Empresaria Group Plc · LSE:EMR
Empresaria — Investor Presentation (March 2015)
21 slides from Empresaria's investor presentation, March 2015
Slide 1: Investor Presentation – March 2015
Investor Presentation – March 2015 Joost Kreulen – Chief Executive Officer Spencer Wreford – Group Financial Director
Slide 2: Cautionary Statement
Global Focus, Local Presence 1 Cautionary Statement The information contained in this presentation is statements regarding past trends or activities not audited, is for personal use and informational should not be taken as a representation that such purposes only and is not intended for distribution
Slide 3: An international specialist staffing Group
Global Focus, Local Presence 2 An international specialist staffing Group Multi-branded Management equity Growth Temporary markets bias 2
Slide 4: What we do
Global Focus, Local Presence 3 What we do Recruitment focus Diversified & balanced approach 2014 net fee income Services: Regions: Balance between 95% of net fee income from mature stable 31% 35% staffing services (2014) markets and higher growth emerging 34% permanent sales markets 34% 62% temporar
Slide 5: Strategy focused on growth
Global Focus, Local Presence 4 Strategy focused on growth • New investments Develop leading brands with • BW&P (Technical & Industrial), Ball and Hoolahan (UK, IT & Design) sector expertise • Divesting non-core assets - now at 18 key brands Maintain diversification and balance by geography and • Fir
Slide 6: Highlights
Global Focus, Local Presence 5 Highlights • NFI up 5% (11% on constant currency basis) • PBT up 20% (31% on constant currency) Financial delivery • EPS up 44% • Six consecutive quarters of underlying NFI growth • Final dividend increased by 100% Continued delivery • Expansion in key economic centres
Slide 7: Financial highlights
Global Focus, Local Presence 6 Financial highlights 2014 2013 % var L-F-L % var Revenue £187.9m £194.4m (3%) 2% Permanent revenue £19.4m £18.1m 7% Temporary revenue £168.6m £176.4m (4%) Net fee income £44.6m £42.6m 5% 11% Adjusted operating profit* £6.6m £6.0m 10% 16% Conversion ratio 14.7% 14.2% Ad
Slide 8: Summary of performance
Global Focus, Local Presence 7 Summary of performance Continental Rest of Net fee income (£’m) UK Europe the World Total 2013 15.8 13.9 12.9 42.6 Acquisitions/disposals (0.5) - 1.3 0.8 Branch closures (0.3) (0.3) - (0.6) Currency impact - (0.7) (1.6) (2.3) Underlying growth 0.9 2.1 1.1 4.1 2014 15.9
Slide 9: Creates value for shareholders
Global Focus, Local Presence 8 Creates value for shareholders Group vision is to generate sustainable growth in EPS Adjusted EPS (p) 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2011 2012 2013 2014
Slide 10: The growth opportunity
Global Focus, Local Presence 9 The growth opportunity Economic growth Structural growth in Deliver growth in German staffing market net fee income Organic opportunities - 4 strands of growth Improve conversion Bolt-on acquisitions ratio Operational gearing
Slide 11: 5 year financial targets
Global Focus, Local Presence 10 5 year financial targets Board has the following objectives: Organic growth Achieve average supplemented by growth in NFI of selective +10% investments Improve Debt to debtors conversion ratio ratio of 25% to 20% 10
Slide 12: Summary and outlook
Global Focus, Local Presence 11 Summary and outlook Delivery on stated strategy Continued focus on five key drivers of the growth strategy Driving KPIs All regions delivering growth in NFI Conversion ratio improvement continues, target of 20% remains Strong growth in PBT despite negative cur
Slide 13: Q&A
Global Focus, Local Presence 12 Q&A
Slide 14: Appendices
Global Focus, Local Presence 13 Appendices
Slide 15: Income statement - 2014
Global Focus, Local Presence 14 Income statement - 2014 Constant £m 2014 2013 Change currency Revenue down 3%, reflecting focus on higher margin temporary business which has boosted net fee income. Permanent sales up 7%. Negative currency impact Revenue 187.9 194.4 (3%) 2% (Indonesia, Japan and Euro
Slide 16: Balance sheet – 31 December 2014
Global Focus, Local Presence 15 Balance sheet – 31 December 2014 £m 2014 2013 Capital expenditure of £1.0m on fixed assets. Property, plant & equipment 1.2 1.0 Goodwill and intangibles 26.0 26.0 Goodwill increased for acquisitions. Deferred tax asset 0.9 0.6 28.1 27.6 Average debtor days 52 (2013 50
Slide 17: Cash flow – 2014
Global Focus, Local Presence 16 Cash flow – 2014 £m 2014 2013 Profit for the period 3.8 2.8 Depreciation, amortisation & share based payments Cash generated from operations was £6.7m, following a 1.1 1.2 £0.5m investment in working capital and £0.3m cash Tax and interest added back spend on exceptio
Slide 18: Operating in Major Markets
Global Focus, Local Presence 17 Operating in Major Markets UK Rest of the World 35% 2014 Gross profit 31% 2014 Gross profit 3rd largest staffing market Japan is 2nd largest staffing Mature market delivering market good returns Access to high growth markets Mix of temp and perm (50% Continental Europ
Slide 19: Management equity philosophy
Global Focus, Local Presence 18 Management equity philosophy Management capacity and structure established for ongoing growth Committed to incentivising operational management through equity participation in their businesses Helps drive long-term growth and retain/attract key management Only
Slide 20: Directors
Global Focus, Local Presence 19 Directors Board has extensive knowledge of the staffing industry with a combined experience of 100 years Anthony Martin – Chairman Anthony served as Chairman and CEO of Select Appointments and Vedior NV, building one of the world’s largest recruitment companies, befor
Slide 21: Shareholder information
Global Focus, Local Presence 20 Shareholder information Shares in issue: 44,562,847 ordinary shares Market capitalisation: £21.6 million Outstanding options: 2.8m (6.4% of shares in issue) Significant shareholders (updated on 4 March): Anthony Martin 12,924,595 29% Caledonia Investments plc 5,299,26
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