Empresaria Group Plc · LSE:EMR
Empresaria — H1 2023 Earnings Presentation
25 slides from Empresaria's earnings presentation, August 2023
Slide 1: Investor Presentation: 2023 Half Year Results
Investor Presentation 2023 Half Year Results, August 2023 Rhona Driggs Tim Anderson Chief Executive Officer Chief Financial Officer
Slide 2: Welcome
Welcome 03 Overview 06 Strategy update Rhona Driggs 08 Financial review Chief Executive Officer 11 Operating review Tim Anderson Chief Financial Officer 17 Outlook 20 Appendices 2
Slide 3: Overview
Overview Empresaria
Slide 4: Overview
Overview • Challenging market conditions from H2 2022 continued into 2023 impacting net fee income • Reduced by 9% year-on-year to £29.7m against a strong comparator • Offshore services up 15% • Permanent placement down 24% • Temporary and contract down 8% • Adjusted operating profit down 71% year-o
Slide 5: Operating highlights
Operating highlights • Challenging market conditions • Trends seen in 2022 H2 continued into 2023 H1 • No significant or sustained signs of improvement – will continue to impact H2 • Managing our cost base • Higher cost base at start of 2023 compared to H1 2022 - Investment in headcount to meet clie
Slide 6: Strategy update
Empresaria Strategy update
Slide 7: Update on Strategic Objectives
Update on Strategic Objectives Objective 2023 priorities (from annual report) 2023 progress Build scale in key • Launch of Professional sector operation in US • US Professional operation launched markets and sectors • Implementation of go-to-market branding strategy • Soft launch of Empresaria Solut
Slide 8: Financial review
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Slide 9: Summary income statement
Summary income statement % change £m 2023 2022 % change (constant currency) Revenue 125.7 129.8 -3% -6% Net fee income 29.7 32.6 -9% -10% Administrative costs (28.4) (28.1) +1% Adjusted operating profit – Regions 3.7 6.8 -46% Central costs (2.4) (2.3) +4% Adjusted operating profit 1.3 4.5 -71% -71%
Slide 10: Adjusted net debt
Adjusted net debt • Net debt increased slightly to £8.7m 30 Jun 2023 31 Dec 2022 30 June 2022 reflecting H1 cash outflows including the Adjusted net debt £8.7m £7.9m £10.8m Group’s dividends, capex and tax in the Headroom (exc. invoice financing) £18.4m £17.9m £14.8m period as well as some adverse m
Slide 11: Operating review
Empresaria Operating review
Slide 12: A global diversified staffing group
A global diversified staffing group • Offshore Services increased to 23% of NFI • Temp to perm ratio increased to 62:38 (2022: 57:43) reflecting the weaker perm performance • Sector weighting reflects the weaker performances in Professional, IT and Healthcare and the strength of Offshore Services Re
Slide 13: UK & Europe
UK & Europe 2023 % change £m 2023 2022 % change (constant 25% currency) 34% Revenue 58.7 63.2 -7% -10% 2022 66% Net fee income 12.6 14.5 -13% -15% 75% Adjusted operating profit 0.9 2.0 -55% -55% % of Group net fee income 42% 44% Permanent Temporary & contract • Weakest results were in the UK with ne
Slide 14: APAC
APAC 2023 % change £m 2023 2022 % change (constant currency) 36% 35% Revenue 26.0 23.0 +13% +15% 2022 65% Net fee income 7.3 7.9 -8% -8% 64% Adjusted operating (loss)/profit (0.6) 0.5 -220% -220% % of Group net fee income 24% 24% Permanent Temporary & contract • Demand from technology companies (for
Slide 15: Americas
Americas 2023 % change £m 2023 2022 % change (constant 29% currency) 35% Revenue 28.4 32.7 -13% -19% 2022 65% Net fee income 3.4 4.6 -26% -31% 71% Adjusted operating (loss)/profit (0.3) 0.8 -138% -133% % of Group net fee income 11% 14% Permanent Temporary & contract • US the main driver of results 2
Slide 16: Offshore Services
Offshore Services 0% 2023 % change £m 2023 2022 % change (constant currency) 2% Revenue 13.2 11.7 +13% +16% 2022 Net fee income 7.0 6.1 +15% +17% 98% Adjusted operating profit 3.7 3.5 +6% +9% 100% % of Group net fee income 23% 18% Temporary & contract Offshore Services • Solid net fee income growth:
Slide 17: Outlook
Empresaria 17
Slide 18: Outlook
Outlook • Current market conditions expected to continue to impact the rest of the year • Continuing to keep costs under review - maintaining the resources required to maximise opportunities as and when confidence returns • Drivers that will benefit when market confidence improves – relatively low u
Slide 19: Empresaria
Empresaria 19
Slide 20: Appendices
Empresaria Appendices 20
Slide 21: Income statement
Income statement Six months ended 31 December % Change £m 2023 2022 % Change (constant currency) Revenue 125.7 129.8 -3% -6% Net fee Income 29.7 32.6 -9% -10% Administrative costs (28.4) (28.1) Adjusted operating profit* 1.3 4.5 -71% -71% Interest (0.8) (0.5) Adjusted profit before tax* 0.5 4.0 -88%
Slide 22: Balance sheet
Balance sheet As at 30 June £m 2023 2022 Property, plant and equipment and right-of use assets 8.0 8.9 Goodwill and other intangibles 38.6 40.0 Trade and other receivables 44.4 48.8 Cash and cash equivalents 19.6 23.1 Deferred tax assets 5.2 4.2 Total assets 115.8 125.0 Trade and other payables (33.
Slide 23: Cash flow statement
Cash flow statement Six months ended 31 December £m 2023 2022 (Loss)/profit for the year (0.3) 2.0 Depreciation, amortisation, fair value charge on acquisition of non-controlling shares, share-based 4.3 4.0 payments and impairment of goodwill and other intangible assets Tax and interest 0.9 1.8 Work
Slide 24: Shareholder information
Shareholder information • Shares in issue – 49.9m ordinary shares • Market capitalisation - £20.2m (21 August 2023) • 0.6m vested options (1.0m currently held in EBT), 3.8m unvested options (3 year performance criteria) • Significant shareholders set out below (as at 30 June 2023) Shareholder Number
Slide 25: 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