Proactive Investors - Run By Investors For Investors

Empresaria Group delivers another year of record profits

Empresaria trumpeted 18 consecutive quarters of net fee income growth and six consecutive years of double-digit percentage growth in adjusted earnings per share
Office workers
Empresaria saw strong profit growth in Japan, Chile and parts of the UK business

International specialist staffing group Empresaria Group plc (LON:EMR) delivered another record year of profit in 2017.

The group said that worldwide economic conditions are “largely positive” and the main markets in which it operates are expected to grow – even the poor old UK, which continues to operate “under a cloud of Brexit uncertainty”.

The positive economic outlook suggests a good year ahead for the staffing sector, with "Staffing Industry Analysts" forecasting 6% growth in the global staffing sector in 2018, noted Empresaria's chairman, Tony Martin.

The group is, however, maintaining a cautious view on political risk, which could derail growth in any territory, while it will have to overcome the impact of new legislation in its markets, with particular changes in Germany and Japan affecting the temporary staffing markets in 2018.

READ: Empresaria Group confirms strong performance in 2017

Revenue in 2018 rose 32%, or 28% on a constant currency (CC) basis to £357.1mln from £270.4mln the year before. Revenue from permanent placements was up 14% year-on-year while temporary and contract revenue was up 34%.

Net fee income rose for the eighth consecutive quarter to £69.4mln from £59.0mln the year before – a 13% change on a CC basis.

Adjusted profit before tax rose 20% (CC:14%) to £11.0mln from £9.2mln the year before while reported profit before tax rose 3% (CC: -2%) to £8.1mln from £7.9mln in 2016.

The group saw strong profit growth in Japan, Chile and in the professional services and other specialist sectors of the UK business.

The conversion ratio nudged up to 16.7% from 16.6% in 2016, representing the sixth consecutive year of improvement.

The final dividend has been increased by 15% to 1.32p from 1.15p the previous year.

"We are pleased to be reporting another year of record results, with this period being the sixth year of double-digit adjusted diluted earnings per share growth,” revealed Joost Kreulen, the chief executive of Empresaria.

“Our diversification by geography and sector places the group in a strong position to withstand localised market issues. The group remains focused on delivering our strategy: strengthening a multi-branded group, with a focus on developing leading brands that are diversified and balanced by geography and sector,” Kreulen continued.

“The group has a strong platform in place from which to launch the next phase of its growth and we see good opportunities to support the profitable growth of our brands in the year ahead," the Empresaria CEO concluded.

View full EMR profile View Profile

Empresaria Group plc Timeline

Related Articles

Talent meter
March 07 2018
Underlying profits are up 20% year-on-year and net fee income should be around 17% higher
stobart air plane at london southend airport
September 05 2017
Warwick Brady is targeting 5mln passengers a year at its London Southend Airport and the delivery of 3mln tonnes of biomass annually by 2022
picture of drugs
July 03 2017
Frontier trades its commercial expertise for stakes in the university spin outs and has a core portfolio is six firms.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use