Empresaria Group Plc · LSE:EMR
Empresaria — H1 2024 Earnings Presentation
24 slides from Empresaria's earnings presentation, August 2024
Slide 1: Investor Presentation: 2024 Interim Results
Investor Presentation 2024 Interim Results, August 2024 Rhona Driggs Tim Anderson Chief Executive Officer Chief Financial Officer
Slide 2: Welcome
Welcome 03 Overview & highlights 06 Financial review Rhona Driggs 09 Operating review Chief Executive Officer 15 Outlook Tim Anderson Chief Financial Officer 18 Appendices 2
Slide 3: Overview & highlights
Empresaria Overview & alielalivelalas
Slide 4: Financial overview
Financial overview • Challenging market conditions continued throughout the first half of 2024 which impacted net fee income • Reduced by 9% CC LFL to £25.3m • Permanent placement down 21% CC LFL • Temporary and contract down 1% CC LFL • Offshore Services down 10% CC • Adjusted operating profit down
Slide 5: Operating highlights
Operating highlights • Challenging market conditions remain • Perm continues to be hardest hit • Temporary and contract resilient with some pockets of growth • Offshore Services feeling impact of wider market, but well positioned to return to growth • IT sector continues to be challenging across all
Slide 6: Financial review
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Slide 7: Summary income statement
Summary income statement £m 2024 2023 % change % change (CC LFL*) Revenue 121.8 125.7 -3% +4% Net fee income 25.3 29.7 -15% -9% Administrative costs (24.3) (28.4) -14% Adjusted operating profit – Regions 3.1 3.7 -16% Central costs (2.1) (2.4) -13% Adjusted operating profit 1.0 1.3 -23% -8% Adjusted
Slide 8: Adjusted net debt
Adjusted net debt • Average month end net debt in H1 2024 30 Jun 2024 31 Dec 2023 30 Jun 2023 of £10.9m (H1 2023 £7.9m). 30 June 2024 Adjusted net debt £13.5m £11.1m £8.7m net debt of £13.5m reflects trading for the Headroom (exc. invoice financing) £10.5m £17.8m £18.4m period and the impact of an e
Slide 9: Operating review
Empresaria Operating review
Slide 10: A global diversified staffing group
A global diversified staffing group • UK & Europe increased as a proportion of the Group reflecting relative strength in Commercial sector operations with APAC and Americas reducing • Temp to perm ratio increased to 68:32 (2023: 62:38) reflecting the reduction in permanent placement and the resilien
Slide 11: UK & Europe
UK & Europe 2024 % change 22% £m 2024 2023 % change (CC LFL) 25% Revenue 58.3 58.7 -1% +3% 2023 Net fee income 11.6 12.6 -8% -5% 75% 78% Adjusted operating profit 1.3 0.9 +44% +30% % of Group net fee income 46% 42% Permanent Temporary & contract • The UK saw NFI fall by 9%, in line with the wider Gr
Slide 12: APAC
APAC 2024 % change £m 2024 2023 % change (CC LFL) 36% 36% Revenue 23.8 26.0 -8% +1% 2023 64% Net fee income 5.5 7.3 -25% -12% 64% Adjusted operating loss (0.4) (0.6) +33% +57% % of Group net fee income 21% 24% Permanent Temporary & contract • IT demand is the main driver of the fall in net fee incom
Slide 13: Americas
Americas 2024 12% % change £m 2024 2023 % change (CC LFL) 29% Revenue 27.1 28.4 -5% +8% 2023 Net fee income 2.6 3.4 -24% -16% 71% Adjusted operating loss (0.4) (0.3) -33% +0% 88% % of Group net fee income 10% 11% Permanent Temporary & contract • The US was the main driver of results for the region w
Slide 14: Offshore Services
Offshore Services % change £m 2024 2023 % change (CC LFL) Revenue 13.1 13.2 -1% +3% Net fee income 6.1 7.0 -13% -9% Adjusted operating profit 2.6 3.7 -30% -28% % of Group net fee income 23% 23% • Reduction in net fee income driven by reduction in NHS demand at the end of 2023 and start of 2024. This
Slide 15: Outlook
Empresaria 15
Slide 16: Outlook
Outlook • Weak hiring trends expected to continue throughout H2 2024 • Rigorous cost controls continue while making limited investments in sales where needed to capitalise on market recovery • Focussed on positioning the business to capture new growth opportunities and market share • Confident in ou
Slide 17: Empresaria
Empresaria 17
Slide 18: Appendices
Empresaria Appendices 18
Slide 19: Update on Strategic Objectives
Update on Strategic Objectives Objective 2024 priorities H1 progress Build scale in our key • Alignment of German operations under a single leadership • Alignment of Germany and Austria under a single leader completed markets and sectors structure. in January and working well • Embed UK and US opera
Slide 20: Income statement
Income statement 6 months ended 30 June % Change £m 2024 2023 % Change (constant currency) Revenue 121.8 125.7 -3% +4% Net fee Income 25.3 29.7 -15% -9% Administrative costs (24.3) (28.4) Adjusted operating profit* 1.0 1.3 -23% -8% Net finance costs (0.8) (0.8) Adjusted profit before tax* 0.2 0.5 -6
Slide 21: Balance sheet
Balance sheet As at 30 June £m 2024 2023 Goodwill and other intangibles 35.2 38.6 Trade and other receivables 41.6 44.4 Cash and cash equivalents 16.5 19.6 Right-of-use assets 4.7 5.2 Other assets 8.1 8.0 Total assets 106.1 115.8 Trade and other payables (29.8) (33.2) Borrowings (29.8) (27.8) Lease
Slide 22: Cash flow statement
Cash flow statement 6 months ended 30 June £m 2024 2023 Loss for the period (3.5) (0.3) Depreciation, amortisation, fair value charge on acquisition of non-controlling shares, impairment of 4.0 4.3 goodwill and share-based payments Tax and interest (0.1) 0.9 Working capital 1.3 1.7 Cash generated fr
Slide 23: Shareholder information
Shareholder information • Shares in issue – 49.9m ordinary shares • Market capitalisation - £19.4m (19 August 2024) • Nil vested options, 5.0m unvested options (3 year performance criteria), 0.8m currently held in EBT • Significant shareholders set out below (as at July 2024) Shareholder Number of s
Slide 24: 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