Empresaria Group PLC
20 April 2007

Empresaria Group plc

Full Year Results for the Year Ended 31 December 2006

Adjusted profit before tax up 30% as group sees further rapid expansion

April 20, 2007: The AIM-quoted staffing and recruitment group Empresaria today
announced sharp increases in sales and profits for the year to 31 December 2006,
and said it is now positioned to continue growing its operations rapidly across
the globe.

Adjusted profit before tax increased 30% to £2.89 million on sales up 40% to
£75.5 million.

The group said the figures reflected solid investments during the year in
businesses acquired in Asia, Continental Europe and the UK.

Empresaria's strategy is to achieve balanced growth by developing its existing
businesses, investing in start-up businesses and making selective acquisitions.
To help smooth out cyclical downturns the group aims to maintain a balance
between temporary and permanent recruitment across a range of specialist

International net fee income rose over eight fold to £4.2 million from £0.5
million in 2005, representing 19% of the group total - up from only 3% last

Empresaria is now positioned in 14 countries across Europe, Asia, Australia and
North America.

Empresaria Chief Executive Miles Hunt said the group has made significant
internal investments to accelerate future growth, and added, 'In terms of
strategy and structure, several important steps have been taken which should
allow Empresaria to increase its scale of operations at a rapid pace.'

These include this month's earlier announcement of an agreement to acquire 60%
of the German recruitment company headwayholding GmbH for £9.9 million,
following a £12 million fundraising that included £3.6 million invested by group
Chairman Tony Martin and Chief Executive Miles Hunt.

Empresaria was last month named International Business of the Year in the 2007
Fast Growth Business Awards.

For further information contact:

Miles Hunt, Chief Executive, Empresaria Group plc: 01293 649 903

Nick Hall-Palmer, Group Finance Director, Empresaria Group plc: 01293 649 906

Allan Piper, First City Financial Public Relations: 020 7242 2666

James Wellesley Wesley, Bridgewell Limited: 020 7003 3000

Overview of Performance for 2006

£ 000's 2006 2005 2004 2003 2002

Revenue 75,459 54,060 45,430 29,367 22,902
Gross Profit 21,840 15,393 13,141 10,589 8,603
Total Operating Profit 2,743 1,914 1,067 817 709
Adjusted Operating Profit * 3,505 2,532 1,715 1,234 927
Adjusted Profit Before Tax * 2,894 2,225 1,390 1,113 830
Basic Earnings per share (pence) 4.21 3.12 1.38 1.85 0.4
Adjusted Earnings per share (pence) * 7.2 5.7 4.2 3.9 2.8
Dividend Proposed per share (pence) 0.50 0.45 0.40 0.38 0.25


Revenues of £75.5m (2005: £54.1m) up 40%.
Gross profit of £21.8m (2005: £15.4m) up 42%
Profit before tax of £2.13m (2005: £1.61m) up 33%
Adjusted profit before tax* of £2.89m (2005: £2.23m) up 30%
Earnings per share of 4.21p (2005: 3.12p) up 35%
Adjusted earnings per share* 7.2p (2005 : 5.7p) up 26%
Operating cash inflow £5.2m (2005: £2.5m) up 108%
Group cash at bank at year end £3.3m (2005: £2.4m)
Group net debt at year end £1.3m (2005: £2.4m)
Proposed dividend of 0.50p (2005: 0.45p)

* Figures based on underlying profits excluding goodwill amortisation and
exceptional cost. See Note 7 for reconciliation. In 2006 there were no
exceptional costs.

Operational highlights

Strong organic growth from existing businesses

Entry into new markets with investment in India, Indonesia, Malaysia, Poland,
Czech Republic and Slovakia

Asian operations exceeding expectations

Management team strengthened to accelerate overseas expansion

German acquisition agreed, subject to shareholders' approval

Good start to 2007

Chairman's statement

Overview 2006

The year 2006 has been one of strong performance with rapid progress being made
in creating a balanced international specialist staffing group. Empresaria is a
leading example of a new generation of international staffing company seeking to
develop a multi-specialist sector, multi-geographical presence without the
burden of a significant trading presence in the traditional clerical and
industrial staffing markets.

It has now been just over two years since Empresaria began its transformation
from a UK focused organisation to a truly international operation. Since moving
from OFEX/Plus Markets to AiM in November 2004 the company has invested in 22
new companies in 13 different countries, targeting economies and staffing
markets that the Board believes have high growth potential. Empresaria is now
represented in India and China, in Japan and countries across South East Asia,
in Poland and other Eastern European countries. The positive impact of this
change in strategic focus is now beginning to be reflected in the Group's
financial performance.

