Empresaria Group PLC
12 July 2005
Empresaria Group plc Trading Update and Outlook
Empresaria Group plc (the 'Group') is issuing this statement before entering its
close period on 19th July 2005, prior to the intended announcement of its
Interim Results on 19th September 2005 for the six months ended 30th June 2005.
The Group is delighted to announce the acquisition of 66 per cent. of the share
capital of More Driving Limited ('MDL'), a company based in Bournemouth
providing contract drivers to the transport industry, for an initial
consideration of Â£300,000. Â£40,000 has been satisfied by the issue of 63,191
ordinary shares in Empresaria Group plc ('Empresaria Shares') at a price of 63.3
pence per share (being the average AiM mid-market price of the Group's shares
during the five working days before completion) with the balance of the
consideration paid in cash. The remaining 34% of the shares in MDL continue to
be held by management.
Further consideration of up to Â£100,000, to be satisfied in cash or Empresaria
Shares at the Group's option, may be payable, depending on the financial
performance of MDL for the year ending 31 December 2005.
The acquisition represents a significant step in the Group's strategy of
increasing the geographical coverage of its contract driving operations.
Due to the costs of integrating MDL in the Group's other contract driving
operations, the acquisition is not expected to be materially earnings enhancing
in 2005, but it is expected to contribute in 2006.
Application is being made for the 63,191 new ordinary shares to be admitted to
trading on AIM, which will rank pari passu with existing ordinary shares, and
admission is expected to become effective at 8 a.m. on Monday 18th July 2005.
The Group is evaluating the effect on trading of the recent tragic events in
London. No staff members were injured, nor were any of its offices damaged. Many
of the Group's temporary and contract workers operate in London and we have
experienced some disruption to volumes in the past few days. However, we believe
the effect of this will be short term and expect volumes to recover quickly.
This aside, the Group remains confident that the guidance it gave in its AGM
statement of 9th June 2005 remains accurate. The Group then advised that the
greater proportion of the full year's profits would once again be earned in the
second half and this remains the case.
Performance for the half year to 30th June 2005 is expected to be substantially
ahead of that shown in 2004.
In the United Kingdom, our Supply Chain and Logistics businesses are performing
broadly in line with management expectations and ahead of 2004. The sector is
expected to be strengthened by the acquisition of MDL described above.
The Group's Construction and Property Services businesses continue to perform
well and indications for the months from July to November, traditionally the
sector's busiest period, are encouraging for all of our companies.
Trading in Financial Services, particularly the insurance market, remained slow,
although there are signs of an improvement beginning in quarter three.
Both the Public Sector companies continue to make good progress, with the
specialist nursing operation making particular progress in supplying to clients
outside of the NHS framework agreements.
All of the Group's specialist brands are performing well, with the recently
acquired Recruitment Business Limited fully meeting trading expectations.
In the Group's international businesses, our Japanese operation continues to
trade significantly ahead of expectations, a trend the Group expects to continue
in the second half of 2005 and into 2006. Our recently established operation the
United States has made an encouraging start, generating revenue earlier than
In summary, the Group has performed well up to expectations in the first six
months of 2005 and the Directors remain confident that its financial, strategic
and operational goals for the year will be met.
For further enquiries:
Nick Hall-Palmer 01293 649 900
This information is provided by RNS
The company news service from the London Stock Exchange