Empresaria Group publish year end results
% change (constant currency)
Net fee income
Adjusted operating profit*
Profit before tax
Adjusted profit before tax*
Earnings per share
Adjusted earnings per share*
· Conversion ratio increased to 14.2% (2012: 12.0%)
· Singapore start-up businesses deliver profit after two years of investment
· Turnaround in Chile to deliver profit in 2013
· Cost savings of £2.2m in Germany & Austria
· 28% reduction in reported net debt to £5.8m (2012: £8.1m)
* adjusted to exclude amortisation of intangible assets, exceptional items, gain or loss on disposal of business and movements in the fair values of options
Chief executive, Joost Kreulen, said, "In 2013 we have delivered a 17% growth in adjusted profit before tax over the prior year on stable revenues due to a focus on improving operational efficiency and maintaining a tight control of costs. This has resulted in the conversion ratio increasing to 14.2%. Improvements have been particularly marked in the Rest of the World region where the profits in Singapore and the turnaround in Chile supported a 40% increase in adjusted operating profit.
We follow a brand led growth strategy and will continue to invest in our existing businesses, with planned office openings in Kuala Lumpur, Hong Kong and Mexico City in the first half of 2014. Market conditions are improving in UK and Continental Europe and the economic forecasts are positive in all the countries in which we operate, so we see good opportunities to grow the business.
I am also delighted to announce that we have just acquired 51% of BW&P, a high quality search firm in the Technical & Industrial sector, which is based in Dubai and covers the Middle East region providing entry into a new region for Empresaria. Their management team have previously worked with Tony Martin, Zach Miles and I when they built up one of the leading staffing firms in Dubai and the UK and we see this investment as an exciting opportunity to build a leading brand in this important geographic region and deliver strong profit growth over the next few years."