Financial performance

Revenues for the year ended 31 December 2006 increased by 40% to £75.5m and net
fee income (gross profit) increased by 42% to £21.8m. Profit before tax (before
goodwill amortisation) increased to £2.89m from £2.23m, a rise of 30%. For the
first time we experienced the impact of the increasing contribution of
international companies to Group net fee income. In 2005, contribution of non-UK
companies was 3%. In 2006 it rose to 19%. This figure would have been higher but
for the strong growth experienced in the UK and the excellent financial
performance of a number of the Group's UK companies.

Group strategy

Empresaria's strategy is to develop an international specialist staffing group,
balanced in terms of sector, geographic and operational coverage, as well as
organic and acquisitive growth.

Underpinning this strategy is the philosophy of management equity. Since the
Group started operations ten years ago both strategy and structure have been
shaped by the importance attached to aligning the interests of shareholders and
management teams through sharing risk and reward through equity participation.
There are now over 34 companies within the Group and each one, in each country,
is characterised by management retaining a shared interest in long term success
through a meaningful equity stake.

The Group structure reflects this philosophy. Operations are decentralised with
day to day management autonomy remaining local. A small central operation
focuses on financial planning and control, group development and administration.
For individual management teams the arrangements offer a combination of support,
responsibility and independence. For the Group, the structure offers the
benefits of scale. Central costs will not rise over time in line with revenue
growth. As Empresaria continues to grow the conversion rate of gross margin to
net margin will improve.

Moving from strategy to objective, the Group's long term objective is to
establish a geographic footprint in diverse markets and economies. The primary
focus is on emerging markets or markets where structural changes have created
staffing industry opportunities. In emerging markets it is often the case that
there is little or no current sign of market segmentation into specialist sector
operations. Where this is the case the Group's approach is to identify a
partner that shares a common goal to develop specialist staffing niches as the
market evolves. In the longer term, Empresaria will operate in both developing
and developed economies, targeting business environments where the Empresaria
management equity philosophy, structure and operational strategy are well
received. The sequence and timing of investments across different countries will
depend to a degree on where opportunities emerge.

The rationale for developing this portfolio of operations diversified both by
geography and market sector is to maintain consistent, sustainable high growth
whilst managing risk and reducing volatility.


On 5th April Empresaria announced that it had reached agreement, subject to
shareholder approval and funding, to acquire 60% of headwayholding GmbH
(Headway). Headway is based close to Munich in Germany. Germany has one of the
most rapidly growing staffing markets in Europe moving from a â.¬5.9billion per
annum market in 2003 to a â.¬8.6 billion per annum market in 2006. The market is
characterised by recent regulatory liberalisation, a growing desire for
flexibility amongst clients and an increasing acceptance of the concept of
temporary and contract staffing which is beginning to extend to business
professionals, facilitating further specialisation of the market in the future.
The company has grown rapidly over the last two years, developing vertical
market specialisations as the staffing market has evolved. As well as operating
from 47 branches, most of which are in Germany, the company also has a presence
in both Austria and the Czech Republic. This acquisition represents a
significant accelerator in the Group's development and in Empresaria's expansion
into new emerging markets.

Empresaria's people

As ever, the success we have enjoyed this year would not have been possible
without the commitment and enthusiasm of all those working within the Group. We
would like to take this opportunity to express our appreciation for all their
hard work.

Current trading and outlook

As reported in our trading update in February, the Group has enjoyed a strong
start to the year from most markets. Investments made in start up companies
during 2006 are now beginning to bear fruit. When combined with the contribution
from more established companies operating in growing markets, this potent
mixture gives confidence for the current year.

Tony Martin

Chief Executive's review

Performance review 2006

The last two years have proven to be a transition period as the Group has
undertaken the transformation from a diversified, specialist UK staffing group
to an international one. In financial terms the Group has taken a number of
small steps in its overseas development. In terms of strategy and structure,
however, several significant steps have been taken which will allow Empresaria
to increase its scale of operations at a rapid pace as opportunities, such as
the acquisition of Headway in Germany, emerge.

