Empresaria Group Plc · LSE:EMR
Empresaria — FY2021 Earnings Presentation
32 slides from Empresaria's earnings presentation, March 2022
Slide 1: Investor Presentation: 2021 Full Year Results
Investor Presentation 2021 Full Year Results March 2022 Rhona Driggs Tim Anderson Chief Executive Officer Chief Financial Officer 1
Slide 2: Contents
Contents Overview 3 Strategy update 6 Financial review 11 Operating review 14 2022 priorities and outlook 22 Appendices 26 2
Slide 3: Overview
Overview 3
Slide 4: Overview
Overview Strong recovery in profits – adjusted profit before tax up 65% on prior year Progressive growth in net fee income H2 up 26% in constant currency on prior year Full year up 14% in constant currency on prior year – growth in all 5 key sectors Adjusted net debt of £14.0m, up only £0.
Slide 5: Operating highlights
Operating highlights Investment to drive future growth Appointment of three experienced regional leaders and creation of regional structure New Chief Marketing Officer – focus on elevating Empresaria brand and improving our overall branding and communication strategy Investment in common fro
Slide 6: Strategy update
Strategy update 6
Slide 7: Accelerating the delivery of the Group's strategy
Accelerating the delivery of the Group‘s strategy Rafael Garrick Julie Smith Moyano Cooper Regional Regional President CEO CEO North UK & Europe APAC America More than 30 years staffing industry More than 15 years staffing industry More than 20 years experience in experience with significant e
Slide 8: Progress on strategic objectives
Progress on strategic objectives Strategic objective 2021 progress Build scale in key markets and Enhanced leadership team sectors Implemented regional sales strategy in UK & Europe Successful trial of Philippines base for Offshore Recruitment Services Embedded improvements to operating mode
Slide 9: Progress on strategic objectives
Progress on strategic objectives Strategic objective 2021 progress Increase productivity and Ongoing investment in technology implementation with around half efficiency of our operations now on a common front office platform Operating model improvements with dedicated sales and recruitment teams
Slide 10: Technology case study
Technology case study In 2021 the Group accelerated the rollout of its global front office system (Bullhorn) with an additional nine operations added to the platform. Around half the Group is now on the platform, with a number more implementations planned. The benefits of Bullhorn are wide reaching,
Slide 11: Financial review
Financial review 11
Slide 12: Summary income statement
Summary income statement % change £m 2021 2020 % change (constant currency) Revenue 258.4 256.5 +1% +4% Net fee income 59.5 54.0 +10% +14% Administrative costs (50.2) (47.8) +5% Adjusted operating profit – Sectors 14.3 9.4 +52% Central costs (5.0) (3.2) +56% Adjusted operating profit 9.3 6.2 +50% +6
Slide 13: Adjusted net debt
Adjusted net debt 31 Dec 30 June 31 Dec Net debt increased slightly from 31 2021 2021 2020 December 2020 with working capital outflows from improved trading Adjusted net debt £14.0m £16.5m £13.6m outweighing the benefit of improved profits. Headroom (exc invoice financing) £12.9m £12.4m £17.6m H
Slide 14: Operating review
Operating review 14
Slide 15: A global diversified staffing Group
A global diversified staffing Group Healthcare increased to 7% of Group NFI Permanent (34%, 2020: Americas increased to 16% of Group NFI reflecting 32%) success of Healthcare and IT in US Temporary and Contract 75% of net fee income from outside of UK (55%, 2020: 59%) Temp/perm split reduced
Slide 16: Professional
Professional % change NFI split £m 2021 2020 % change (constant 24% 2021 currency) 33% Revenue 45.6 55.3 -18% -18% 2020 Net fee income 17.6 15.4 +14% +16% 67% Adjusted operating profit 1.3 0.2 +550% +550% 76% % of Group net fee income 29% 28% Perm Temp Strong growth across all operations bar aviat
Slide 17: IT
IT % change NFI split £m 2021 2020 % change (constant 2021 currency) 55% Revenue 37.5 41.8 -10% -7% 2020 57% Net fee income 13.3 12.7 +5% +10% 43% 45% Adjusted operating profit 3.0 1.8 +67% +76% % of Group net fee income 22% 23% Perm Temp Strong growth in profits across all locations Strong NFI
