REG - Empresaria Group PLC - Trading Update

EmpresariaAnnouncement

22/10/2024 07:00

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RNS Number : 0316J  Empresaria Group PLC  22 October 2024

22 October 2024

 

Empresaria Group plc

("Empresaria" or the "Group")

 

Trading Update

Empresaria, the global specialist staffing group, today provides an update on
trading.

 

The challenging, industry wide, market conditions that have persisted for the
last two years continue to adversely impact the Group with conditions
worsening in a number of markets and permanent recruitment demand generally
remaining extremely subdued.  The third quarter of 2024 did see some slowing
of the impact of these conditions on the Group with net fee income down 4%
year-on-year (constant currency, excluding exited operations) compared to a 9%
year-on-year fall in H1 (constant currency, excluding exited operations).
 However, despite this relatively good performance in the third quarter, we
now expect results in the fourth quarter to be worse than previously forecast
with market conditions in Germany particularly challenging, at what is
normally a peak time for our operations there, along with a continued
deterioration of markets in APAC which in some cases had been relatively
resilient.  We expect these adverse trading conditions to continue through
the first half of 2025.  As a result, full year adjusted profit before tax is
now expected to be no less than £2.0m.

 

Our bank has relaxed the interest cover covenant to 3x (normally 4x) for
December 2024 testing, ensuring that we expect to remain compliant.  As at 30
September, adjusted net debt was £13.6m and available headroom was £6.5m
(excluding invoice financing).

 

We continue to execute on our strategy to simplify the Group, completing the
exit from another small operation in the second half with one more nearing
completion, and simplifying how we operate while maintaining strong control
over costs.  We are confident that the actions we have taken, and are taking,
will ensure the Group is well positioned to deliver on our growth potential
when the market recovers.

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation (2014/596) which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time.

 

- Ends -

 

Enquiries:

 Empresaria Group plc                                         via Alma PR
 Rhona Driggs, Chief Executive Officer

Tim Anderson, Chief Financial Officer
 Singer Capital Markets (Nominated Adviser and Joint Broker)  020 7496 3000
 Shaun Dobson / Alex Bond
 Cavendish Capital Markets Limited (Joint Broker)             020 7220 0500
 Katy Birkin (Corporate Finance)

 Michael Johson / Jasper Berry (Sales)
 Alma Strategic Communications (Financial PR)                 020 3405 0205
 Sam Modlin / Rebecca Sanders-Hewett / Will Merison
empresaria@almastrategic.com

 

Notes for editors:

 §   Empresaria Group plc is a global specialist staffing group.  We are driven by
     our purpose to positively impact the lives of people, while delivering
     exceptional talent to our clients globally.  We offer temporary and contract
     recruitment, permanent recruitment and offshore services across six sectors:
     Professional, IT, Healthcare, Property, Construction & Engineering,
     Commercial and Offshore Services.
 §   Empresaria is structured in four regions (UK & Europe, APAC, Americas and
     Offshore Services) and operates from locations across the world including the
     four largest staffing markets of the US, Japan, UK and Germany along with a
     strong presence elsewhere in Asia Pacific and Latin America.
 §   Empresaria is listed on AIM under ticker EMR.  For more information visit
     www.empresaria.com.

 

 

 

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