One of the features of the strong financial performance in 2006 has been the
differential between profit growth and revenue growth. The explanation
highlights the core of our 'balanced growth' strategy. In the year we committed
over £1m to fund start up operations in Asia, Europe and UK, incurring start up
losses during this period. In addition the Group invested in additional
management, finance and technical skills and resource, to provide a platform for
further growth. Where we have made small acquisitions in the year we have also
made significant further internal investment in order to accelerate future
growth. In making these investments, in companies, people and infrastructure we
are seeking to develop sustainable, long term, growing revenue streams. The
consequence of investment now is expected to be strong organic growth in the


A number of regional and company performances stand out in the year. The fastest
growth is, as expected, being experienced internationally. The Asian markets
have all been buoyant. Our Japanese operations with particular contribution from
Skillhouse (IT staffing) experienced spectacular growth in revenues and gross
margins from a small base. The Monroe Consulting operations, acquired in
December 2005, saw growth in Asia both in terms of revenues but also sector
diversification with new temporary and outsourcing services added in both
Indonesia and Thailand and, following the end of the year, new operations
launched in Malaysia.

In Europe, we have used the IT staffing platform offered by GIT (a Czech company
acquired in early 2006) to launch new services in Slovakia. We have also
invested further in ITC (a Polish company acquired in October 2006) to develop a
broader regional branch presence in Poland.

While Group development focus has been concentrated on international
opportunities, it is encouraging to see the UK companies deliver such a positive
performance, particularly in the second half of the year. It is equally
encouraging that these strong results were delivered by a combination of
sectors, specifically Property Services and Construction, Financial Services and
Other Brands. Within Other Brands our creative staffing company The Recruitment
Business had a particularly successful year with contribution coming for the
first time from the Manchester office, set up in 2005, and with a successful
launch of a new office in Australia.

Group structure

The Group is managed by a small, balanced board of directors with a Chairman,
two executives and two non-executives. Historically there has been a direct line
of reporting from individual managing directors to the Chief Executive. This
flat structure is changing, reflecting the rapid development of our
international operations. The appointment of Armin Preisig as head of European
operations (a position he previously held with Vedior and Select Appointments)
has resulted in an apportionment of both management and development
responsibility across different regions. Separately, we have re-structured the
central finance function bringing in additional skills and expertise both at
central and regional level. The net result of these changes is that we have
increased our capacity to manage growth.

Market overview

The international staffing industry is expanding. Growth rates and market
opportunities differ from country to country with each country retaining
different regulatory environments, political and cultural perceptions, economic
and market characteristics. Countries such as Japan and Germany represent mature
economies but at the same time, mainly as a consequence of structural change,
represent high growth staffing markets. India combines both a high growth
economy and staffing market but, for reasons of demography, represents a
completely different challenge in fulfilling the needs of local clients. China
represents a high growth economy but with a small staffing industry still, for
the moment, held back by legislative restrictions.

A common characteristic in all our geographic markets is the positive trading
environment and the number of new opportunities at both local and at Group
level. As service industries become a bigger part of the industrial mix the
management of human resource expenses and the utilisation of a flexible work
force will take on increasing importance.

Strategic focus

Group development focus is to strengthen and grow our existing businesses and
look for new investment opportunities in growing international staffing markets.
To date our resources have been applied to the developing economies and staffing
markets of Eastern Europe and Asia. These regions remain a focus of attention
and offer a number of incremental investment opportunities. In addition, we are
researching and targeting opportunities in Western Europe and Latin America. In
each case we are seeking partners who are motivated by our management equity
philosophy, structure and the opportunity to create a new multi-specialist,
multi-national staffing group with high growth prospects.

Miles Hunt
Chief Executive

Operational review

UK operations

At Group level the development focus since moving to AiM has been on identifying
investment opportunities in staffing markets outside the UK. At the same time,
however, there is equal attention given to growing the existing operations in
the UK. UK revenues grew in the year to £66m, up 25% and net fee income of £18m
was up 19% in the period.

Construction and Property Services

This sector enjoyed high organic growth in the period with revenues increasing
36% to £37.8m and net fee income rising 36% to £5.3m on the back of strong
demand in the London and South East region. Companies in the sector continued to
invest for future expansion with FastTrack (construction trades) opening new
branches and increasing headcount, Reflex (building management services)
benefiting from both increased scale and new international candidate resourcing
capability and TeamSales (sales staff for new build housing) extending their
operations to Spain.