Slide 18: Healthcare
Healthcare % change NFI split £m 2021 2020 % change (constant 7% currency) 8% Revenue 26.9 13.2 +104% +115% 2020 Net fee income 4.2 2.5 +68% +75% 92% 2021 Adjusted operating profit 1.4 0.4 +250% +250% 93% % of Group net fee income 7% 5% Perm Temp Record year for this sector with significant growth
Slide 19: Property, Construction & Engineering
Property, Construction & Engineering % change NFI split £m 2021 2020 % change (constant 14% currency) 14% Revenue 3.4 3.6 -6% -6% 2020 Net fee income 0.7 0.7 -% -% 86% 2021 Adjusted operating loss (0.1) (0.2) 86% % of Group net fee income 1% 1% Perm Temp Sector performance in line with 2020 Dema
Slide 20: Commercial
Commercial % change NFI split £m 2021 2020 % change (constant 3% currency) 3% Revenue 131.0 132.3 -1% +4% 2020 Net fee income 17.2 17.2 -% +4% 97% 2021 Adjusted operating profit 4.6 4.6 -% +5% 97% % of Group net fee income 29% 32% Perm Temp Overall performance in line with 2020 with growth in cons
Slide 21: Offshore Recruitment Services
Offshore Recruitment Services % change NFI split £m 2021 2020 % change (constant 1% currency) 10% 3% Revenue 15.3 10.9 +40% +50% 2020 Net fee income 7.7 6.1 +26% +35% 87% 2021 Adjusted operating profit 4.1 2.6 +58% +71% 99% % of Group net fee income 12% 11% Perm Temp ORS Very strong year with reco
Slide 22: 2022 priorities and outlook
2022 priorities and outlook 22
Slide 23: 2022 priorities
2022 priorities Strategic objective 2022 priorities Build scale in key markets and Create and implement regional sales strategies in all regions sectors Expand IT offering in Asia Pacific region Establish Philippines as a second country hub for Offshore Recruitment Services Targeted investme
Slide 24: 2022 priorities
2022 priorities Strategic objective 2022 priorities Increase productivity and Continue implementation of front office technology efficiency Commence second phase of technology project focussed on increasing productivity through use of partnership products Continue to drive internal utilisation
Slide 25: Outlook
Outlook Continuing to invest in the business Investing in sales and delivery teams in areas where we see high demand and opportunities to grow Embedding regional structure and regional strategies Continue technology rollout – more locations planned for 2022 Skills shortages and wage inflat
Slide 26: Appendices
Appendices 26
Slide 27: Our sectors and markets
Our sectors and markets Continental UK Asia Pacific Americas Europe Sales and Sales and Professional Sales operations operations Sales and Sales and Sales and IT Sales operations operations operations Sales and Sales and Healthcare operations operations Property, Construction Sales and & Engineering
Slide 28: Income statement
Income statement Year ended 31 December 2021 % Change £m 2021 2020 % Change (constant currency) Revenue 258.4 256.5 +1% +4% Net fee Income 59.5 54.0 +10% +14% Administrative costs (50.2) (47.8) Adjusted operating profit* 9.3 6.2 +50% +60% Interest (0.7) (1.0) Adjusted profit before tax* 8.6 5.2 +65%
Slide 29: Balance Sheet
Balance Sheet As at 31 December 2021 £m 2021 2020 Property, plant and equipment and right-of use assets 9.1 10.6 Limited new leasing activity in 2021 Goodwill and other intangibles 39.8 43.0 Impact of 2021 impairments, amortisation and FX Trade and other receivables 50.5 44.9 Increase in trade recei
Slide 30: Cash flow statement
Cash flow statement Year ended 31 December 2021 £m 2021 2020 Profit/(loss) for the year 2.9 (3.2) Depreciation, amortisation, fair value charge on acquisition of non-controlling shares, share-based payments and 9.2 14.2 impairment of goodwill and other intangible assets Tax and interest 3.8 2.2 Work
Slide 31: Shareholder information
Shareholder information Shares in issue – 49.9m ordinary shares Market capitalisation - £39.4m (15 March 2022) 0.3m vested options (0.6m currently held in EBT), 3.8m unvested options (3 year performance criteria) Significant shareholders set out below (updated February 2022) Number of Shareh
Slide 32: 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