Empresaria Group Plc · LSE:EMR
Empresaria — FY2023 Earnings Presentation
24 slides from Empresaria's earnings presentation, March 2024
Slide 1: Investor Presentation: Full Year Results 2023
Investor Presentation 2023 Full Year Results, March 2024 Rhona Driggs Tim Anderson Chief Executive Officer Chief Financial Officer
Slide 2: Welcome
Welcome 03 Overview & strategy update 06 Financial review Rhona Driggs 09 Operating review Chief Executive Officer 15 Outlook Tim Anderson Chief Financial Officer 18 Appendices 2
Slide 3: Overview & strategy update
Empresaria Overview & strategy update
Slide 4: Overview
Overview • Challenging market conditions continued throughout 2023 which impacted net fee income • Reduced by 12% year-on-year to £57.5m • Permanent placement down 25% • Temporary and contract down 10% • Offshore services growth of 8% proving its strength and resilience • Adjusted operating profit d
Slide 5: Operating and strategic updates
Operating and strategic updates We are focussed on reducing operational complexity while delivering on our three key pillars for growth • Reducing operational complexity and investing in people, process and technology • Streamlined leadership structure – core sectors under a single leader in each co
Slide 6: Financial review
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Slide 7: Summary income statement
Summary income statement % change £m 2023 2022 % change (constant currency) Revenue 250.3 261.3 -4% -4% Net fee income 57.5 65.4 -12% -11% Administrative costs (52.4) (55.2) -5% Adjusted operating profit – Regions 8.8 14.1 -38% Central costs (3.7) (3.9) -5% Adjusted operating profit 5.1 10.2 -50% -4
Slide 8: Adjusted net debt
Adjusted net debt • Average month end net debt in 2023 31 Dec 2023 30 Jun 2023 31 Dec 2022 was £8.3m (2022 £11.0m). Net debt Adjusted net debt £11.1m £8.7m £7.9m increased to £11.1m as at 31 December Headroom (exc. invoice financing) £17.8m £18.4m £17.9m 2023 reflecting working capital outflows towa
Slide 9: Operating review
Empresaria Operating review
Slide 10: A global diversified staffing group
A global diversified staffing group • Offshore Services increased to 24% of NFI • Temp to perm ratio increased to 63:37 (2022: 58:42) reflecting the decline in perm • Sector weighting reflects the weaker performances in Professional, IT and Healthcare and the strength of Offshore Services Region Ser
Slide 11: UK & Europe
UK & Europe 2023 % change £m 2023 2022 % change (constant 25% currency) 32% Revenue 116.8 124.9 -6% -8% 2022 68% Net fee income 24.9 28.4 -12% -13% 75% Adjusted operating profit 3.0 4.7 -36% -38% % of Group net fee income 43% 43% Permanent Temporary & contract • The weakest results were in the UK wi
Slide 12: APAC
APAC 2023 % change £m 2023 2022 % change (constant currency) 35% 35% Revenue 51.9 49.9 +4% +9% 2022 65% Net fee income 13.6 15.8 -14% -10% 65% Adjusted operating (loss)/profit (0.8) 0.8 -200% -214% % of Group net fee income 23% 24% Permanent Temporary & contract • Demand from technology companies (f
Slide 13: Americas
Americas 2023 % change £m 2023 2022 % change (constant 26% currency) 32% Revenue 55.9 62.7 -11% -12% 2022 68% Net fee income 6.1 8.7 -30% -31% 74% Adjusted operating (loss)/profit (0.9) 1.5 -160% -160% % of Group net fee income 10% 13% Permanent Temporary & contract • The US was the main driver of r
Slide 14: Offshore Services
Offshore Services 0% 2023 % change £m 2023 2022 % change (constant currency) 3% Revenue 26.9 25.3 +6% +13% 2022 Net fee income 14.0 13.5 +4% +9% 97% Adjusted operating profit 7.5 7.1 +6% +12% 100% % of Group net fee income 24% 20% Temporary & contract Offshore Services • Solid net fee income and pro
Slide 15: Outlook
Empresaria 15
Slide 16: Outlook
Outlook • We expect current market conditions to continue throughout H1 2024 – relatively low unemployment rates and ongoing skills shortages should accelerate recovery when it comes. • We are closely managing costs, although we are making targeted investments in sales to ensure we maximise opportun
Slide 17: Empresaria
Empresaria 17
Slide 18: Appendices
Empresaria Appendices 18
Slide 19: Update on Strategic Objectives
Update on Strategic Objectives Objective 2023 progress 2024 priorities Build scale in our key • Launch of Professional in US under lead Professional brand. • Alignment of German operations under a single leadership markets and sectors • Merged UK marketing brand into lead Professional brand. structu
Slide 20: Income statement
Income statement Year ended 31 December % Change £m 2023 2022 % Change (constant currency) Revenue 250.3 261.3 -4% -4% Net fee Income 57.5 65.4 -12% -11% Administrative costs (52.4) (55.2) Adjusted operating profit* 5.1 10.2 -50% -48% Interest (1.6) (1.2) Adjusted profit before tax* 3.5 9.0 -61% Exc
Slide 21: Balance sheet
Balance sheet As at 31 December £m 2023 2022 Goodwill and other intangibles 36.6 40.1 Trade and other receivables 44.7 46.7 Cash and cash equivalents 17.1 22.3 Right-of-use assets 6.4 7.5 Other assets 8.1 7.2 Total assets 112.9 123.8 Trade and other payables (31.5) (33.3) Borrowings (27.9) (29.6) Le
Slide 22: Cash flow statement
Cash flow statement Year ended 31 December £m 2023 2022 (Loss)/profit for the year (1.3) 4.8 Depreciation, amortisation, exceptional items, fair value charge on acquisition of non-controlling 9.4 8.2 shares, impairment of goodwill and share-based payments Tax and interest 3.0 4.0 Working capital (0.
Slide 23: Shareholder information
Shareholder information • Shares in issue – 49.9m ordinary shares • Market capitalisation - £18.2m (22 March 2024) • Nil vested options, 3.8m unvested options (3 year performance criteria), 0.8m currently held in EBT • Significant shareholders set out below (as at 31 December 2023) Shareholder Numbe
Slide 24: 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