Specialist recruiter Empresaria Group PLC (LON:EMR) has confirmed to investors that it enjoyed a record first half performance, boosted by strong performances from its recent acquisitions.
As flagged in last month’s trading update, net fee income – gross profit – for the six months ended 30 June jumped 26% to £34.4mln (H1 2016: £27.2mln) on significantly higher revenues of £173.4mln (H1 2016: £106.1mln).
WATCH: Capital Network's Ed Stacey on Empresaria Group
Overall group profit before tax for the period climbed by 13% to £2.5mln (H1 2016: £3.1mln).
The UK and the Asia Pacific regions enjoyed a strong opening six months, with both divisions buoyed by new acquisitions.
ConSol beefs up UK revenues
Last October, Empresaria snapped up a majority stake in ConSol Partners for £9.4mln which beefed up its IT staffing capability predominantly in the UK, although it does have smaller operations in the US and Europe.
That addition helped to push UK net fee income up to £12.1mln from £9.2mln a year earlier, while revenues also rose sharply to £43.9mln (H1 2016: £32mln).
READ: Record first half performance from Empresaria as UK firms buck Brexit fears
UK businesses had been largely resilient against the uncertain economic and political backdrop during the period, although Empresaria added there was a “noticeable slow down” in the hiring process after the general election.
That said, the company is still seeing “good levels of vacancies” coming to the market and there are still candidate shortages across its key sectors.
Rishworth helps Asia Pacific revenues soar
Back in last month’s update, Empresaria noted that the Asia Pacific regions had enjoyed the “strongest trading” in the first six months of 2017 – and that was certainly the case.
Revenues in the Asia Pacific division almost quadrupled to £64.2mln (H1 2016: £16.2mln), with the “majority” of those gains coming from Empresaria’s £7.5mln acquisition of a majority stake in Rishworth Aviation last summer.
There was also “good growth” more generally in Japan, Thailand and Malaysia, the company added.
The Middle East is still proving a bit tricky with net fee income and revenues both declining again in the first half. But Empresaria has taken steps to reduce costs and has implemented “a clear plan” to return that particular region back to profitability.
Europe, Americas solid
Trading in Empresaria’s two other territories – continental Europe and the Americas – was solid.
Net fee income in the Americas business grew to £3.4mln (H1 2016: £2mln) although the firm expects this to pick up even further as it begins to feel the benefits of its recent investment in the ConSol Partners Los Angeles office.
READ: Multi-brand, global strategy helping drive record growth for staffing firm Empresaria
Over in Europe, Empresaria saw greater pressure of margins during the period which knocked net fee income down to £7.8mln (H1 2016: £8.1mln) despite posting higher revenues of £46.5mln.
On track to hit full-year expectations
“Empresaria has delivered a record first half result with a strong growth in adjusted earnings per share, demonstrating the strength of our diversified business model,” said chief executive Joost Kreulen.
“We are pleased with how both Rishworth Aviation and ConSol Partners have integrated into the Group and we see good opportunities for them to grow their businesses as part of Empresaria.
“We see good growth opportunities across our brands and from further potential investments. We remain confident in our ability to meet current market expectations for the full year.”
Shares gained 0.4% to 142p on Tuesday morning.
--Updates for share price--