Empresaria Group Plc · LSE:EMR
Empresaria — H1 2022 Earnings Presentation
27 slides from Empresaria's earnings presentation, August 2022
Slide 1: Investor Presentation: 2022 Interim Results
Investor Presentation 2022 Interim Results, August 2022 Rhona Driggs Tim Anderson Chief Executive Officer Chief Financial Officer
Slide 2: Welcome
Welcome 03 Overview 06 Strategy Update Rhona Driggs 08 Financial Review Chief Executive Officer 11 Operating Review Tim Anderson Chief Financial Officer 17 Outlook 20 Appendices 2
Slide 3: Overview
Overview Empresaria
Slide 4: Overview
Overview • Solid growth in net fee income - H1 up 15% on prior year • Adjusted operating profit increased by 5% reflecting ongoing investment in the business • Adjusted net debt of £10.8m, down by £3.2m from 31 December 2021 • Key themes • Very strong growth in Offshore Services • Ongoing benefits f
Slide 5: Operating Highlights
Operating Highlights • Following appointment of regional leaders in 2021, the Group has moved to a regional reporting structure • Very strong growth in Offshore Services • Headcount increased to more than 2,700 – up 36% from 31 December 2021 • Net fee income up 91%, profit up 94% • Investment in inf
Slide 6: Strategy Update
Empresaria ~ a Strategy @/ f Update
Slide 7: Update on Strategic Objectives
Update on Strategic Objectives Objective 2022 priorities (from annual report) 2022 progress Build scale in key • Create and implement regional sales strategies • Appointed regional sales director for APAC markets and sectors • Expand IT offering in Asia Pacific region • Structured APAC IT offering w
Slide 8: Financial Review
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Slide 9: Summary Income Statement
Summary Income Statement % change £m 2022 2021 % change (constant currency) Revenue 129.8 129.8 +0% +1% Net fee income 32.6 28.4 +15% +15% Administrative costs (28.1) (24.1) +17% Adjusted operating profit – Regions 6.8 6.5 +5% Central costs (2.3) (2.2) +5% Adjusted operating profit 4.5 4.3 +5% +5% A
Slide 10: Adjusted Net Debt
Adjusted Net Debt • Net debt reduced by £3.2m from 31 30 June 2022 31 Dec 2021 30 June 2021 December 2021 reflecting profits and a Adjusted net debt £10.8m £14.0m £16.5m change in mix with a reduced proportion Headroom (exc invoice financing) £14.8m £12.9m £12.4m of the business from temporary and c
Slide 11: Operating Review
Empresaria Operating Review
Slide 12: A Global Diversified Staffing Group
A Global Diversified Staffing Group • Offshore Services increased to 18% of NFI • Temp to perm ratio reduced to 57:43 (2021 H1: 64:36) reflecting strong growth in perm • Sector weighting reflects strong growth in Professional, Offshore and the expected decrease in Healthcare Region Service Sector 20
Slide 13: UK & Europe
UK & Europe 2022 % change £m 2022 2021 % change (constant currency) 28% 34% Revenue 63.2 67.9 -7% -5% 2021 Net fee income 14.5 14.1 +3% +4% 66% 72% Adjusted operating profit 2.0 2.5 -20% -20% % of Group net fee income 44% 49% Permanent Temporary & contract • Good performance in UK – NFI up 12% drive
Slide 14: APAC
APAC 2022 % change £m 2022 2021 % change (constant currency) 35% 41% Revenue 23.0 19.3 +19% +22% 2021 59% Net fee income 7.9 6.6 +20% +22% 65% Adjusted operating profit 0.5 0.5 +0% +0% % of Group net fee income 24% 23% Permanent Temporary & contract • Strong NFI growth across most countries with Ind
Slide 15: Americas
Americas 2022 % change £m 2022 2021 % change (constant currency) 35% 32% Revenue 32.7 36.7 -11% -11% 2021 68% Net fee income 4.6 5.0 -8% -12% 65% Adjusted operating profit 0.8 1.7 -53% -56% % of Group net fee income 14% 17% Permanent Temporary & contract • US Healthcare results fell in 2022 as expec
Slide 16: Offshore Services
Offshore Services 2% 2022 % change £m 2022 2021 % change (constant currency) 3% Revenue 11.7 6.4 +83% +77% 2021 Net fee income 6.1 3.2 +91% +85% 97% Adjusted operating profit 3.5 1.8 +94% +94% 98% % of Group net fee income 18% 11% Temporary & contract Offshore Services • Strong momentum from 2021 ca
Slide 17: Outlook
Empresaria 17
Slide 18: Outlook
Outlook • Continuing to invest in the business • Growing sales and delivery teams in areas where we see high demand and opportunities • Expanding capacity in Offshore Services • Continue technology rollout and implement next phase of IT roadmap • Global macroeconomic uncertainties are increasing alo
Slide 19: Empresaria
Empresaria 19
Slide 20: Appendices
Empresaria Appendices 20
Slide 21: Our Sectors & Regions
Our Sectors & Regions UK & Europe APAC Americas Sales and operations Professional Sales and operations Sales and operations IT Sales and operations Sales and operations Healthcare Sales and operations Sales and operations Property, Construction & Engineering Sales and operations Commercial Sales and
Slide 22: Offshore Services
Offshore Services • Our Offshore Services region operates from three locations – two in India and one in the Philippines. >2,700 employees 3 locations • We provides a range of services to our clients who are primarily based in the UK and US. • Our clients operate in the staffing sector across a 5 ye
Slide 23: Income Statement
Income Statement Six months ended 30 June % Change £m 2022 2021 % Change (constant currency) Revenue 129.8 129.8 +0% +1% Net fee Income 32.6 28.4 +15% +15% Administrative costs (28.1) (24.1) Adjusted operating profit* 4.5 4.3 +5% +5% Interest (0.5) (0.3) Adjusted profit before tax* 4.0 4.0 +0% Impai
Slide 24: Balance sheet
Balance sheet As at 30 June £m 2022 2021 Property, plant and equipment and right-of use assets 8.9 9.7 Goodwill and other intangibles 40.0 40.7 Amortisation more than offset by FX gains Trade and other receivables 48.8 49.9 Cash and cash equivalents 23.1 21.4 Deferred tax assets 4.2 3.2 Total assets
Slide 25: Cash Flow Statement
Cash Flow Statement Six months ended 30 June £m 2022 2021 Profit for the period 2.0 1.0 Depreciation, amortisation, fair value charge on acquisition of non-controlling shares, share-based 4.0 5.1 payments and impairment of goodwill and other intangible assets Tax and interest 1.8 1.7 Working capital
Slide 26: Shareholder Information
Shareholder Information • Shares in issue – 49.9m ordinary shares • Market capitalization - £29.9m (1 August 2022) • 0.3m vested options (0.8m currently held in EBT), 4.0m unvested options (3 year performance criteria) • Significant shareholders set out below (updated July 2022) Shareholder Number o
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