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Revenue down 2% at year-end 2019 for Empresaria

Empresaria has released its results for the year ended 31st December 2019.

Revenue was down 2% to £358.0m with net fee income up 3% to £74.5m. The company saw operating profit of £4.0m, a decrease of 61% with adjusted operating profit falling 15% to £10.4m. Profit before tax was down 69% at £2.9m, with adjusted operating profit at £9.3m, a decrease of 18%.

Chief executive officer, Rhona Driggs, commented, "We are pleased to be reporting net fee income growth in a challenging economic environment.  These challenges have impacted the bottom line, particularly in our UK engineering business where we have taken the decision to close a substantial part of the operation.

“Notwithstanding the wider market challenges, we have made great progress in 2019 in implementing operational improvements that will help us build a strong platform for future growth.  These are spearheaded by our Stronger Together initiative, which aligns our business around core sectors, enabling us to share common experiences and leverage synergies.

“We are focused on driving organic growth and have a series of operational improvements and investments under way to deliver this, some of which are already bearing fruit.  Our central team is delivering increased levels of support to ensure our businesses benefit from being part of a global group.  Additionally, we are investing in technology, including working with Bullhorn to upgrade our front office system, to ensure that we remain competitive in connecting talent with jobs.  Our Offshore Recruitment Services sector, which delivered an 88% increase in adjusted profit, will also be a key driver of growth across the Group as we look to make better use of this internal expertise.

“While we are cognisant of the ongoing economic and market headwinds, particularly the outbreak of coronavirus, we are confident that the positive changes we have made in 2019 and the further changes and investments planned in 2020 leave us well positioned for the longer term."

In the company’s professional sector, revenues decreased by 11% to £125.0m while net fee income increase 2% to £27.3m. In IT, revenue increased by 3% to £45.2m and net fee income was £14.4m, up 6%. In the healthcare, revenue was flat year-on-year at £11.3m and net fee income increased by 4% to £2.8m. In property, construction and engineering, revenues fell to £22.4m, a decrease of 29% and net fee income decreased by 28% to £3.8m. In commercial, revenue was £142.4m, an increase of 7%, with net fee income up 3% to £19.7m. In offshore recruitment services, revenue was £12.2m, an increase of 54%, and net fee income was up 37% to £7.0m.

In the UK, revenues fell to £77.6m, from £85.7m in 2018. Net fee income also decreased to £22.6m and adjusted operating profit fell to £1.2m. In continental Europe, revenues decreased to £93.1m, net fee income fell to £14.7m and adjusted operating profit also dropped to £4.0m.

In Asia Pacific, revenues decreased to £126.4m, but net fee income increase to £27.7m and adjusted operating profit rose to 7.2m. In the Americas, revenue increased to £61.4m, net fee income rose to £10.0m and adjusted operating profit fell slightly to £2.2m.

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