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(Alliance News) - Empresaria Group PLC said Wednesday it expects its adjusted annual profit to drop compared to the year before, as challenges for the staffing group continue to mount.
Shares in Empresaria - which is headquartered in West Sussex - were 12% lower at 44.50 pence on Wednesday in London.
For 2019, Empresaria expects adjusted pretax profit to be at least GBP9.0 million, a drop from GBP11.4 million the year before.
This is as uncertainty over the UK's exit from the EU increased following another decision to delay Brexit, and the company's European operations have been affected by a slowdown in the German automotive sector.
The group said that its Engineering business was hurt by challenging market conditions and an adverse impact from Brexit. With material declines in revenue, Empresaria expects the Engineering business to report an annual adjusted operating loss of GBP1.5 million.
As a result of a further deterioration in trading, a material restructuring of the business is underway, which is set to be completed in January.
Looking ahead, Empresaria said it is accelerating the pace of change in its business in order to drive organic growth.
Action taken includes aligning the group into core sectors, identifying synergies with brand and markets, and identifying cost synergies, including rationalising back office support.
"While we are disappointed by the performance of our Engineering sector and the challenging economic environment, we believe we are taking the right actions for the long-term benefit of the group. We have a strong, profitable and cash generative business that is being positioned for further growth in net fee income and profitability," said Chief Executive Officer Rhona Briggs.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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