Empresaria Group Plc · LSE:EMR
Empresaria — H1 2013 Earnings Presentation
20 slides from Empresaria's earnings presentation, September 2013
Slide 1: Investor presentation – September 2013
Investor presentation – September 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: Half year highlights
Half year highlights 2013 2012 % var Revenue £95.6m £97.8m -2% Net fee income £20.9m £22.4m -7% Adjusted operating profit* £2.0m £1.8m +11% Conversion ratio 9.4% 7.7% +22% Adjusted profit before tax* £1.7m £1.4m +21% Earnings per share 1.8p 1.4p +29% Adjusted earnings per share* 2.0p 1.4p +43% Repor
Slide 4: Regional review - UK
Regional review - UK 2013 2012 % var Revenue £33.6m £33.7m - Net fee income £7.8m £7.9m -1% Adjusted operating profit £0.9m £1.1m -18% % of Group net fee income 38% 35% Financial services: Improving market conditions in London Broader sector coverage Construction: Stronger H2 expected than H1 & prio
Slide 5: Regional review – Continental Europe
Regional review – Continental Europe 2013 2012 % var Revenue £38.6m £43.3m -11% Net fee income £6.7m £8.5m -21% Adjusted operating profit £0.3m £0.2m 50% % of Group net fee income 32% 38% Headway: Largest impact in region due to equal pay legislation (Germany/Austria) Net fee income down 17% Temp ma
Slide 6: Regional review – Rest of the World
Regional review – Rest of the World 2013 2012 % var Revenue £23.4m £20.8m +12% Net fee income £6.4m £6.0m +7% Adjusted operating profit £0.8m £0.5m +60% % of Group net fee income 30% 27% Singapore Turned around 2 years of losses & Hong Kong: Chile: Reduced loss after exit of higher risk contracts an
Slide 7: Current trading and outlook
Current trading and outlook • Improved performance from Singapore, Hong Kong & Chile • Cost savings in Germany help to offset lower margin o Market still has good potential o Key focus for management to improve performance • UK market conditions improving • Rest of the World region performing consis
Slide 8: Appendices
Empresaria Group plc International Specialist Temporary & Permanent Staffing Group Appendices
Slide 9: Income statement – six months to June 2013
Income statement – six months to 30 June 2013 £m 2013 2012 Change Revenue decreased by 2%, with a 7% increase in permanent sales and an 3% decrease in Revenue 95.6 97.8 (2%) temporary sales. On a like-for-like currency basis, revenue was down 3% on the prior year. Net fee Income (gross profit) 20.9
Slide 10: Balance sheet – June 2013
Balance sheet – 30 June 2013 £m 2013 2012 Capital expenditure of £0.3m on fixed assets. Property, plant & equipment 1.2 1.5 Goodwill and intangibles 27.2 26.5 Deferred tax asset 1.2 1.4 Average debtor days 50 (2012: 51). Call option asset 0.0 0.2 29.6 29.6 Reported net debt of £8.9m at end of year,
Slide 11: Cash flow – six months to June 2013
Cash flow – six months to 30 June 2013 £m 2013 2012 Profit for the period 1.0 0.9 Depreciation and amortisation 0.5 0.6 Cash generated from operations was £2.5m, up on the Tax and interest added back 0.9 0.9 prior year after £0.6m working capital reduction and Exceptional items (0.5) (0.2) £0.5m cas
Slide 12: 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 13: Strategy
Strategy Specialist Value added service Better margins and growth opportunities People focus Management equity philosophy Multi-branded 19 separate brands with own specialism Operational mix – balance of temporary Permanent revenue focus in high growth and permanent revenue Asia-Pacific markets, tem
Slide 14: 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 (2012) 36% markets and Continental Europe higher growth 30% permanent sales Rest of the emerging markets wor
Slide 15: UK brands
UK brands 21% Financial services: • LMA • Mansion House Technical (Construction): • FastTrack • Reflex HR 40% 39% Other services: • Greycoat Lumleys (Domestic services & catering) • McCall (Recruitment-to-recruitment) • Become (Creative & Media) Financial services • Teamsales (Retail – new housing)
Slide 16: Continental Europe brands
Continental Europe brands 3% 10% 87% Germany & Austria: Headway • Industrial Finland & Estonia: Mediradix • Healthcare Czech Republic & Slovakia: GiT Germany & Austria • IT & Telecoms Finland & Estonia Czech Republic & Slovakia 16
Slide 17: Rest of the World brands
Rest of the World brands Japan: 11% • Skillhouse (IT) • FINES (Fashion retail) 3% 29% Australia: • Become (Creative) China: • HR Intelligence (Executive search) 7% India: 41% • IMS (RPO & Global search) 9% SE Asia*: • Monroe Consulting (Executive Search) • Learning Resources (Training & assessment)
Slide 18: 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 19: 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
Slide 20: Shareholder information
Shareholder information Shares in issue: 44,562,847 ordinary shares Market capitalisation: £15.6million Outstanding options: 1.22m (2.7% of fully diluted) Significant shareholders: Caledonia Investments 9,814,264 22.0% A V Martin 9,690,546 21.8% M W R Hunt 3,988,092 9.0% Liontrust 3,573,468 8.0% Enn