
Profit before tax	28,243	45,465	86,147
Exceptional items (note 4)	7,845	–	–
Profit before tax and exceptional items	36,088	45,465	86,147
Depreciation and amortisation charges	5,830	5,522	11,657
Loss/(profit) on sale of property, plant & equipment, and computer software	5	(7)	(22)
Share scheme charges	7,461	5,991	12,732
Net finance income	(81)	(63)	(112)
Operating cash flow before changes in working capital and exceptional items	49,303	56,908	110,402
Increase in receivables	(11,750)	(51,718)	(32,688)
(Decrease)/increase in payables	(2,233)	16,599	25,611
Cash generated from underlying operations	35,320	21,789	103,325

14. Cash and cash equivalents

	Six months ended	Year ended
	30 June 2012 £'000	30 June 2011 £'000	31 December 2011 £'000
Cash at bank and in hand	47,907	56,156	57,758
Short-term deposits	9,536	6,568	6,659
Cash and cash equivalents	57,443	62,724	64,417
Bank overdrafts	(25,031)	(39,142)	(6,249)
Cash and cash equivalents in the statement of cash flows	32,412	23,582	58,168

R esponsibi lity State m e n

t

Responsibility statement

The Directors confirm that to the best of their knowledge:-

• a) the condensed set of interim financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting';
• b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
• c) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

On behalf of the Board

13 August 2012 13 August 2012

Steve Ingham Andrew Bracey Chief Executive Chief Financial Officer

Notes

Notes