Empresaria ups profit despite falling revenue

Specialist staffing group Empresaria posted a fall in revenue and net fee income for the half year, hit by a decline in the Continental Europe region. Revenue decreased 2% to £95.6m (June 2012: £97.8m), with permanent revenue up 7% and temporary staffing revenues down 3% year-on-year. Adjusted (to exclude amortisation of intangible assets and exceptional items) profit before tax up 21% to £1.7m (June 2012: £1.4m), as the cost of sales and administrative costs both declined.The growth in permanent revenue was offset by the reduction in temporary revenue, with the decline mainly due to Continental Europe (down 11%), whereas the Rest of the World was up 12% and the UK was broadly stable. The lower sales in Germany were as expected following the introduction of equal pay legislation which has been implemented over a nine month period from November 2012. The full impact was seen at the net fee income level, down 17% on 2012 with a resulting decline in temporary margin.Joost Kreulen, Chief Executive Officer of Empresaria, said: "The group has delivered growth of 21% in adjusted profit before tax on the prior year, despite a fall in revenue and net fee income. We have seen another strong performance from the Rest of the World region which now represents 30% of group net fee income. "The UK has been fairly stable and shows signs of improving over the second half of the year. The markets in Continental Europe have been the most challenging, but cost controls have helped offset lower net fee income. "We remain focused on improving operational efficiency to deliver sustainable profit growth. We are committed to developing the group through organic expansion and by taking a selective approach to external investment opportunities."NR