Empresaria : Results for the year ended 31st December 2019

17 March 2020 by Erin Smyth

Empresaria Group plc
("Empresaria" or the "Group")

Growth in net fee income in a challenging economic environment. Operational improvements building a strong platform for future growth.

Empresaria, the global specialist staffing group, reports its final results for the year ended 31 December 2019.

Financial Highlights

​	2019	2018	% change	% change (constant currency) *2
Revenue	£358.0m	£366.8m	-2%	-2%
Net fee income	£74.5m	£72.3m	+3%	+2%
Operating profit	£4.0m	£10.3m	-61%	-61%
Adjusted operating profit *1	£10.4m	£12.3m	-15%	-16%
Profit before tax	£2.9m	£9.4m	-69%	-69%
Adjusted profit before tax *1	£9.3m	£11.4m	-18%	-19%
Diluted (loss)/earnings per share	(1.6)p	9.1p	-118%	​
Ajusted diluted earnings per share *1	8.5p	12.1p	-30%	​

• Diversified business delivering growth in net fee income

  • +3%, +2% in constant currency

  • 37% growth in Offshore Recruitment Services sector

• Decline in profits reflecting a challenging economic environment in certain key markets

  • Impact from engineering business and Brexit uncertainty in the UK, alongside the weakening of the German automotive sector

• Strong growth in other markets

  • Offshore Recruitment Services adjusted operating profit up 88%

• Stronger Together initiative with a focus on organic growth and operational improvement

  • Aligned business around six core sectors to improve collaboration and leverage synergies

  • Increased support from central team

  • Investment in common technology (e.g. Bullhorn)

  • Evolving operating models in certain brands to enable them to scale more effectively

  • Creating a performance based culture

• Proposed dividend of 2.2p per share, an increase of 10% in line with progressive dividend policy

• Building a strong foundation that will drive future growth and profits

*1 - Adjusted to exclude amortisation of intangible assets identified in business combinations, impairment of goodwill, exceptional items, fair value charges on acquisition of non-controlling shares and, in the case of earnings, any related tax.

*2 - The constant currency movement is calculated by translating the 2018 results at the 2019 exchange rates.

An interview with management covering the results is available here.

Chief Executive Officer, Rhona Driggs, commented:

"We are pleased to be reporting net fee income growth in a challenging economic environment. These challenges have impacted the bottom line, particularly in our UK engineering business where we have taken the decision to close a substantial part of the operation.

Notwithstanding the wider market challenges, we have made great progress in 2019 in implementing operational improvements that will help us build a strong platform for future growth. These are spearheaded by our Stronger Together initiative, which aligns our business around core sectors, enabling us to share common experiences and leverage synergies.

We are focused on driving organic growth and have a series of operational improvements and investments under way to deliver this, some of which are already bearing fruit. Our central team is delivering increased levels of support to ensure our businesses benefit from being part of a global group. Additionally, we are investing in technology, including working with Bullhorn to upgrade our front office system, to ensure that we remain competitive in connecting talent with jobs. Our Offshore Recruitment Services sector, which delivered an 88% increase in adjusted profit, will also be a key driver of growth across the Group as we look to make better use of this internal expertise.

While we are cognisant of the ongoing economic and market headwinds, particularly the outbreak of coronavirus, we are confident that the positive changes we have made in 2019 and the further changes and investments planned in 2020 leave us well positioned for the longer term."

- Ends -

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Enquiries:

Empresaria Group plc
Rhona Driggs, Chief Executive Officer
Tim Anderson, Chief Financial Officer
via Alma PR

N+1 Singer (Nominated Adviser and Broker)
Shaun Dobson / James Moat
020 7614 5900

Alma PR (Financial PR)
Rebecca Sanders-Hewett, Sam Modlin, David Ison, Hilary Buchanan
020 3405 0205
[e-mail]

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Notes for editors:

• Empresaria Group plc is a global specialist staffing group offering temporary and contract recruitment, permanent recruitment and offshore recruitment services across 6 sectors: Professional, IT, Healthcare, Property, Construction and Engineering, Commercial and Offshore Recruitment Services.

• Empresaria operates in 20 countries across the world including the 4 largest staffing markets of the US, Japan, UK and Germany along with a strong presence elsewhere in Asia Pacific and Latin America.

• Empresaria is listed on AIM under ticker EMR. For more information: empresaria.com

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For the full announcement click here.