Empresaria

Results for the year ended 31st December 2019

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 Highlights20192018% change% change (constant currency) *2Revenue£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)p9.1p-118%Ajusted diluted earnings per share *18.5p12.1p-30%Diversified business delivering growth in net fee income+3%, +2% in constant currency37% growth in Offshore Recruitment Services sectorDecline in profits reflecting a challenging economic environment in certain key marketsImpact from engineering business and Brexit uncertainty in the UK, alongside the weakening of the German automotive sectorStrong growth in other marketsOffshore Recruitment Services adjusted operating profit up 88%Stronger Together initiative with a focus on organic growth and operational improvementAligned business around six core sectors to improve collaboration and leverage synergiesIncreased support from central teamInvestment in common technology (e.g. Bullhorn)Evolving operating models in certain brands to enable them to scale more effectivelyCreating a performance based cultureProposed dividend of 2.2p per share, an increase of 10% in line with progressive dividend policyBuilding 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 –Enquiries:Empresaria Group plcRhona Driggs, Chief Executive OfficerTim Anderson, Chief Financial Officervia Alma PR N+1 Singer (Nominated Adviser and Broker)Shaun Dobson / James Moat020 7614 5900Alma PR (Financial PR)Rebecca Sanders-Hewett, Sam Modlin, David Ison, Hilary Buchanan020 3405 0205empresaria@almapr.comNotes 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.comFor the full announcement click here.

Trading Update and Notice of Results 2019

First half net fee income growth and on course to deliver full year adjusted profit before tax in line with market expectations.Empresaria (AIM: EMR), the international specialist staffing group, is pleased to provide a trading update ahead of announcing its interim results on Wednesday 21 August 2019.For the first half the Group has delivered solid net fee income growth of 7%, 6% in constant currency. As part of the Group's Stronger Together initiative, launched in May, brands have been aligned to the Group's core staffing sectors. This will be a key driver in delivering improved results through increased collaboration in "like" businesses, driving operational efficiencies and maximising synergies in each of the sectors. An analysis of net fee income by sector is provided below.Net fee income by sector for the 6 months to 30 June:£m20192018% change% change (constant currency)*Professional15.614.4+ 8%+ 7%IT6.86.5+ 5%+ 2%Engineering2.22.6- 15%- 15%Commercial9.18.9+ 2%+ 3%Offshore Recruitment Services2.81.8+ 55%+ 55%Intragroup(0.2)(0.2)--Total36.334.0+ 7%+ 6%* The constant currency movement is calculated by translating the 2018 results at the 2019 exchange rates.The Group's Professional sector has shown strong growth, with positive performances overseas and in the UK more than offsetting the adverse impact of Brexit uncertainty on those UK businesses that operate in the financial services and new house sales markets.The Group's IT sector has grown, more than offsetting the challenges of rebuilding the temp base in Japan following the regulatory changes last year.The Group's Engineering sector, which is primarily based in the UK, has struggled in the first half with challenging market conditions and the ongoing impact from Brexit. The business has been restructured with changes to key management and refocused to target the more lucrative white collar part of the market and the Group expects to see improved results starting to come through in the second half of the year.The Group's Commercial sector has a significant presence in Germany where the focus is on rebuilding the temp base following the changes in legislation last year. This has been progressing well but has been offset by the weaker German automotive sector which represents a key market. The Group's investment in July 2018 in the Commercial sector, Grupo Solimano in Peru, contributed £0.9m to net fee income in the period as expected.The Group's Offshore Recruitment Services business in India continues to build on the strong growth of 2018 with another period of significant growth in the first half of 2019. The Group expects this sector to continue to be a strong driver of growth in the future.Adjusted net debt at 30 June 2019 is £18.1m, an increase against the 31 December position of £17.1m. In July the Group invested in additional shares in ConSol Partners for consideration of £3.5m, increasing net debt by this amount.As expected, adjusted profit before tax for the first half is anticipated to be approximately £3.7m (2018: £4.7m) excluding the costs associated with the previous CEO stepping down in June 2019 which have been treated as exceptional. This reflects the lower starting position of businesses in Germany and Japan along with the impact of Brexit uncertainty in the UK and a higher central cost base following the investments made in the second half of 2018. The Board is positive about the prospects for the second half of the year and the Group remains on course to deliver adjusted profit before tax in line with market expectations.Rhona Driggs, CEO of Empresaria, commented:"We have remained focused on efforts to improve organic growth across the Group and as a result our net fee income continues to show improvement. Our sector alignment and continued investment in best in class technology, along with recent actions taken in underperforming businesses, means that we are well placed to continue to drive organic net fee income growth and to improve profitability."Enquiries:Empresaria Group plcRhona Driggs, Chief Executive OfficerTim Anderson, Chief Financial Officervia Alma PRArden Partners (Nominated Adviser and Broker)John Llewellyn-LloydCiaran Walsh020 7614 5900Alma PR (Financial PR)Rebecca Sanders-HewettSam ModlinHilary Buchanan020 3405 0205empresaria@almapr.comNotes for editors:Empresaria Group plc is an international specialist staffing group with 20 brands operating in 21 countries across the globe including the UK, Germany, Japan, India, UAE, Indonesia, Chile, Australia, Thailand, Singapore, Finland, USA, New Zealand, China, Malaysia, Vietnam, the Philippines and Peru.Empresaria offers temporary/contract and permanent staffing solutions as well as Offshore Recruitment Services in seven key sectors: Technical & Industrial, Aviation services, IT & Design, Professional services, Healthcare, Executive search and Retail.Empresaria applies a multi brand, management equity philosophy and business model, with group company management teams holding significant equity in their own business.Empresaria is listed on AIM under ticker EMR. For more information: empresaria.com