TIDMEMR
RNS Number : 3272H
Empresaria Group PLC
27 July 2023
27 July 2023
Empresaria Group plc
("Empresaria" or the "Group")
Trading Update and Notice of Results
Challenging market conditions continuing to impact results
Empresaria (AIM: EMR), the global specialist staffing group,
today provides a trading update ahead of announcing its interim
results on 22 August 2023.
Trading update
-- H1 net fee income down 9% year-on-year to GBP29.7m (down 10% in constant currency)
-- Adjusted net debt slightly increased to GBP8.7m (31 December
2022: GBP7.9m) with headroom slightly increased to GBP18.4m
-- Anticipated improvements to trading conditions have not been
seen and we now do not expect these to significantly change in the
second half of 2023.
-- Full year adjusted profit before tax is expected to be
materially lower than market expectations
As highlighted in the trading update on 23 May 2023, the
softening of demand and slowing of hiring decisions seen across the
Group's businesses in the second half of 2022 have continued into
2023. These difficult market conditions have been experienced
across the Group, particularly in the US. The greatest net fee
income impact has been on permanent recruitment which was down 24%
year-on-year with temporary and contract down 8%.
Our Offshore Services operation, where there is a 28%
non-controlling interest, delivered year-on-year net fee income
growth of 15% against the first half of 2022. Sales to UK clients,
which primarily support the Healthcare sector, have continued to
grow strongly, however sales to our US clients, the majority of
which support the IT sector, have continued to be impacted by the
fall in client demand seen in the second half of 2022.
The Group has already implemented a number of targeted measures
to manage its cost base, including reductions in headcount, and we
continue to keep costs under review. However, given the ongoing
trading conditions, which we no longer expect to improve
significantly in the second half of the year, full year adjusted
profit before tax is now expected to be approximately GBP5m.
Financial position
Adjusted net debt as at 30 June 2023 increased slightly to
GBP8.7m (31 December 2022: GBP7.9m) reflecting trading performance
and a normal H1 weighting of certain key cash outflows. Headroom
has increased slightly to GBP18.4m reflecting improved efficiency
in the management of cash balances.
Rhona Driggs, CEO of Empresaria, commented:
"We continue to face challenging market conditions which
developed through the second half of 2022 and remained throughout
the first half of 2023. We have not seen the anticipated signs of
sustained improvement as client confidence remains low and
candidates continue to be reluctant to move in the current
environment. With the ongoing macro-economic uncertainty, we now
expect these factors to continue to have an adverse impact on the
Group's profits in the second half of 2023.
We have taken action on our cost base and will continue to
maintain tight control over costs while ensuring that we are able
to maximise opportunities as and when market confidence returns.
While we are disappointed with these results, we are continuing to
execute on our strategic initiatives and are confident in the
medium and longer-term prospects of the Group."
Investor presentation
In line with Empresaria's commitment to ensuring appropriate
communication structures are in place for all sections of its
shareholder base, management will deliver an online results
presentation open to all existing and potential investors via the
Investor Meet Company platform on Tuesday 22 August 2023 at 4:30pm
UK time.
Questions can be submitted pre-event through the platform or at
any time during the live presentation. Management may not be in a
position to answer every question it receives but will address
those it can while remaining within the confines of information
already disclosed to the market.
Q&A responses will be published at the earliest opportunity
on the Investor Meet Company platform.
Investors can sign up for free via:
https://www.investormeetcompany.com/empresaria-group-plc/register-investor
. Those who have already registered and requested to meet the
Company will be automatically invited.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK version of the EU Market Abuse Regulation (2014/596) which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended and supplemented from time to time.
- Ends -
Enquiries:
Empresaria Group plc via Alma PR
Rhona Driggs, Chief Executive Officer
Tim Anderson, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Joint
Broker)
Shaun Dobson / James Moat 020 7496 3000
Cenkos Securities plc (Joint Broker)
Katy Birkin / Charlie Combe (Corporate Finance)
Michael Johnson / Jasper Berry (Sales) 020 7397 8900
Alma PR (Financial PR) 020 3405 0205
Sam Modlin / Rebecca Sanders-Hewett / Pippa Crabtree empresaria@almapr.com
/ Hilary Buchanan
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 from locations 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 visit empresaria.com.
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END
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