Empresaria Group Plc · LSE:EMR
Empresaria — H1 2021 Earnings Presentation
27 slides from Empresaria's earnings presentation, August 2021
Slide 1: Investor Presentation: 2021 Half Year Results
Investor Presentation 2021 Half Year Results August 2021 Rhona Driggs Tim Anderson Chief Executive Officer Chief Financial Officer 1
Slide 2: Contents
Contents Overview 3 Financial review 9 Sector analysis 12 Outlook 19 Appendices 21 2
Slide 3: Overview
Overview 3
Slide 4: A global diversified staffing Group
A global diversified staffing Group § Healthcare increased to 8% of Group NFI Permanent (33%, 2020: § APAC reduced to 34% of Group NFI due to impact of 34%) aviation industry Temporary and Contract § 75% of net fee income from outside of UK (58%, 2020: 57%) § Temp/perm split in line with prior year
Slide 5: Overview
Overview § Strong recovery in profits – adjusted profit before tax up 67% on prior year and 8% ahead of 2019 § Progress on net fee income recovery § Q2 up 30% on prior year with growth in all sectors § Q1 down 19% v prior year reflecting strong pre-COVID comparator § H1 up 1% on prior year, up 4% in
Slide 6: Operating highlights
Operating highlights § Investment in regional leadership – appointed Regional CEOs for APAC and UK & Europe in H1, and President, North America in August § Investment in common technology – 2 more businesses live during H1 § Benefits of operational initiatives demonstrated in H1 § US Healthcare busi
Slide 7: Investing in senior leadership
Investing in senior leadership § More than 20 years staffing industry experience with significant Julie Smith expertise across RPO and MSP Regional CEO § Previously Vice President of Operations at Volt UK & Europe § Significant international experience – expanded business across 26 European countrie
Slide 8: Update on strategic objectives
Update on strategic objectives Objective 2021 priorities (per annual report) 2021 progress Build scale in key § Regional management and sales structure § Regional leadership in place markets and sectors § Grow US presence of IT and Healthcare § US Healthcare strong H1 § Expand Offshore Recruitment S
Slide 9: Financial review
Financial review 9
Slide 10: Summary income statement
Summary income statement % change % change % % £m 2021 2020 (constant 2019 (constant change change currency) currency) Revenue 129.8 136.1 -5% -3% 175.5 -26% -24% Net fee income 28.4 28.2 +1% +4% 36.3 -22% -19% Administrative costs (24.1) (25.2) -4% (32.0) -25% Adjusted operating profit – Sectors 6.
Slide 11: Adjusted net debt
Adjusted net debt 30 June 31 Dec 30 June § Net debt increased from 31 December 2021 2020 2020 reflecting working capital outflows as trading recovered Adjusted net debt £16.5m £13.6m £8.9m § Headroom remains strong at £12.4m Headroom (exc invoice financing) £12.4m £17.6m £18.1m § Interest charge rem
Slide 12: Sector analysis
Sector analysis 12
Slide 13: Professional
Professional % change NFI split £m 2021 2020 % change (constant 26% 2021 currency) 38% Revenue 21.6 35.3 -39% -40% 2020 Net fee income 8.2 8.8 -7% -7% 62% 74% Adjusted operating profit 0.5 0.5 -% -% % of Group net fee income 28% 31% Perm Temp § Excluding aviation Professional has recovered well – Q2
Slide 14: IT
IT % change NFI split £m 2021 2020 % change (constant 2021 currency) 55% Revenue 18.9 22.1 -14% -11% 2020 55% Net fee income 6.5 6.7 -3% +2% 45% 45% Adjusted operating profit 1.6 1.2 +33% +45% % of Group net fee income 23% 24% Perm Temp § Japan performed strongly with profits and net fee income up o
Slide 15: Healthcare
Healthcare % change NFI split £m 2021 2020 % change (constant 5% currency) 8% Revenue 13.9 5.9 +136% +153% 2020 Net fee income 2.2 1.2 +83% +100% 92% 2021 Adjusted operating profit 0.9 0.1 +800% +800% 95% % of Group net fee income 8% 4% Perm Temp § Record half for this sector – H1 2021 revenue great
Slide 16: Property, Construction & Engineering
Property, Construction & Engineering % change NFI split £m 2021 2020 % change (constant 25% currency) 25% Revenue 1.8 1.8 -% -% 2020 Net fee income 0.4 0.4 -% -% 75% 2021 Adjusted operating loss (0.1) (0.1) -% -% 75% % of Group net fee income 1% 1% Perm Temp § Sector performance in line with 2020 §
Slide 17: Commercial
Commercial % change NFI split £m 2021 2020 % change (constant 2% currency) 4% Revenue 67.7 65.5 +3% +6% 2020 Net fee income 8.4 8.0 +5% +8% 96% 2021 Adjusted operating profit 2.0 1.5 +33% +33% 98% % of Group net fee income 29% 28% Perm Temp § Overall positive performance with increases in revenue, n
Slide 18: Offshore Recruitment Services
Offshore Recruitment Services % change NFI split £m 2021 2020 % change (constant 3% currency) 12% Revenue 6.4 5.8 +10% +21% 2020 Net fee income 3.2 3.4 -6% +3% 88% 2021 Adjusted operating profit 1.8 1.4 +29% +38% 97% % of Group net fee income 11% 12% Perm Temp ORS § Dubai operation exited with effec
Slide 19: Outlook
Outlook 19
Slide 20: Outlook
Outlook § Continuing to invest in the business § Embed regional leadership structure and regional strategies § Continue technology rollout – more locations planned for H2 § Strong demand in most markets leading to skills shortages in key sectors § COVID-19 expected to remain a challenge in short-ter
Slide 21: Appendices
Appendices 21
Slide 22: 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 23: Income statement
Income statement Six months ended 30 June 2021 % Change £m 2021 2020 % Change (constant currency) Revenue 129.8 136.1 -5% -3% Net fee Income 28.4 28.2 +1% +4% Administrative costs (24.1) (25.2) Adjusted operating profit* 4.3 3.0 +43% +54% Interest (0.3) (0.6) Adjusted profit before tax* 4.0 2.4 +67%
Slide 24: Balance Sheet
Balance Sheet As at 30 June 2021 £m 2021 2020 Property, plant and equipment and right-of use assets 9.7 10.9 Limited new leasing activity in 2021 Goodwill and other intangibles 40.7 47.2 Impact of 2020/2021 impairment in aviation and FX Trade and other receivables 49.9 44.6 Increase in trade receiva
Slide 25: Cash flow statement
Cash flow statement Six months ended 30 June 2021 £m 2021 2020 Profit/(loss) for the year 1.0 (1.4) Depreciation, amortisation, fair value charge on acquisition of non-controlling shares, share-based payments and 5.1 7.5 impairment of goodwill and other intangible assets Tax and interest 1.7 0.8 Wor
Slide 26: Shareholder information
Shareholder information § Shares in issue – 49.6m ordinary shares § Market capitalisation - £40.2m (9 August 2021) § 1m vested options (0.9m currently held in EBT), 2.7m unvested options (3 year performance criteria) § Significant shareholders set out below (updated August 2021) Number of Shareholde
Slide 27: 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