Empresaria Group Plc · LSE:EMR
Empresaria — H1 2012 Earnings Presentation
17 slides from Empresaria's earnings presentation, September 2012
Slide 1: Investor presentation – September 2012
Investor presentation – September 2012 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: Introduction to Empresaria
Introduction to Empresaria An international, multi-branded, specialist recruitment business Exposed to both mature (established) and emerging (significant growth potential) recruitment markets Predominantly Temporary and Permanent recruitment Management incentivisation by equity participatio
Slide 4: Empresaria’s income streams
Empresaria’s income streams Net fee income: ...by Geography ...by Sector ...by Service Germany (36%) UK (34%) Industrial (35%) Technical (16%) Temporary recruitment (65%) Japan (7%) Indonesia (6%) Retail (9%) Financial (8%) Outsourcing & payroll services (6%) Finland/Estonia (5%) Chile (4%) Technolo
Slide 5: Key brand portfolio
Key brand portfolio 10 largest brands account for circa 90% of Group net fee income Brand Sector Locations Headway Technical, Industrial Germany, Austria FastTrack Technical London LMA Financial London, Singapore, Hong Kong Become Services (creative) London, Manchester, Sydney, Melbourne Skillhouse
Slide 6: Growth strategy - focus on key economic centres
Growth strategy - focus on key economic centres ● Operating in selected cities in 19 countries - the key economic centres where the staffing market has the most potential (“hot spots”) ● Deliver organic growth and financial performance from core existing brands ● Selective acquisitions which enhance
Slide 7: Half year results
Half year results Revenue (£m) NFI (£m) Adjusted operating profit (£m) 50.0 10.0 1.0 40.0 8.0 0.8 30.0 6.0 0.6 20.0 4.0 0.4 10.0 2.0 0.2 0.0 0.0 0.0 UK Continental Rest of the UK Continental Rest of the UK Continental Rest of the Europe World Europe World Europe World 2011 2012 2011 2012 2011 2012 A
Slide 8: Current trading and outlook
Current trading and outlook Full year profit expected to be slightly ahead of prior year despite uncertain market conditions Strongest growth coming from Asian markets. UK remains stable Focus on improving operational performance across the Group Restructuring underway in Germany with new MD
Slide 9: Appendices
Appendices 1. Income statement – six months to 30 June 2012 2. Balance sheet – June 2012 3. Cash flow – six months to 30 June 2012 4. KPIs 5. Empresaria Board 6. Shareholder information 7. Equity incentivisation philosophy 9
Slide 10: 1. Income statement – Six months to June 2012
1. Income statement – Six months to 30 June 2012 Income statement Revenue decreased by 4%, with a 13% increase £m 2012 2011 Change in permanent sales and 5% drop in temporary sales. On a like-for-like currency basis, revenue Revenue 97.8 101.4 (4%) was 1% down on the prior year. Net fee Income (gros
Slide 11: 2. Balance sheet – June 2012
2. Balance sheet – 30 June 2012 £m 2012 2011 Capital expenditure of £0.3m on fixed assets. Property, plant & equipment 1.5 1.8 Goodwill and intangibles 26.5 29.0 Goodwill reduced by disposal of ACI and foreign exchange movements. Deferred tax asset 1.4 1.9 Call option asset 0.2 0.4 Call option asset
Slide 12: 3. Cash flow – Six months to June 2012
3. Cash flow – Six months to 30 June 2012 Cash flow statement £m 2012 2011 Profit/(loss) for the period 0.9 (1.6) Depreciation and amortisation 0.6 0.5 Tax and interest added back 0.9 - Loss on disposal of subsidiary - 0.1 Cash generated from operations was £1.1m, after £1.1m Exceptional - provision
Slide 13: 4. Key Performance Indicators
4. Key Performance Indicators Net fee income (£m) Adjusted profit before tax (£m) 7 60 6 50 5 40 4 30 3 20 2 10 1 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Temporary margin (%) Adjusted EPS (p) 25.0 7 6 20.0 5 15.0 4 3 10.0 2 5.0 1 0.0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
Slide 14: 4. Key Performance Indicators (cont.)
4. Key Performance Indicators (cont.) Conversion ratio (%) Average debtor days for year 55 18 16 14 12 50 10 8 6 45 4 2 0 40 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Net debt (£m) 2007 2008 2009 2010 2011 0.0 (2.0) (4.0) (6.0) (8.0) (10.0) 14
Slide 15: 5. The Empresaria Board
5. The Empresaria Board Tony Martin (Chairman) Tony served as Chairman and CEO of Select Appointments (Holdings) Limited from 1992 to 1999 when he became Vice Chairman and member of the Board of Management of Vedior NV, the world’s third largest staffing services group. In August 2000 he assumed the
Slide 16: 6. Shareholder information
6. Shareholder information Shares in issue: 44,562,847 ordinary shares Market capitalisation: £11.1 million Free float: 52.4% Outstanding options: 1.22m (2.7% of fully diluted) Significant shareholders: Caledonia Investments 10,149,264 22.8% A V Martin 9,690,546 21.8% M W R Hunt 3,988,092 9.0% Liont
Slide 17: 7. Equity incentivisation philosophy
7. Equity incentivisation 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 hav