Empresaria Group Plc · LSE:EMR
Empresaria — Investor Presentation (March 2017)
28 slides from Empresaria's investor presentation, March 2017
Slide 1: Investor Presentation March 2017
Global Focus, Local Presence Investor Presentation March 2017 Joost Kreulen Chief Executive Officer Spencer Wreford Group Finance Director
Slide 2: Cautionary Statement
Global Focus, Local Presence 1 Cautionary Statement The information contained in this presentation is not audited, is past trends or activities should not be taken as a representation for personal use and informational purposes only and is not that such trends or activities will continue in the futu
Slide 3: Empresaria is…
Global Focus, Local Presence 2 Empresaria is….. an international specialist staffing Group, following a multi-branded strategy to address global talent shortages
Slide 4: Overview of the year
Global Focus, Local Presence 3 Overview of the year Diversified business model delivers record profit Record adjusted profit before tax of £9.2m Fourteen consecutive quarters of net fee income growth Five consecutive years of double digit % growth in adjusted EPS Adjusted PBT (£m) Adjusted diluted E
Slide 5: Overview of the year: Delivering against strategy
Global Focus, Local Presence 4 Overview of the year Delivering against strategy Progress against 5 year targets. Debt to debtors expected to hit 2018 target of 25% Two investments made in high long-term growth sectors Pharmaceutical Strategies successfully integrated Net fee income growth Conversion
Slide 6: Overview of the year: Further de-risking the business
Global Focus, Local Presence 5 Overview of the year Further de-risking the business % of net fee income from temporary recruitment increases to 60% Geographic & sector diversification improves (net fee income charts below) Diversified model mitigates against difficult markets UK (32%) Germany & Aust
Slide 7: Highlights for 2016
Global Focus, Local Presence 6 Highlights for 2016 • Revenue growth of 44% (33% constant currency) • Net fee income growth of 20% (10% constant currency) • Conversion ratio increases to 16.6% - fifth year in a row of increase • Full benefit from Pharmaceutical Strategies – invested in business for f
Slide 8: Financial summary
Global Focus, Local Presence 7 Financial summary £’m 2016 2015 % var Constant currency % var Revenue 270.4 187.3 44% 33% Permanent revenue 26.5 24.7 7% 0% Temporary revenue 243.9 162.6 50% 37% Net fee income 59.0 49.2 20% 10% Adjusted operating profit* 9.8 8.0 23% 11% Conversion ratio 16.6% 16.3% Ad
Slide 9: Revenue analysis
Global Focus, Local Presence 8 Revenue analysis Temporary revenue +50% (+37% in constant currency) Permanent revenue +7% (0% constant currency) • Strong results from Germany, Japan, India, Australia, • Strong results from India, China, Japan, Australia, Chile, UK T&I & Finland Indonesia & Malaysia •
Slide 10: Net fee income Conversion ratio
Global Focus, Local Presence 9 Net fee income Conversion ratio Net fee income +20% (+10% constant currency) Conversion ratio of 16.6% • Target of +10% average growth for 5 year plan • Average staff numbers increased from 1,096 to 1,282 • Driven by investments and currency • Develop scale of Group to
Slide 11: Net debt
Global Focus, Local Presence 10 Total net debt (£m) Net debt 0.0 2012 2013 2014 2015 2016 (2.0) Net debt, adding back pilot bonds held by Rishworth, stands at £15.7m (2015: £7.3m) (4.0) (6.0) Net debt to debtors ratio 38% (2015: 23%) (8.0) Net debt:EBITDA of 1.5x (2015: 0.8x) (10.0) (12.0) R
Slide 12: Investments
Global Focus, Local Presence Investments
Slide 13: Rishworth Aviation
Global Focus, Local Presence 12 Rishworth Aviation • Leading specialist international recruitment company supplying leased pilots to airlines • Pilots typically on 3-5 year contracts so good visibility of earnings • Positive working capital with low debtor days and pilot bonds held as cash • Global
Slide 14: ConSol Partners
Global Focus, Local Presence 13 ConSol Partners • Leading specialist IT staffing company supplying IT professionals on temp and perm basis • Communications & mobile, Cloud technologies and Digital supply chain – high growth niche sectors • Servicing clients in the UK and EU from London base and US m
