(Sharecast News) - Shares in specialist staffing group Empresaria were tumbling on Tuesday after it updated the market on its trading in the face of challenging market conditions.
The AIM-traded firm said the challenges, which had persisted throughout 2023, were expected to continue into the first half of 2024.
Notably, the adverse effects were most pronounced in permanent recruitment, where clients delayed hiring decisions and start dates until the new year.
As a result, Empresaria said it expected its full-year adjusted profit before tax to fall within the range of £3m to £3.5m.
It said that it had taken significant measures throughout the year to address costs, so it anticipated that costs in the second half would be more than £3m lower than in the first half.
Empresaria said it was committed to executing its strategic plan, emphasising the simplification of its operations and a vigilant approach to cost control.
The board was confident that the actions would position the firm favourably for growth once market conditions improved.
Empresaria said it would provide a comprehensive update on its full-year trading performance on 25 January.
At 1120 GMT, shares in Empresaria Group were down 21.25% at 31.5p.
Reporting by Josh White for Sharecast.com.
Empresaria Group (EMR)