22 October 2024
Empresaria Group plc
("Empresaria" or the "Group")
Trading Update
Empresaria, the global specialist staffing group, today provides an update on trading.
The challenging, industry wide, market conditions that have persisted for the last two years continue to adversely impact the Group with conditions worsening in a number of markets and permanent recruitment demand generally remaining extremely subdued. The third quarter of 2024 did see some slowing of the impact of these conditions on the Group with net fee income down 4% year-on-year (constant currency, excluding exited operations) compared to a 9% year-on-year fall in H1 (constant currency, excluding exited operations). However, despite this relatively good performance in the third quarter, we now expect results in the fourth quarter to be worse than previously forecast with market conditions in Germany particularly challenging, at what is normally a peak time for our operations there, along with a continued deterioration of markets in APAC which in some cases had been relatively resilient. We expect these adverse trading conditions to continue through the first half of 2025. As a result, full year adjusted profit before tax is now expected to be no less than £2.0m.
Our bank has relaxed the interest cover covenant to 3x (normally 4x) for December 2024 testing, ensuring that we expect to remain compliant. As at 30 September, adjusted net debt was £13.6m and available headroom was £6.5m (excluding invoice financing).
We continue to execute on our strategy to simplify the Group, completing the exit from another small operation in the second half with one more nearing completion, and simplifying how we operate while maintaining strong control over costs. We are confident that the actions we have taken, and are taking, will ensure the Group is well positioned to deliver on our growth potential when the market recovers.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.
- Ends -
Enquiries:
| Empresaria Group plc | via Alma PR |
| Singer Capital Markets (Nominated Adviser and Joint Broker) | 020 7496 3000 |
| Cavendish Capital Markets Limited (Joint Broker) Michael Johson / Jasper Berry (Sales) | 020 7220 0500 |
| Alma Strategic Communications (Financial PR) | 020 3405 0205 |
Notes for editors:
| § | Empresaria Group plc is a global specialist staffing group. We are driven by our purpose to positively impact the lives of people, while delivering exceptional talent to our clients globally. We offer temporary and contract recruitment, permanent recruitment and offshore services across six sectors: Professional, IT, Healthcare, Property, Construction & Engineering, Commercial and Offshore Services. |
| § | Empresaria is structured in four regions (UK & Europe, APAC, Americas and Offshore Services) and operates from locations across the world including the four largest staffing markets of the US, Japan, UK and Germany along with a strong presence elsewhere in Asia Pacific and Latin America. |
| § | Empresaria is listed on AIM under ticker EMR. For more information visit www.empresaria.com. |
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