Empresaria Group Plc · LSE:EMR
Empresaria — H1 2014 Earnings Presentation
22 slides from Empresaria's earnings presentation, September 2014
Slide 1: Empresaria Group plc
Empresaria Group plc Global Focus, Local Presence Joost Kreulen – Chief Executive Officer September 2014 Spencer Wreford – Group Finance Director
Slide 2: 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
Slide 3: Empresaria Group
Empresaria Group • International Specialist Staffing Group focused primarily on recruitment • Brand-led strategy, where brands are tailored to needs of clients and candidates • In major staffing markets - operating with 20 brands in 6 different sectors across 20 countries • Business is balanced and
Slide 4: International Specialist Staffing Group
International Specialist Staffing Group Providing Temporary and Permanent Staffing Services 2014 H1 Gross profit 6% • Operational mix towards temporary sales 34% (more stable through economic cycle) • Focus on Professional & Specialist job levels (currently 81% of gross profit) 60% • Primarily a rec
Slide 5: Brand-Led Strategy
Brand-Led Strategy Tailored to Needs of Clients and Candidates 2014 H1 Gross profit 13% • Multi-branded model with each brand 3% 44% focussed on different industry sectors 6% • Brands develop in-depth knowledge and 8% expertise in their markets, helping them provide a value added service 11% • Compe
Slide 6: Operates in Major Markets
Operates in Major Markets UK Rest of the World 36% 2014 H1 Gross profit 33% 2014 H1 Gross profit 3rd largest staffing market Japan is 2nd largest staffing Mature market delivering market good returns Continental Europe Access to high growth markets Mix of temp and perm (49% (e.g. Indonesia, Thailand
Slide 7: Strategy for Growth
Strategy for Growth Expand into entirely Increase headcount in an new regions and/or sectors existing brand in an (Organic or External established vertical investment) 4 1 3 2 Increase brand footprint in Increase headcount in an an existing region existing brand in a new vertical 7
Slide 8: Delivering on Strategy
Delivering on Strategy Deliver growth in net fee • Attract and retain best income (target of 10% managers with equity average annual growth) incentive 2014 H1 10% growth in • Invest in brands (organic constant currency (3% development) to build scale reported) and coverage • Growth from professional
Slide 9: H1 Performance
Empresaria Group plc International Specialist Staffing Group H1 Performance
Slide 10: Highlights
Highlights Delivery • NFI up 10% on constant currency basis against • PBT up 41% (constant currency) • EPS up 22% strategy Continued • Four consecutive quarters of underlying NFI growth growth All regions • All regions delivered good underlying growth • Investment into exciting growth areas positive
Slide 11: H1 Financial Highlights
H1 Financial Highlights 2014 2013 % var L-F-L % var Revenue £94.0m £95.6m -2% +4% Net fee income (gross profit) £21.6m £20.9m +3% +10% Adjusted operating profit* £2.4m £2.0m +20% +31% Conversion ratio 10.9% 9.4% +16% Adjusted profit before tax* £2.1m £1.7m +24% +42% Earnings per share 2.2p 1.8p +22%
Slide 12: H1 Performance
H1 Performance Continental Rest of the Net fee income (£’m) UK Europe World Total 2013 7.8 6.7 6.4 20.9 Acquisitions/disposals (0.6) - 0.6 - Branch closures (0.2) (0.3) - (0.5) Currency impact - (0.2) (1.0) (1.2) Underlying growth 0.8 0.6 1.0 2.4 2014 7.8 6.8 7.0 21.6 Underlying growth % 10% 9% 16%
Slide 13: Current Trading and Outlook
Current Trading and Outlook • Delivering on brand led strategy to deliver sustainable growth in EPS • All regions delivering underlying growth in NFI. Market conditions improved against prior year • Costs being controlled. Strong growth in PBT despite currency headwinds • Conversion ratio improvemen
Slide 14: Q&A
Empresaria Group plc International Specialist Staffing Group Q&A
Slide 15: Appendices
Empresaria Group plc International Specialist Staffing Group Appendices
Slide 16: Income Statement – six months to 30 June 2014
Income Statement – six months to 30 June 2014 LFL % £m 2014 2013 Change change Revenue decreased by 2%, with a 10% increase Revenue 94.0 95.6 (2%) 4% in permanent sales and a 3% decrease in temporary sales. On a constant currency basis, Net fee income (gross profit) 21.6 20.9 3% 10% revenue was up 4
Slide 17: Regional H1 performance
Regional H1 performance UK 2014 2013 2012 Revenue £33.6m £33.6m £33.7m Net fee income £7.8m £7.8m £7.9m Adjusted operating profit £1.0m £0.9m £1.1m Conversion ratio 13% 12% 14% Continental Europe 2014 2013 2012 Revenue £37.4m £38.6m £43.3m Net fee income £6.8m £6.7m £8.5m Adjusted operating profit £
Slide 18: Balance Sheet – 30 June 2014
Balance Sheet – 30 June 2014 £m 2014 2013 Property, plant & equipment 1.0 1.2 Capital expenditure of £0.4m on fixed assets. Goodwill and intangibles 26.0 27.2 Deferred tax asset 0.7 1.2 27.7 29.6 Trade and other receivables 29.3 29.4 Average debtor days 52 (2013: 50). Cash and bank balance 5.0 6.6 3
Slide 19: Cash Flow – six months to 30 June 2014
Cash Flow – six months to 30 June 2014 £m 2014 2013 Profit for the period 1.3 1.0 Depreciation and amortisation 0.5 0.5 Tax and interest added back 1.0 0.9 Exceptional items (0.1) (0.5) Share based payments 0.1 0.0 Cash generated from operations was £0.8m, down on Working capital (2.0) 0.6 the prior
Slide 20: Directors
Directors Anthony Martin – Chairman Appointed July 2004 Anthony served as Chairman and CEO of Select Appointments (Holdings) Plc from 1992 to 1999, which he and his team built into a global recruitment business before selling the company to Vedior NV, one of the world’s largest recruitment companies
Slide 21: Management Equity Philosophy
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 executive directors have option
Slide 22: Shareholder Information
Shareholder Information Shares in issue: 44,562,847 ordinary shares Market capitalisation: £22 million Outstanding options: 2.8m (6% of shares in issue) Significant shareholders: Anthony Martin 12,924,595 29.0% Caledonia Investments plc 7,614,264 17.1% Liontrust Asset Management 4,073,468 9.1% Miles