Other Brands

The UK 'Other Brands' sector is made up of a number of specialist brands ranging
from creative design recruitment to domestic staffing, PR and marketing and
payroll services. In each case the company or the market it services is not of
sufficient scale to warrant separate reporting. Revenues in 2006 were £10.2m, up
31% and net fee income increased 25% to £6.2m.

Financial Services

There are three UK financial services brands, two in the insurance and broader
financial services sector and one supporting investment banking and asset
management operations. Revenues in the year were £4.7m, up 31% with net fee
income up 21% to £2.9m. 2006 was a year of investment and expansion with new fee
earners being added within LMA (banking) and Mansion House (insurance).

Supply Chain

After two years of minimal growth, revenues grew in 2006 by 15%. This
encouraging progress was offset, however, by an erosion in percentage gross
margins with net fee income up only 2% to £2.2m. The sector consists of both
permanent and temporary staffing operations. Historically, these different
businesses have operated independently and separately. The decision was taken
during the year to integrate the businesses into one network. The restructuring
was concluded at the end of 2006 and will generate both cost savings as well as
enhanced business development opportunities. Early indications suggest that
these structural changes are having a positive financial impact with clients
appearing to support the integrated solution that the Group is now able to

Public Sector

Public sector recruitment in the UK was difficult in 2006. The widely publicised
reduction in government spending combined with customer buying decisions
becoming price rather than service focused, resulted in a drop in revenues to
£5.4m, down 20% with net fee income down 27% to £1.0m and a move from operating
profit to loss. The pain was felt particularly in the allied healthcare market
with the demand for physiotherapists and other second line professionals
dropping significantly. As a reaction to the changing market the decision was
taken in mid-2006 to integrate the Group's public sector operations. This
resulted in changes being made to the management and operations teams. As with
the Supply Chain sector, the early indications suggest that the structural
changes made are having a significant positive impact on financial performance.

International operations

The shift in strategic focus from UK to international development took place at
the end of 2004. In 2005 only 3% of net fee income was generated outside of the
UK. In 2006 this increased to 19%. 2006 was a year of significant steps forward
in developing a balanced international specialist staffing group. Total revenues
generated in the year from outside the UK amounted to £9.5m up from £1.2m in
2005 and net fee income reached £4.2m up from £0.5m.


The Group's first overseas investment was made at the end of 2004 in Japan in
the form of a start up operation in the IT staffing sector. A second associate
company operating in FMCG executive recruitment was added to the portfolio in
early 2006. In the second year of trading Japanese operations contributed
revenues of £5.2m and net fee income of £2.0m, excellent results from a start up
business. The Japanese economy has returned to growth. The structural changes
experienced by the Japanese staffing industry, with the liberalisation of laws
relating to temporary staffing, continue to fuel strong market growth and
provide opportunities for our existing businesses as well as for investment in
new companies.

South East Asia and Australia

The second significant international investment was made at the end of 2005
through the acquisition of a majority stake in Monroe Consulting Group. Monroe
started operations in 2001 in Sydney, focusing primarily on the IT staffing
sector. In 2004 the company embarked on an expansion programme in South East
Asia and it is this fledgling international network that offers substantial
development opportunity. The Group now operates separately capitalised companies
in Indonesia (2), Thailand (1) and Malaysia (1). These regional companies
provide a combination of executive recruitment, large scale temporary staffing
services and training solutions. In 2006 revenues from this regional group were
£3.8m contributing net fee income of £1.8m. The original Australian operations
have proven to be a challenge, necessitating management changes and investment
in new systems and infrastructure. The South East Asian operations have, in
contrast, demonstrated great potential, combining entrepreneurial management
with buoyant economies and high demand for the services offered. Early
indications in 2007 suggest that this region will be a strong contributor of
organic growth this year.


Net fee income contribution of £0.4m in the year reflects the relatively small
scale of the Group's European business but masks the progress that has been made
since applying focus to the region.

At the beginning of 2006 the Group acquired a 60% stake in GIT Consult, a Czech
based permanent IT recruitment company, representing Empresaria's first
investment in Europe. A new operation was launched in Slovakia in May, with
branches established initially in Bratislava as well as more recently in Kosice,
Slovakia's second largest city. Increased focus has been given to temporary
staffing operations with this area of the business expected to grow in 2007.

In October Empresaria acquired a 51% stake in ITC Group based in Krakow Poland.
ITC has two primary focuses of operation: temporary staffing services to the
local Polish market and work abroad services, finding and managing the logistics
of migrant workers moving from Poland to other EU countries. ITC has recently
launched a new branch office in Katowice.

