Empresaria Group Plc · LSE:EMR
Empresaria — FY2024 Earnings Presentation
27 slides from Empresaria's earnings presentation, March 2025
Slide 1: Investor presentation: 2024 full year results
Investor presentation 2024 full year results, March 2025 Rhona Driggs Tim Anderson Chief Executive Officer Chief Financial Officer
Slide 2: Welcome
Welcome 3 2024 overview & highlights 6 Financial review Rhona Driggs 9 Operating review Chief Executive Officer 14 Our accelerated strategy Tim Anderson Chief Financial Officer 19 Summary 22 Appendices 2
Slide 3: 2024 overview & highlights
Empresaria 2024 overview & highlights
Slide 4: Financial overview
Financial overview • Challenging market conditions continued throughout the year which impacted net fee income • Reduced by 6% CC LFL to £50.4m • Permanent placement down 21% CC LFL • Temporary and contract up 2% CC LFL • Offshore Services down 6% CC • Adjusted operating profit down 21% CC LFL, with
Slide 5: Operating overview
Operating overview • Continued to deliver on strategic initiatives • Completed exits of individual operations in Finland, China, Japan, Australia and the UK • Starting to deliver benefits from streamlining management structure and alignment of operations under a single leader in each country (e.g. G
Slide 6: Financial review
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Slide 7: Summary income statement
Summary income statement £m 2024 2023 % change % change (CC LFL*) Revenue 246.2 250.3 -2% +5% Net fee income 50.4 57.5 -12% -6% Administrative costs (46.6) (52.4) -11% Adjusted operating profit – Regions 7.9 8.8 -10% Central costs (4.1) (3.7) +11% Adjusted operating profit 3.8 5.1 -25% -21% Adjusted
Slide 8: Net debt
Net debt • 31 December 2024 net debt of £15.3m reflects 31 Dec 2024 30 Jun 2024 31 Dec 2023 trading for the period and the impact of an Net debt £15.3m £13.3m £10.8m exceptional bad debt expense. Average month end Net finance costs £1.6m £0.8m £1.6m net debt in 2024 of £12.1m (2023 £7.9m). • Headroo
Slide 9: Operating review
Empresaria Operating review
Slide 10: UK & Europe
UK & Europe 2024 % change 23% £m 2024 2023 % change (CC LFL) 25% Revenue 112.7 116.8 -4% +1% 2023 Net fee income 22.7 24.9 -9% -6% 75% 77% Adjusted operating profit 2.7 3.0 -10% -10% % of Group net fee income 44% 43% Permanent Temporary & contract • UK NFI down 9% 2024 • Permanent placements continu
Slide 11: APAC
APAC 2024 % change £m 2024 2023 % change (CC LFL) 40% 35% Revenue 45.5 51.9 -12% -4% 2023 65% 60% Net fee income 10.1 13.6 -26% -13% Adjusted operating loss (0.7) (0.8) +13% +0% % of Group net fee income 20% 23% Permanent Temporary & contract • Wider market challenges had a greater impact in 2024 af
Slide 12: Americas
Americas 2024 10% % change £m 2024 2023 % change (CC LFL) 26% Revenue 62.2 55.9 +11% +23% 2023 Net fee income 6.0 6.1 -2% +5% 74% Adjusted operating profit/(loss) 0.1 (0.9) +111% +111% 90% % of Group net fee income 11% 10% Permanent Temporary & contract • Some good progress in the region with growth
Slide 13: Offshore Services
Offshore Services % change £m 2024 2023 % change (CC LFL) Revenue 26.9 26.9 +0% +4% Net fee income 12.7 14.0 -9% -6% Adjusted operating profit 5.8 7.5 -23% -19% % of Group net fee income 25% 24% • Market conditions have resulted in a first decline in net fee income since 2020. • Reduction in 2024 pr
Slide 14: Our accelerated strategy
Empresaria Our accelerated strategy
Slide 15: Our accelerated strategy
Our accelerated strategy • Our three pillars for growth remain: 1. Focus on our core sectors of IT, Professional and Healthcare 2. Diversifying our service offering to clients 3. Continued growth in Offshore Services • Our acceleration refines pillar 1 to focus on the UK and the US creating a stream
Slide 16: UK and US opportunity
UK and US opportunity • The UK and the US are two of the largest staffing markets and provide Adjusted operating profit – UK + US (£m) significant opportunity for growth, cross-selling, and operational synergies. 4.0 • Our operations have: • A strong presence with all 3 core sectors represented in t
Slide 17: Offshore Services
Offshore Services • Offshore Services is a differentiator from our peers, and maximising the value of this operation is one of our key pillars. • Priorities for 2025 include: • Continued investment in our sales team to drive accelerated growth as and 25% net fee income compound when the staffing mar
Slide 18: Delivering value from non-core
Delivering value from non-core • Non-core operations are expected to be sold over the next two years and to generate significant sales value • These operations contributed £4.5m to the Group’s adjusted operating profit in 2024 • 12 operations to be sold, the vast majority of operations were profitab
Slide 19: Summary
Empresaria Summary
Slide 20: Summary
Summary • Relatively solid performance in 2024 in a very weak market • No significant signs of market recovery, and we do not assume any significant improvement in 2025 • Focussed on improving performance in the current environment • Our accelerated strategy will drive clear benefits over the next f
Slide 21: Empresaria
Empresaria 21
Slide 22: Appendices
Empresaria Appendices 22
Slide 23: Income statement
Income statement Year ended 31 December % Change £m 2024 2023 % Change (constant currency) Revenue 246.2 250.3 -2% +5% Net fee Income 50.4 57.5 -12% -6% Administrative costs (46.6) (52.4) Adjusted operating profit* 3.8 5.1 -25% -21% Net finance costs (1.6) (1.6) Adjusted profit before tax* 2.2 3.5 -
Slide 24: Balance sheet
Balance sheet As at 31 December £m 2024 2023 Goodwill and other intangibles 32.3 36.6 Trade and other receivables 39.7 43.5 Cash and cash equivalents 17.2 17.1 Right-of-use assets 5.9 6.4 Other assets 6.0 9.3 Total assets 101.1 112.9 Trade and other payables (27.8) (31.5) Borrowings (32.5) (27.9) Le
Slide 25: Cash flow statement
Cash flow statement Year ended 31 December £m 2024 2023 Loss for the period (8.9) (1.3) Depreciation, amortisation, fair value charge on acquisition of non-controlling shares, impairment of 10.6 9.4 goodwill, loss on sale of subsidiaries and share-based payments Tax and interest 5.3 3.0 Working capi
Slide 26: Shareholder information
Shareholder information • Shares in issue – 49.9m ordinary shares • Market capitalisation - £13.2m (26 March 2025) • Nil vested options, 5.0m unvested options (3 year performance criteria), 0.8m currently held in EBT • Significant shareholders set out below (as at January 2025) Shareholder Number of
Slide 27: Cautionary Statement
Cautionary Statement The information contained in this presentation is not audited, is for personal use and informational purposes only and is not intended for distribution to, or use by, any person or entity in any jurisdiction in any country where such distribution or use would be contrary to law