Empresaria reports narrower annual loss

(Sharecast News) - Empresaria Group reported a narrower annual loss for 2025 and higher adjusted profit on Monday, after cost reductions offset weaker reported net fee income in a challenging staffing market.

The AIM-traded specialist staffing group said revenue fell 3% to £239.0m for the year ended 31 December, from £246.2m in 2024, although it rose 2% on a constant currency like-for-like basis.

Net fee income declined 6% to £47.3m, but was flat on the same constant currency like-for-like basis.

Adjusted operating profit increased 50% to £5.7m, while adjusted profit before tax rose 82% to £4.0m.

Empresaria reported an operating loss of £2.7m, compared with a £3.6m loss a year earlier, and a loss before tax of £4.4m, narrowed from £5.2m.

The company said its offshore services business again delivered strong growth, with net fee income up 16% on a constant currency like-for-like basis.

The US also performed well, with net fee income growth of 23%.

Other operations saw declines, while temporary and contract net fee income fell 4% and permanent placement remained difficult, with net fee income down 9%.

Adjusted diluted loss per share improved to 0.6p from 1.0p, while diluted loss per share narrowed to 19.0p from 21.2p.

Net debt rose to £17.1m from £15.3m, and the group said it had headroom, excluding invoice financing, of £5.4m.

No final dividend was proposed, reflecting the trading environment and the group's financial position.

Empresaria said its revolving credit facility had been extended to October 2027 after the year end.

The group also confirmed a strategic reset following a review by its new management team.

From 1 January, Empresaria formally ended its previous transformation strategy and returned to a decentralised, multi-branded staffing model aligned with its founding principles.

The company said its priorities were now to stabilise the business, eliminate loss-making activities, reinstate regional reporting, improve cost control and governance, and empower operating companies through decentralised leadership and specialist focus.

Chairman Joost Kreulen said the staffing market remained challenging throughout 2025, and that the centralised transformation strategy launched by the previous board and management had not delivered the expected commercial outcomes.

"The move toward a single-brand structure and the classification of operations as 'Core' and 'Non-core' introduced complexity and diluted the entrepreneurial strengths that historically underpinned Empresaria's success," Kreulen said.

He said the return to a decentralised, multi-branded model gave the group a clearer strategic focus and would leave Empresaria better placed for a market recovery.

At 1118 BST, shares in Empresaria Group were up 4.44% at 23.5p.

Reporting by Josh White for Sharecast.com.

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