International staffing firm Empresaria Group plc (LON:EMR) said results for the year just ended will be slightly ahead of expectations.
Adjusted profit before tax growth is expected to be up 23% year-on-year, representing a record profit level for the group.
Net fee income was around 20% ahead of the prior year and diluted adjusted earnings per share are expected to be up 12% on 2015.
Management revealed that there were strong performances across the group, and even the UK, which was looking like a potential problem child at the halfway point of the year, saw stable activity levels return in the second half of the year.
Unfortunately, the subdued performance in the first half means the UK’s profits will be down year-on-year, but the group has responded by cutting costs.
Management said it is encouraged by increased activity levels in the UK business as 2017 gets under way.
The trading update highlighted Skillhouse in Japan, Monroe in South East Asia and Headway in Germany as units that all delivered solid growth.
Empresaria is slightly unusual for a global recruitment group in that it embraces a multi-brand approach, as it believes that policy liberates the entrepreneurial spirit of its agencies.
In the Middle East, the weak economic conditions persisted in the second half and expected improvements did not materialise. The business has been restructured accordingly and the group expects an improved result in 2017 from this region.
Meanwhile, the group’s US investment, Pharmaceutical Strategies, is integrating well, having won a number of new clients and improved penetration across key clients, Empresaria said.
The decision during the year to invest in the US unit’s management team and the agency’s largest client deciding to reduce its overall spend on staffing requirements has resulted in a short-term impact on profitability. Despite this, the business continues to see good growth opportunities going forward.
"Empresaria has demonstrated the benefit of its diversified business model, producing strong results with adjusted profit before tax up 23% on the prior year. We continue to deliver on our strategy: strengthening a multi-branded group, with a focus on developing leading brands that are diversified and balanced by geography and sector,” said Joost Kreulen, chief executive officer of Empresaria.
“Alongside the strong growth in a number of regions, we are particularly pleased with the performance of the two international investments made during the year: Rishworth Aviation and ConSol Partners, with both performing well. These, alongside the successful integration of Pharmaceutical Strategies, are all important illustrations of the success of the group's 'Invest & Develop' strategy and we look forward to the growth opportunity that these businesses have as part of the wider group,” Kreulen continued, adding that the group continues to see exciting growth opportunities in 2017.