Slide 1: Preliminary results 2012
Preliminary results 2012 20 March 2013 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: Strategy
Strategy Specialist Value added service Better margins and growth opportunities People focus Management equity philosophy Multi-branded 20 separate brands with own specialism Operational mix – balance of temporary Permanent revenue focus in high growth and permanent revenue Asia-Pacific markets, tem
Slide 4: What we do
What we do Recruitment focus Diversified & balanced approach Services: Regions: 2012 net fee income by region 90% of net fee income from Balance between mature stable 28% UK staffing services 36% markets and Continental Europe higher growth 30% permanent sales Rest of the emerging markets world 60%
Slide 5: Why we are in our markets
Why we are in our markets Region Market size Temp/Perm Opportunity GDP growth focus UK 3rd largest staffing Temp bias (59% of Mature market Next 5 years on market net fee income) delivering good average 1% returns High temp penetration rates Continental Europe Germany is 5th Temp bias (96% of German
Slide 6: Why we are in our markets
Why we are in our markets Temp penetration rates: Source, CIETT estimates for 2010 Market size: Source, Staffing Industry Analysts Global Staffing Market Report April 2012 3.5% 35% 3.0% 30% 2.5% 25% 2.0% 20% 15% 1.5% 10% 1.0% 5% 0.5% 0% 0.0% Populations: Sources, CIA World Factbook 2012 estimates, G
Slide 7: Highlights of 2012
Highlights of 2012 • Revenue -7% to £194.3m • Net fee income -6% to £43.9m • Conversion ratio +12% (2011: 11%) • Operating profit +57% to £4.4m • Adjusted operating profit +2% to £5.4m • Profit before tax +89% to £3.6m • Adjusted profit before tax +2% to £4.6m • Earnings per share 3.0p (2011: loss o
Slide 8: Highlights of 2012
Highlights of 2012 • Net fee income by region Net fee income by region Net fee income % growth 20% Rest of the World 10% 28% (24%) UK 36% 0% (34%) -10% -20% Continental Rest of the Continental UK Europe World Europe 2012 0% -20% 9% 36% (42%) 2011 5% -10% 19% • Action taken in 2011 results in turnaro
Slide 9: Income statement – Regional overview
Income statement – Regional overview Revenue (£m) NFI (£m) Adjusted operating profit (£m) 100.0 20.0 80.0 15.0 2.0 60.0 10.0 40.0 1.0 20.0 5.0 0.0 0.0 0.0 UK Continental Rest of the UK Continental Rest of the UK Continental Rest of the Europe World Europe World Europe World 2012 2011 2012 2011 2012
Slide 10: Current trading and outlook
Current trading and outlook • Actions taken in 2012 to deal with operational issues in Germany and Chile • Significant cost reduction in Germany to offset new equal pay surcharges • CGZP provision – 3 year time bar ends December 2013 • Solid platform in place across the Group from which to deliver g
Slide 11: Appendices
Empresaria Group plc International Specialist Temporary & Permanent Staffing Group Appendices
Slide 12: Income statement – Year to December 2012
Income statement – Year to 31 December 2012 Income statement £m 2012 2011 Change Revenue decreased by 7%, with a 12% increase in permanent sales and an 8% decrease in Revenue 194.3 208.9 (7%) temporary sales. On a like-for-like currency basis, revenue was down 4% on the prior year. Net fee Income/ G
Slide 13: Balance sheet – December 2012
Balance sheet – December 2012 £m 2012 2011 Property, plant & equipment 1.3 1.7 Capital expenditure of £0.5m on fixed assets. Goodwill and intangibles 26.6 27.3 Deferred tax asset 1.2 1.5 Deferred tax asset reduces as losses utilised. Call option asset 0.0 0.3 29.1 30.8 Call option unwound. Average d
Slide 14: Cash flow – Year to December 2012
Cash flow – Year to December 2012 £m 2012 2011 Profit for the period 1.9 0.4 Depreciation, amortisation & share based Cash generated from operations was £5.2m, up on the payments 1.3 1.1 prior year after £0.2m working capital investment and Tax and interest added back 2.5 1.9 £1.0m cash spend on res
Slide 15: Directors
Directors Tony Martin - Chairman Tony was appointed Chairman of Empresaria in July 2004. Prior to joining Empresaria, Tony served as Chairman and Chief Executive of Select Appointments (Holdings) PLC from 1992 to 1999, which he and his team built into a global recruitment business before agreeing to
Slide 16: Shareholder information
Shareholder information Shares in issue: 44,562,847 ordinary shares Market capitalisation: £14.7million Free float: 52.5% Outstanding options: 1.22m (2.7% of fully diluted) Significant shareholders: Caledonia Investments 10,149,264 22.8% A V Martin 9,690,546 21.8% M W R Hunt 3,988,092 9.0% Liontrust
Slide 17: 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