International specialist staffing group Empresaria Group plc (LON:EMR) is set to deliver record adjusted profits for 2017, in line with expectations.
Adjusted profit before tax is expected to be up 20% year-on-year, while net fee income should be around 17% higher than in 2016; adjusted earnings per share should be some 9% higher, year-on-year.
READ: Empresaria takes corrective action in Germany and the Middle East
Empresaria’s trading statement said there were strong performances in the UK within professional services and other services (domestic services and new house sales); in Japan in information technology and design; and in Chile, in retail.
On the down side, the technical and industrial sector experienced a tough year, while the group made every effort to minimise the impact of changes to temporary worker legislation in Germany, while the size of the business in the Middle East was adjusted, resulting in an improved performance.
Management expressed pleasure at how well its recent acquisitions have integrated into the group and noted that there was an improved performance from its US businesses in the second half.
READ: Multi-brand, global strategy helping drive record growth for staffing firm Empresaria
"Empresaria has demonstrated the benefit of its diversified business model, delivering another record profit in 2017,” said Joost Kreulen, the chief executive officer of Empresaria.
“We are 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," he added.
Allenby Capital noted that although the 2017 performance was expected to be in line with expectations, those expectations were modestly reduced following a trading update in November.
Nevertheless, with the shares trading 40% below their May 2017 peak, Allenby regards the current price level as a good buying opportunity.
The company has delivered a continuous improvement in adjusted profit before tax and earnings per share since 2010.
“Macro-economic events aside, we expect 2018 to continue the positive momentum,” Allenby said.
Shares in Empresaria were up 3.7% at 105.25p in lunchtime trading.
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