Slide 15: Looking forward
Global Focus, Local Presence Looking forward
Slide 16: A strategy delivering growth
Global Focus, Local Presence 15 A strategy delivering growth Develop leading brands with Develop - organic investment in sector expertise existing brands - Increase headcount in existing brand - Professional & specialist roles - Add a new vertical specialism - Sectors with long term growth prospects
Slide 17: Summary and outlook
Global Focus, Local Presence 16 Summary and outlook • Diversified business model delivers growth and resilience • Consistent growth in net fee income, conversion ratio, profit and adjusted earnings per share Growth in net fee income of 20%, ahead of average 10% target Conversion ratio improvemen
Slide 18: Q&A
Global Focus, Local Presence 17 Q&A
Slide 19: Appendices
Global Focus, Local Presence 18 Appendices
Slide 20: Income statement – Year ended December 2016
Global Focus, Local Presence 19 Income statement – Year ended 31 December 2016 LFL £m 2016 2015 Change currency Revenue 270.4 187.3 44% 33% Overheads include £0.3m of acquisition related costs. Net fee Income 59.0 49.2 20% 10% Interest costs increased from part-funding investments. Overheads (49.2)
Slide 21: Balance sheet – December 2016
Global Focus, Local Presence 20 Balance sheet – 31 December 2016 £m 2016 2015 Property, plant & equipment 1.6 1.5 Goodwill and intangibles 56.8 32.5 Capital expenditure of £0.8m on fixed assets. Deferred tax asset 1.0 0.9 59.4 34.9 Goodwill and intangibles increased for investments and currency move
Slide 22: Cash flow – year ended December 2016
Global Focus, Local Presence 21 Cash flow – year ended 31 December 2016 £m 2016 2015 Cash generated from operations was £11.9m, up on the prior year Profit for the period 4.4 4.5 due to higher operating profit and working capital inflow (includes Depreciation, amortisation & share based benefit of i
Slide 23: Business model
Global Focus, Local Presence 22 Business model Multi-branded: Operational bias: 4 1 Different brands used to Bias to temporary target different sectors. recruitment to provide Each brand has flexible staffing solutions expertise and knowledge that are generally more of their market. stable throughou
Slide 24: Diversified by geography: 4 regions, 19 countries
Global Focus, Local Presence 23 Diversified by geography: 4 regions, 19 countries UK Continental Asia Pacific Americas Europe 32% of group NFI 28% of group NFI 32% of group NFI 8% of group NFI UK Germany Japan Indonesia Chile Austria India Australia Mexico Finland UAE Thailand USA Singapore China Ho
Slide 25: Diversified by sector
Global Focus, Local Presence 24 Diversified by sector Aviation Technical & Industrial IT, Digital & Design Professional 4% of Group 39% of Group 20% of Group services 10% of Group New Zealand, Sweden UK, Germany, Austria, UAE UK, Hong Kong, India, Japan, Australia, USA UK, Singapore Retail Executive
Slide 26: Attract and retain key management
Global Focus, Local Presence 25 Attract and retain key management • Management own shares in their brands Management • Attract and retain key staff Equity • Brand management incentivised to grow long term profits • Decentralised structure leaves operational responsibility with local managers • Share
Slide 27: Directors
Global Focus, Local Presence 26 Directors Board has extensive knowledge of the staffing industry with a combined experience of 100 years Tony Martin – Chairman Tony served as Chairman and CEO of Select Appointments and Vedior NV, building one of the world’s largest recruitment companies, before it w
Slide 28: Shareholder information
Global Focus, Local Presence 27 Shareholder information Shares in issue: 49,019,132 ordinary shares Market capitalisation: £70 million Outstanding options: 3.3m (6.7% of shares in issue) Significant shareholders (updated on 22 February 2017): Anthony Martin 13,924,595 28% Liontrust Asset Management
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