Empresaria Group announce operating profit up 21%
The Group has delivered a strong growth in profit over the prior year with earnings per share up 22% on 2013, showing the benefit of our diversified and balanced business model.
% change (constant currency)**
Net fee income (gross profit)
Adjusted operating profit*
Profit before tax
Adjusted profit before tax*
Earnings per share
Adjusted earnings per share*
· Group delivering against strategy with strong first half performance, with profit before tax up 41% in constant currency (25% reported)
· Currency headwinds impacted revenues, decreasing 2% to £94.0m (June 2013: £95.6m), with permanent revenue up 10% and temporary staffing revenues down 3%, year on year
· Net fee income ("NFI") up 10% in constant currency (3% reported)
· Four consecutive quarters of underlying growth in NFI over the prior year
· Conversion ratio (adjusted operating profit divided by net fee income) increased to 10.9% (2013: 9.4%)
· 27% reduction in reported net debt to £6.5m (2013: £8.9m)
* Adjusted to exclude amortisation of intangible assets, exceptional items, gain or loss on disposal of business and accounting movements in fair values.
** The constant currency movement is calculated by translating the 2013 results at the 2014 exchange rates.
· All regions delivered good underlying growth, with market conditions improving in the UK and Germany
· Acquisition of Dubai based professional search firm announced in March 2014
· Organic investments in new offices in Hong Kong, Malaysia, Chile and Mexico provides long term growth opportunities
· Geographically diversified NFI (UK 36%, Rest of the World 33% and Continental Europe 31%)
Chief Executive Officer, Joost Kreulen said:
"The Grouphas made strong progress to date in 2014, both financially and operationally,and is delivering on its brand led strategy with a focus on growth markets and sectors. In the first half of 2014 the Group experienced a 24% increase in Adjusted profit before tax, with Adjusted earnings per share increasing 25%.
"As per the stated strategy, we continue to invest in our brands to deliver future growth, with new offices opened in Hong Kong, Malaysia, Chile and Mexico. During the period we also made an investment in a Dubai based professional search firm which allowed Empresaria to enter into a new and important geographic region. We continue to investigate further investment opportunities to help drive our business forward.
"Despite currency headwinds we see exciting growth opportunities ahead and are confident in our ability to deliver profit growth over the next few years. Based on performance to date, we are confident that earnings for the full year will be in line with market expectations and look forward to delivering further growth."