Pre-Close Statement

12 Jul 2005 07:01

Empresaria Group PLC12 July 2005 Empresaria Group plc Trading Update and Outlook Empresaria Group plc (the "Group") is issuing this statement before entering itsclose period on 19th July 2005, prior to the intended announcement of itsInterim Results on 19th September 2005 for the six months ended 30th June 2005. Acquisition The Group is delighted to announce the acquisition of 66 per cent. of the sharecapital of More Driving Limited ("MDL"), a company based in Bournemouthproviding contract drivers to the transport industry, for an initialconsideration of £300,000. £40,000 has been satisfied by the issue of 63,191ordinary shares in Empresaria Group plc ("Empresaria Shares") at a price of 63.3pence per share (being the average AiM mid-market price of the Group's sharesduring the five working days before completion) with the balance of theconsideration paid in cash. The remaining 34% of the shares in MDL continue tobe held by management. Further consideration of up to £100,000, to be satisfied in cash or EmpresariaShares at the Group's option, may be payable, depending on the financialperformance of MDL for the year ending 31 December 2005. The acquisition represents a significant step in the Group's strategy ofincreasing the geographical coverage of its contract driving operations. Due to the costs of integrating MDL in the Group's other contract drivingoperations, the acquisition is not expected to be materially earnings enhancingin 2005, but it is expected to contribute in 2006. Application is being made for the 63,191 new ordinary shares to be admitted totrading on AIM, which will rank pari passu with existing ordinary shares, andadmission is expected to become effective at 8 a.m. on Monday 18th July 2005. Outlook The Group is evaluating the effect on trading of the recent tragic events inLondon. No staff members were injured, nor were any of its offices damaged. Manyof the Group's temporary and contract workers operate in London and we haveexperienced some disruption to volumes in the past few days. However, we believethe effect of this will be short term and expect volumes to recover quickly. This aside, the Group remains confident that the guidance it gave in its AGMstatement of 9th June 2005 remains accurate. The Group then advised that thegreater proportion of the full year's profits would once again be earned in thesecond half and this remains the case. Performance for the half year to 30th June 2005 is expected to be substantiallyahead of that shown in 2004. Operational Overview In the United Kingdom, our Supply Chain and Logistics businesses are performingbroadly in line with management expectations and ahead of 2004. The sector isexpected to be strengthened by the acquisition of MDL described above. The Group's Construction and Property Services businesses continue to performwell and indications for the months from July to November, traditionally thesector's busiest period, are encouraging for all of our companies. Trading in Financial Services, particularly the insurance market, remained slow,although there are signs of an improvement beginning in quarter three. Both the Public Sector companies continue to make good progress, with thespecialist nursing operation making particular progress in supplying to clientsoutside of the NHS framework agreements. All of the Group's specialist brands are performing well, with the recentlyacquired Recruitment Business Limited fully meeting trading expectations. In the Group's international businesses, our Japanese operation continues totrade significantly ahead of expectations, a trend the Group expects to continuein the second half of 2005 and into 2006. Our recently established operation theUnited States has made an encouraging start, generating revenue earlier thananticipated. In summary, the Group has performed well up to expectations in the first sixmonths of 2005 and the Directors remain confident that its financial, strategicand operational goals for the year will be met. For further enquiries: Nick Hall-Palmer 01293 649 900 This information is provided by RNS The company news service from the London Stock Exchange