Rest of the world

The Group's other operations are currently held as associate company
investments, in each case, where the local legislation allows, there is an
option to increase the Group's shareholding from a minority position to a
majority position.

The most significant investment made and the most ambitious start up operation
launched by Empresaria to-date has been in India. From a standing start in April
2006, IMS Empresaria, the Indian investment vehicle has grown a branch network
across 8 cities in India and developed services including permanent and
temporary staffing, training and Recruitment Process Outsourcing (RPO) supported
by a team of over 125 employees.

In China, Empresaria invested in Aston HR Consulting. Aston HR acquired an
interest in a small existing Shanghai based outsourced staffing company and has
gained additional licences to provide both permanent staffing and training
solutions within the Shanghai region.

Both the Indian and Chinese staffing markets are growing strongly, reflective of
the underlying economic success of both countries.

The Group's investment in the US, Gerard Stewart, is a permanent staffing
business focused on supporting the US staffing industry. The company continued
to trade profitably in the year.

Financial review

Financial performance


Group revenue rose by £21.4m (40%) in the year. Like for like sales increased by

Gross margin

The Group's gross margin increased to 29%, compared with 28% in 2005.

The Group's gross margin generated from the contract and temporary businesses
stayed at the 2005 level of 56% of total gross margin. The Group aims to
increase the level of temporary and contract revenue contribution in the future.


The Group uses adjusted profit before taxation (PBT) (as defined and calculated
on note 7) as its principal measure of operating performance. Profits before tax
are adjusted to remove the effects of goodwill amortisation and any exceptional
costs or gains incurred during the year. There were no exceptional costs in
2006. A reconciliation of the statutory and adjusted profit is provided on note

Adjusted PBT for the year - for existing and continuing operations - rose by 30%
to £2.89m (2005: £2.23m) for the whole Group.

Adjusted operating margin on revenues reduced slightly to 4.6% (2005: 4.7%).


The effective rate of corporation tax to headline profit before tax has reduced
from 45% in 2005 to 31% in 2006. The decrease is mainly due to the utilisation
of deferred tax assets.

Deferred taxation has been provided on timing differences where required by FRS

Minority interests

The Group's share of profit after tax reduced from 74% in 2005 to 66% in 2006.
This reflects varying minority interests in each of the Group's operating
companies and the effect of consolidated goodwill amortisation.

Earnings per share

Earnings per share, (EPS), adjusted for the effects of goodwill amortisation and
exceptional costs, were 7.2 pence, an increase of 26% over 2005 (5.7 pence).

In 2006, the Group's weighted average issued share capital, as used to calculate
EPS, increased by 11% as a result of shares issued to acquire new operations or
increase the Group's share in existing operations.


The Directors have recommended the payment of a dividend of 0.50 pence per share
(2005: 0.45 pence, representing an increase of 11%). If approved, the dividend
will be paid on 20th August 2007 to members registered on 20th July 2007.


Details of the main transactions are explained below:

Purchase of HEC

In April 2006, the Group acquired from SSR Personnel Services, through a special
vehicle, its operating division providing staffing services in the UK public
sector for an initial cash consideration of £350,000.

Deferred consideration of up to £400,000 may be payable in 2007, based on the
results to 31 March 2007.

Purchase of the ITC Group

In October 2006, the Group acquired 51% of the share capital of ITC PRACA Sp.
Z.o.o., ITC APT Sp. Z.o.o. and ITC CS Sp. Z.o.o. for £632,000. Deferred
consideration of up to Zl 4,344k (approx £0.8m) may be payable dependent on
financial performance of the ITC Group in 2006 and 2007.

Based in Poland, the company specialises in three areas: the sourcing of Polish
workers on behalf of overseas organisations in Western and Southern Europe,
temporary staffing focusing on the Polish local market and providing training
services to candidates.

Purchase of minority share holdings

During 2006, Empresaria acquired shares from the minority shareholders in a
number of Group companies.

The companies involved and shareholdings held after the purchase were: LMA
Recruitment Limited (80%), Healthcare First Limited (100%), TeamSales Limited
(100%), McCall Limited (62%) and Lime Street Recruitment Limited (69%).

The purchases were satisfied by the payment of £144,650 in cash and the issue of
224,316 shares at a value of £187,300.

