Last checked at 21 Nov 2017 07:00
21 November 2017
Empresaria Group plc ("Empresaria" or the "Group")
Trading update: reduced performance in Germany and the Middle East
Empresaria (AIM: EMR), the international specialist staffing group, provides the market with an update on trading. The second half year adjusted profit before tax ("adjusted PBT") is expected to be ahead of both the first half and prior year. Although the Group is on track to deliver a record adjusted PBT for the full year, it is expected to be below current market expectations.
This is primarily due to an increased current year impact from two issues that have previously been highlighted. The Group has seen reduced margins in Germany following the legislation changes, the impact of which has started to be felt earlier than previously anticipated. We expect the impact on adjusted PBT to continue through 2018, although we are confident that these changes will have a positive effect on the staffing market in Germany and so for our German business into the medium term. In the Middle East the weak market has continued, resulting in additional costs for resizing that business.
In line with the Group's operating practices, where Group companies have performed below our expectations, corrective actions have been taken. The Group's strategy of being diversified by sector and geography minimises our dependence on any single geography or sector, therefore reducing the impact from isolated market fluctuations and external factors. Whilst full year adjusted PBT is now expected to be below market expectations, our diversified strategy leaves the Group on track to deliver another record adjusted PBT.
As a separate matter, the Group has recently concluded the divestment of a non-core training business. This results in a one-off accounting loss on disposal of circa £1.0m, largely due to historic funding and investment. As a loss on disposal, this does not affect the adjusted PBT.
The Group will issue a trading update on 24 January 2018 and will publish its results for the year ended 31 December 2017 on 14 March 2018.
Enquiries:
Empresaria Group plcJoost Kreulen, Chief Executive OfficerSpencer Wreford, Group Finance Director & Chief Operating Officer | via Redleaf |
Arden Partners (Nominated Adviser and Broker)John Llewellyn-Lloyd / Steve Douglas / Ciaran Walsh | 020 7614 5900 |
Redleaf Communications (Financial PR)Elisabeth Cowell | 020 7382 4730empresaria@redleafpr.com |
Notes for editors:
§ Empresaria Group plc is an international specialist staffing group with 18 brands operating in 20 countries across the globe including UK, Germany, Japan, India, UAE, Indonesia, Chile, Australia, Thailand, Singapore, Finland, USA, New Zealand, China, Malaysia, Vietnam and the Philippines.
§ Empresaria offers temporary/contract and permanent staffing solutions as well as Offshore Recruitment Services in seven key sectors, being Technical & Industrial, Aviation services, IT & Design, Professional services, Healthcare, Executive search and Retail.
§ Empresaria applies a multi brand, management equity philosophy and business model, with group company management teams holding significant equity in their own business.
§ Empresaria is listed on AIM under ticker EMR. For more information: empresaria.com