Empresaria Group Plc · LSE:EMR
Empresaria — H1 2017 Earnings Presentation
25 slides from Empresaria's earnings presentation, August 2017
Slide 1: Investor Presentation August 2017
Global Focus, Local Presence Investor Presentation August 2017 Joost Kreulen Chief Executive Officer Spencer Wreford Group Finance Director
Slide 2: Cautionary Statement
Global Focus, Local Presence 1 Cautionary Statement The information contained in this presentation is not audited, is past trends or activities should not be taken as a representation for personal use and informational purposes only and is not that such trends or activities will continue in the futu
Slide 3: The international specialist staffing group
Global Focus, Local Presence 2 The international specialist staffing group Multi-brand strategy to address global Focus on growth and emerging talent shortages – decentralised staffing markets – large presence structure emphasises local expertise in Asia and Latin America and market knowledge Operat
Slide 4: Overview of the half year
Global Focus, Local Presence 3 Overview of the half year Diversified business model delivers record half year profit • Record adjusted profit before tax of £4.6m • Sixteen consecutive quarters of net fee income growth • 33% growth in adjusted EPS Adjusted PBT (£m) Adjusted diluted EPS (p) 10.0 12.0
Slide 5: Overview of the half year
Global Focus, Local Presence 4 Overview of the half year Strengthening a multi-branded group • Investments in Rishworth Aviation and ConSol Partners made in 2016 integrated into Group • Strengthening brands - bring brands closer together - investing in staff - rationalising cost • New Monroe Consult
Slide 6: Investments - update
Global Focus, Local Presence 5 Investments - update • Full contribution from both brands in first half year results • Empresaria is pleased with how they have integrated into the Group • See good opportunities for them to develop as part of the larger Group Rishworth Aviation ConSol Partners • Perfo
Slide 7: Operations review - UK
Global Focus, Local Presence 6 Operations review - UK £’m 2017 2016 Revenue 43.9 32.0 35% of Group Net fee income 12.1 9.2 net fee income Adjusted operating profit 0.9 0.6 • Stronger growth in temporary sales (IT & Professional services) • Insurance brand now reporting into leading brand, LMA • Good
Slide 8: Operations review – Continental Europe
Global Focus, Local Presence 7 Operations review – Continental Europe £’m 2017 2016 Revenue 46.5 43.2 23% of Group Net fee income 7.8 8.1 net fee income Adjusted operating profit 1.9 1.9 • Revenue growth driven by Headway in Germany & Austria • Margin pressure from changes to minimum wage and client
Slide 9: Operations review – Asia Pacific
Global Focus, Local Presence 8 Operations review – Asia Pacific £’m 2017 2016 Revenue 64.2 16.2 32% of Group Net fee income 11.1 7.9 net fee income Adjusted operating profit 1.8 1.1 • Growth in temporary revenue, helped by investment in Rishworth Aviation • Good growth from Japan (IT), Singapore (Pr
Slide 10: Operations review – Americas
Global Focus, Local Presence 9 Operations review – Americas £’m 2017 2016 Revenue 18.8 14.8 10% of Group Net fee income 3.4 2.0 net fee income Adjusted operating profit 0.3 0.4 • Alternattiva in Chile performing well • Pharmaceutical Strategies diversifying client base • Net fee income added from Co
Slide 11: Diversified and balanced
Global Focus, Local Presence 10 Diversified and balanced …. by geography ….. by sector UK (35%) Technical & industrial Germany & Austria (21%) (30%) IT, digital & design Americas (10%) (27%) Professional services Australia & New Zealand (9%) (10%) Aviation (8%) Japan (8%) Retail (7%) South East Asia
Slide 12: Financial summary
Global Focus, Local Presence 11 Financial summary £’m 2017 2016 % var Constant currency % var Revenue 173.4 106.1 63% 50% Permanent revenue 15.9 13.3 19% 10% Temporary revenue 157.5 92.8 70% 56% Net fee income 34.4 27.2 26% 17% Adjusted operating profit* 4.9 4.0 23% 9% Conversion ratio 14.2% 14.8% A
Slide 13: Revenue analysis
Global Focus, Local Presence 12 Revenue analysis Temporary revenue +70% (+56% in constant currency) Permanent revenue +19% (+10% constant currency) • Strong results from Professional services in UK, • Strong results from Japan, Thailand, India & Singapore Headway, Japan and Chile • Investment in Con
Slide 14: Net fee income Conversion ratio
Global Focus, Local Presence 13 Net fee income Conversion ratio Net fee income +26% (+17% constant currency) Conversion ratio of 14.2% • Driven by external investments in Rishworth Aviation, • Average staff numbers increased from 1,215 to 1,372 ConSol Partners and currency • Impacts of organic inves
Slide 15: Net debt
Global Focus, Local Presence 14 Net debt Reported net debt increases to £15.9m (2016: £10.2m) due Cash generative business: to funding of investments Cash generated from operations £4.5m Adjusted net debt, adding back pilot bonds held by Rishworth Aviation, stands at £22.3m (2016: £10.2m) Purc
Slide 16: Looking forward
Global Focus, Local Presence Looking forward
Slide 17: Delivering on our growth strategy
Global Focus, Local Presence 16 Delivering on our growth strategy Develop leading brands with Develop - organic investment in sector expertise existing brands - Increase headcount in existing brand - Professional & specialist roles - Add a new vertical specialism - Sectors with long term growth pros
Slide 18: Summary and outlook
Global Focus, Local Presence 17 Summary and outlook • Diversified business model delivers growth and resilience • Benefit from external investments made in 2016 in Rishworth Aviation and ConSol Partners • Growth in net fee income, profit and adjusted earnings per share Growth in net fee income of
Slide 19: Q&A
Global Focus, Local Presence 18 Q&A
Slide 20: Appendices
Global Focus, Local Presence 19 Appendices
Slide 21: Income statement – Half year 2017
Global Focus, Local Presence 20 Income statement – Half year 2017 Constant £m 2017 2016 Change currency Revenue 173.4 106.1 63% 50% Net fee Income (gross profit) 34.4 27.2 26% 17% Overheads (29.5) (23.2) Adjusted operating profit* 4.9 4.0 23% 9% Interest costs increased due to funding investments bu
Slide 22: Balance sheet – 30 June 2017
Global Focus, Local Presence 21 Balance sheet – 30 June 2017 £m 2017 2016 Property, plant & equipment 1.4 1.6 Goodwill and intangibles 55.8 35.0 Goodwill and intangibles increased for investments and currency Deferred tax asset 1.0 1.0 movements 58.2 37.6 Trade and other receivables 52.3 42.3 Trade
Slide 23: Cash flow – Half year 2017
Global Focus, Local Presence 22 Cash flow – Half year 2017 £m 2017 2016 Profit for the period 2.1 1.8 Depreciation, amortisation & share based payments 1.4 0.9 Tax and interest added back 1.7 1.6 Cash generated from operations was £4.5m, up on the prior year Working capital (0.7) (0.2) despite incre
Slide 24: Directors
Global Focus, Local Presence 23 Directors Board has extensive knowledge of the staffing industry with a combined experience of 100 years Tony Martin – Chairman Tony served as Chairman and CEO of Select Appointments and Vedior NV, building one of the world’s largest recruitment companies, before it w
Slide 25: Shareholder information
Global Focus, Local Presence 24 Shareholder information Shares in issue: 49,019,132 ordinary shares Market capitalisation: £69 million Outstanding options: 3.6m (7.4% of shares in issue) Significant shareholders (updated on 18 August 2017): Anthony Martin 13,924,595 28% Liontrust Investment Partners