Post year end purchases

On 5 April 2007, the Group announced its intention to purchase 60% of the share
capital of Headway for a consideration of â.¬14.6m. Headway is a provider of
temporary/ contract staffing based principally in Germany.

The acquisition is subject to shareholder approval at an Extraordinary General
Meeting to be held on 30 April 2007.

Intangible assets

The carrying value of intangible assets in the Group Balance Sheet increased by
£1.7m, from £8.0m to £9.7m. The major constituents of this increase arose from
the acquisitions and increase in the Group's shareholding in existing Group
companies, as detailed above.

Goodwill is amortised over its useful economic life up to a maximum period of
twenty years. The Directors regularly review the carrying value of goodwill for

Risk factors

The principal risks that the Group face are:

Growth management

The Group's growth strategy includes the investment in and management of start
up businesses and acquisitions. This strategy has certain risks and failure to
improve operating performance of start-up businesses and acquired businesses may
adversely impact results, including the Group's cash flow.

Dependence on key executives and personnel

The Group's future success is substantially dependent on retaining and
incentivising its senior management and certain key employees. The loss of the
service of key personnel may have an adverse impact on the Group's business and

However, the Group's philosophy of management equity ensures that key management
are appropriately incentivised through equity ownership.

Financial risks and treasury management

As the Group expands internationally, it will become more exposed to risks
associated with currency fluctuations. The Directors intend to introduce
appropriate exchange management strategies to address this risk.

With regard to credit risk the company has implemented policies that require
appropriate credit checks on potential customers before contracts are commenced.

In respect of interest rate risk the Group has interest bearing assets and
liabilities. Interest bearing assets and liabilities include cash balances and
overdrafts, all of which have interest rates applied which are commensurate with
the scale of the Group's operations.

Cash flow

Net cash of £5.2m (2005: £2.5m) was generated from operating activities during
the year. After returns on investments and servicing of finance and taxation
flows of £1.5m, the surplus was reduced to £3.7m.

The Group spent £3.3m of cash on acquisitions and capital expenditure, resulting
in a cash inflow before financing of £0.3m.

The Group raised £0.7m from financing activities, resulting in an overall
decrease in net debt at the year end of £1.1m to £1.3m (2005: £2.4m)

Net operating cash flows are inflated due to an increase in the amount of
invoice discounting subject to non-recourse arrangements.

The Group expects that the cash position over the next two years will be
adversely effected by the changes in the Managed Service Company legislation
(introduced on 6 April 2007). This will be partly offset by cash inflows from
our growing operating activities but cash generation as a percentage of
operating income for the coming two years is expected to be lower.

Management of liquidity risk

The Group maintains a range of facilities appropriate to fund its working
capital requirements as well as its strategy of organic and acquisitive

At the year end, the Group's financing arrangements comprised:

â.¢ cash at bank of £3.3m
â.¢ an unutilised overdraft facility £1.75m;
â.¢ a revolving credit loan facility of £2.5m, of which £0.7m has been
â.¢ outstanding term loans of £1.3m repayable over the next two years; and
â.¢ amounts owed in respect of invoice discounting agreements of £2.6m.

The Group banks with HSBC plc.

Nick Hall-Palmer
Group Finance Director

Consolidated profit and loss account
Year ended 31 December 2006

Notes 2006 2005
£'000 £'000 £'000 £'000
Existing operations 72,946 48,342
Acquisitions 2,513 5,718

Total turnover 75,459 54,060
Cost of sales (53,619) (38,667)

GROSS PROFIT 21,840 15,393

Administrative expenses (19,097) (13,479)

Existing operations 2,667 1,217
Acquisitions 76 697

Total operating profit 2,743 1,914

Share of losses in Associated companies (203) (44)

2,540 1,870

Interest payable and similar charges (408) (263)



Tax on profit on ordinary activities (663) (726)



Minority interests (497) (233)


Earnings per share (pence)
Basic and diluted 2 4.21 3.12

All results for the group are derived from continuing operations in both the
current and preceding years.

