Empresaria Group plc (LON:EMR) plunged into a loss in the first half of 2020 as the recruitment firm suffered a hard hit from the pandemic in its second quarter.
For the six months ended June 30, the group reported a pre-tax loss of £1.2mln compared to a £2.3mln profit the year before, while revenues sank 22% to £136.1mln and net fee income (NFI) fell 22% to £28.2mln.
The firm reported that it had experienced profit growth in its first quarter, however, its second quarter had seen a sharp 39% decline in NFI due to the pandemic. However, the firm said it had taken “decisive action” on costs during the period while net debt had also been slashed to £8.9mln from £19.1mln.
Looking ahead, Empresaria said the pandemic made it difficult to provide guidance for the rest of the year, however it said it was seeing “signs of increases in economic activity” in markets where infection rates were falling and lockdown restrictions were being eased.
“We are executing a clear strategy to ensure Empresaria emerges a stronger, more focused, growth oriented business. While there remains much work to be done and we are wary of the risk of a second wave of [coronavirus] in key markets, we are cautiously optimistic as we move into the second half of the year”, the company said.
“Given the ongoing uncertainty and risks from [coronavirus] we are cautious on the speed of recovery but remain confident in the group's ability to fulfil its longer-term growth ambitions. A great deal of progress has been made in incorporating new ways of working since the outbreak. We are confident that by maintaining a steadfast focus on our strategic priorities of operational excellence and productivity while ensuring we continue to manage our costs, we will emerge in a strong position to take advantage as and when demand returns", added chief executive Rhona Driggs.
Shares in the company were flat at 40.5p in early deals.