Empresaria Group Plc · LSE:EMR
Empresaria — Investor Presentation (March 2014)
22 slides from Empresaria's investor presentation, March 2014
Slide 1: Investor presentation – March 2014
Investor presentation – March 2014 Joost Kreulen – Chief Executive Officer 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: Highlights
Highlights • Adjusted profit before tax of £5.4m up 17% on 2012 • Adjusted earnings per share of 6.2p up 24% on 2012 • Conversion ratio increased to 14.2% (2012: 12.0%) • £2.3m reduction in reported net debt to £5.8m • Singapore start-up businesses delivered profit after two years of investment • Tu
Slide 4: Financial highlights
Financial highlights 2013 2012 % var L-F-L % var Revenue £194.4m £194.3m - - Net fee income £42.6m £43.9m -3% -2% Adjusted operating profit* £6.0m £5.4m +11% +15% Conversion ratio 14.2% 12.0% +18% Adjusted profit before tax* £5.4m £4.6m +17% +23% Earnings per share 5.2p 3.0p +73% Adjusted earnings p
Slide 5: Regional review - UK
Regional review - UK 2013 2012 % var Net fee income split Revenue £70.7m £66.5m +6% 23% 20% Net fee income £15.8m £16.0m -1% Adjusted operating profit £2.1m £2.2m -5% 6% 12% Conversion ratio 13% 14% 39% • Permanent sales up 2%, temporary sales up 7% Financial IT, digital & design • Brand rationalisa
Slide 6: Regional review – Continental Europe
Regional review – Continental Europe 2013 2012 % var Net fee income split 8% 3% Revenue £76.9m £83.2m -8% Net fee income £13.9m £15.7m -11% Adjusted operating profit £1.8m £1.7m +6% Conversion ratio 13% 11% • Tight cost control delivered an increase in profits 89% IT, digital & design • Restructurin
Slide 7: Regional review – Rest of the World
Regional review – Rest of the World 2013 2012 % var Net fee income split 7% Revenue £46.8m £44.6m +5% 20% Net fee income £12.9m £12.2m +6% 29% Adjusted operating profit £2.1m £1.5m +40% 23% Conversion ratio 16% 12% 21% • Permanent revenue up 12%, temporary revenue up 3% Financial IT, digital & desig
Slide 8: Multibrand philosophy
Multibrand philosophy • Multibrand philosophy is integral part of our success • Differentiates Empresaria from competitors • Brands are tailored to specific markets and business sectors • Helps brands deliver high quality value-added service to clients and candidates • In-depth knowledge of business
Slide 9: Strategy for growth – Brand led
Strategy for growth – Brand led • Organic growth: (1) Increase headcount (2) Entry into new sectors (3) Expansion within an existing geography (4) Entry into new geographies • External investment to enter new sectors or geographies, or help grow an existing brand • Balanced & diversified spread of o
Slide 10: Current trading and outlook
Current trading and outlook • Delivered on what we said we would do Strong growth in profit Operational improvements in Germany and Chile Profit from investment in Singapore Tight control of costs • During the economic downturn we have created a stable platform for growth • UK market conditions and
Slide 11: Appendices
Empresaria Group plc International Specialist Staffing Group Appendices
Slide 12: Income statement – 2013
Income statement – 2013 Income statement Revenue was flat, with a 6% increase in LFL permanent sales and an 0.5% decrease in £m 2013 2012 Change currency temporary sales. Revenue 194.4 194.3 0% 0% Net Fee Income was 3% lower than prior year. In permanent sales there was an Net fee Income 42.6 43.9 (
Slide 13: Balance sheet – 31 December 2013
Balance sheet – 31 December 2013 £m 2013 2012 Capital expenditure of £0.8m on fixed assets. Property, plant & equipment 1.0 1.3 Goodwill and intangibles 26.0 26.6 Goodwill reduced by £452k for Bar 2 business disposal. Deferred tax asset 0.6 1.2 27.6 29.1 Deferred tax asset reduces as losses utilised
Slide 14: Cash flow – 2013
Cash flow – 2013 £m 2013 2012 Profit for the period 2.8 1.9 Depreciation, amortisation & share Cash generated from operations was £7.8m, up on based payments 1.2 1.3 the prior year with a £1.8m working capital inflow Tax and interest added back 2.7 2.5 and £1.0m cash spend on exceptional items. Loss
Slide 15: Background – Who we are
Background – Who we are • International specialist staffing group • Multibrand strategy • Balanced and diversified across geographies & sectors • Management equity philosophy 15
Slide 16: Background - What we do
Background - What we do Net fee income split • Core recruitment focus 10% 31% • Fees are earned when a vacancy is filled • Typically vacancies are on a contingency basis • Temporary bias – generally less volatile during the economic cycle 59% • Other services includes training and Offshore Recruitme
Slide 17: Background – Balanced & diversified
Background – Balanced & diversified Regional Sector Job level net fee income net fee income net fee income 30% 15% 37% 3% 22% 30% 43% 7% 9% 9% 48% 33% 14% Professional Specialist Technical & industrial IT, digital & design General UK Financial Continental Europe Retail Rest of the world Executive se
Slide 18: Background - Why we are in our markets
Background - Why we are in our markets Region Market size Temp/Perm Opportunity GDP growth focus UK 3rd largest staffing Temp bias (53% of Mature market 2014 growth market net fee income) delivering good forecast of 2.5% returns High temp penetration rates Continental Europe Germany is 5th Temp bias
Slide 19: 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 20: Share valuation comparison
Share valuation comparison 40 35 30 25 20 15 10 5 0 Rob Walters Staffline Empresaria Sthree Matchtech Harvey Nash Hays Michael Page Hydrogen Source: Reuters based on 2014 EPS forecasts (March 2014) 20
Slide 21: 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 22: Shareholder information
Shareholder information Shares in issue: 44,562,847 ordinary shares Market capitalisation: £21million Outstanding options: 2.18m (4.9% of shares in issue) Significant shareholders: Anthony Martin 12,924,595 29.0% Caledonia Investments plc 9,814,264 22.0% Miles Hunt 3,988,092 9.0% Liontrust Asset Man
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