Consolidated statement of total recognised gains and losses
Year ended 31 December 2006

2006 2005
£'000 £'000
Group 1,045 692
Associates (73) (44)

Exchange difference on net assets of overseas
subsidiaries (28) -

YEAR 944 648

Consolidated balance sheet
31 December 2006
2006 2005
£'000 £'000 £'000 £'000

Intangible assets 9,684 7,981
Tangible assets 790 535
Investment in associates 660 39

11,134 8,555

Debtors 11,480 10,169
Cash at bank and in hand 3,342 2,405

14,822 12,574

CREDITORS: amounts falling due

within one year (13,744) (10,992)



12,212 10,137

CREDITORS: amounts falling due after more than (1,201) (1,449)
one year

NET ASSETS 11,011 8,688

Called up share capital 1,193 1,113
Share premium account 5,185 3,822
Other reserve 1,539 1,539
Profit and loss account 2,285 1,447


Minority interests 809 767

11,011 8,688

Consolidated cash flow statement
Year ended 31 December 2006
2006 2005
Notes £'000 £'000 £'000 £'000

Net cash inflow from operating activities 3 5,155 2,500

Returns on investments and servicing of finance
Interest paid (408) (263)
Dividends paid to minority shareholders in
subsidiary undertakings (333) (196)

Net cash outflow from returns on
investments and servicing of finance
(741) (459)

Taxation - corporation tax paid (739) (586)

Capital expenditure and financial investment
Payments to acquire tangible fixed assets (528) (413)

Net cash outflow for capital expenditure and
financial investment (528) (413)

Purchase of businesses (2,069) (1,993)
Cash acquired with subsidiary acquired 9 462
Investment in associates (694) (21)

Net cash outflow from acquisitions (2,754) (1,552)

Dividends paid (106) (84)

Net cash inflow / (outflow) before financing 287 (594)

Issue of new shares 905 -
Repayment of loan (247) (238)
Raising of loan 725 -
(Decrease) / increase in invoice discounting (733) 316

Net cash inflow from financing 650 78

Increase / (decrease) in cash in the year 937 (516)



The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 December 2006 and 2005, but is derived
from those accounts. Statutory accounts for 2005 have been delivered to the
Registrar of Companies and those for 2006 will be delivered following the
Company's Annual General Meeting. The Auditors have reported on those accounts;
their reports were unqualified and did not contain statements under the
Companies Act 1985, sections 237(2) or (3).

Accounting policies have been consistently applied throughout 2005 and 2006,
with exception of the policy for share-based payments which was introduced in
2006 to reflect FRS 20.

2006 2005
No. No.

Ordinary shares of 5 pence each (weighted average) 23,102,238 20,798,075

£'000 £'000

Profit for the financial year 972 648

Based on current trading conditions, the directors are of the opinion that there
would be no dilution to the earnings per share figure resulting from subsidiary
minority shareholders trading up.

2006 2005
£'000 £'000

Operating profit 2,743 1,914
Depreciation of tangible assets 337 262
Loss on disposal of tangible fixed assets - 73
Amortisation of goodwill 762 618
Increase in debtors (940) (433)
Increase in creditors 2,253 66

Net cash inflow from operating activities 5,155 2,500


1 January non-cash 31 December
2006 Cash flow changes 2006
£'000 £'000 £'000 £'000

Cash at bank and in hand 2,405 937 - 3,342

Amounts owed to factors (3,302) 733 - (2,569)
Loans due within one year (225) (500) (265) (990)
Loans due after one year (1,325) 22 265 (1,038)

(4,852) 255 - (4,597)

(2,447) 1,192 - (1,255)


Acquisitions during the year contributed £64,000 (2005: £329,000) to the group's
net operating cash outflows, paid £8,000 (2005: £10,000) in respect of returns
on investments and servicing of finance and utilised £88,000 (2005: £23,000) for
capital expenditure.


The annual report and accounts for the year ended 31 December 2006 will be
posted to shareholders shortly. Additional copies will be available from the
Company Secretary at the Company's registered office Empresaria Group Plc,
Peveril Court, 6-8 London Road, Crawley, West Sussex, RH10 8JE.


2006 2005
£'000 £'000

Operating profit 2,743 1,914

Add back:
Goodwill amortisation 762 618

Adjusted operating profit 3,505 2,532

Share of loss in associated company (203) (44)
Interest receivable and similar income - -
Interest payable and similar charges (408) (263)

Adjusted profit before tax 2,894 2,225

Taxation (663) (770)
Minority interests (*) (562) (275)

Adjusted profit after tax and minority 1,669 1,180

Adjusted earnings per share (pence) 7.2 5.7

(*) - adjusted as necessary for minority interest impact from goodwill
amortisation and exceptional item adjustments.

All results for the group are derived from continuing operations in both the
current and preceding years.

This information is provided by RNS
The company news service from the London Stock Exchange

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