Good morning, it's Paul here.

Thanks for the positive comments yesterday. Things work much better when I'm at home, on the south coast, and can properly devote my energies to these reports. It all goes haywire when I'm in London, so will keep away from the capital, for the time being, and certainly in this heatwave.

To catch up on a couple of things from yesterday;


Empresaria (LON:EMR)

Share price: 68.5p
No. shares: 49.0m
Market cap: £33.6m

I remember when some friends and I met management of this small, international staffing group, about 4 years ago. We came away with the idea that it was good value, and I bought some stock at about 56p. Anyway, it's largely done a Grand Old Duke of York since - as so many shares do actually. Perhaps we like to kid ourselves that we have great insights, but in reality, we often just get lucky in catching an upward surge in share price, that subsequently reverses.

One issues that bothers me with Empresaria, is the unexpected departure of the former CEO called Spencer Wreford. At company meetings (he was previously CFO) he seemed to be in control of the facts & figures. So why did he suddenly leave on 27 June 2019? That bothers me.

Today's update seems to mention numerous divisions, for such a tiny market cap company. Does that really make sense, to have all these different small subsidiaries, in different countries? I struggle to see the logic of such a business model.

Trading - the last sentence sounds reassuring;

As expected, adjusted profit before tax for the first half is anticipated to be approximately £3.7m (2018: £4.7m) excluding the costs associated with the previous CEO stepping down in June 2019 which have been treated as exceptional.  This reflects the lower starting position of businesses in Germany and Japan along with the impact of Brexit uncertainty in the UK and a higher central cost base following the investments made in the second half of 2018. 

The Board is positive about the prospects for the second half of the year and the Group remains on course to deliver adjusted profit before tax in line with market expectations.


Net debt - I've tried very hard, but have never really got my head around the various elements of this, and whether…

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