Empresaria Group Plc · LSE:EMR
Empresaria — FY2020 Earnings Presentation
27 slides from Empresaria's earnings presentation, March 2021
Slide 1: Investor Presentation 2020 Full Year Results
Investor Presentation 2020 Full Year Results March 2021 Rhona Driggs Tim Anderson Chief Executive Officer Chief Financial Officer 1
Slide 2: Contents
Contents Overview 3 Financial review 10 Sector analysis 13 Outlook 20 Appendices 22 2
Slide 3: Overview
Overview 3
Slide 4: A global diversified staffing Group
A global diversified staffing Group 6 sectors operating in 20 countries and placing in many more Permanent (32%, 2019: 37%) Diversity of locations and services reduces impact from localised market issues Temporary and Contract (59%, 2019: 56%) 75% of net fee income from outside of UK Growing
Slide 5: Our sectors and markets
Our sectors and markets Continental UK Asia Pacific Americas Europe Sales and Sales and Professional 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 opera
Slide 6: Overview
Overview Delivered year on year profit growth in each of the first three months of the year Quick and effective response to COVID-19 - profitable in every quarter Accelerated strategic plan Protected key investments Well positioned to take advantage when our markets recover Market guidan
Slide 7: Profitability and financial strength in face of COVID-19
Profitability and financial strength in face of COVID-19 Year on year profit growth in the first quarter pre-pandemic Benefit of operational initiatives put in place last year Profit growth in each month Profitable in each quarter of the year Significant impact to net fee income – Q2, down
Slide 8: Operating highlights
Operating highlights Investment in common technology continued 3 additional brands went live on Bullhorn in July Technology roadmap in place – majority of brands to be implemented within 18 months Operating model evolution accelerated in key brands Ensure equal focus on sales and candidate
Slide 9: Update on strategic objectives
Update on strategic objectives Objective 2020 progress 2021 priorities Build scale in key Improvements to operating models Regional management and sales structure markets and sectors Consolidated small loss-making operations Grow US presence of IT and Healthcare Restructured management in
Slide 10: Financial review
Financial review 10
Slide 11: Summary income statement
Summary income statement % change £m 2020 2019 % change (constant currency) Revenue 256.5 358.0 -28% -27% Net fee income 54.0 74.5 -28% -27% Administrative costs (47.8) (64.1) -25% Adjusted operating profit – Sectors 9.4 14.6 -36% Central costs (3.2) (4.2) +24% Adjusted operating profit 6.2 10.4 -40
Slide 12: Adjusted net debt
Adjusted net debt 31 Dec 31 Dec Net debt substantially reduced reflecting % var 2020 2019 working capital inflows in Q2, offset by working capital outflows as trading Adjusted net debt £13.6m £19.1m -29% recovered in the second half of the year. Demonstrated strength of balance sheet. Headroom (ex
Slide 13: Sector analysis
Sector analysis 13
Slide 14: Professional
Professional % change NFI split £m 2020 2019 % change (constant 2020 33% currency) 38% Revenue 55.3 125.0 -56% -55% 2019 Net fee income 15.4 27.3 -44% -43% 62% 67% Adjusted operating profit 0.2 3.5 -94% -94% % of Group net fee income 28% 37% Perm Temp Sector experienced large impact from COVID-19,
Slide 15: IT
IT % change NFI split £m 2020 2019 % change (constant 2020 currency) 57% Revenue 41.8 45.2 -8% -8% 2019 53% Net fee income 12.7 14.4 -12% -12% 47% 43% Adjusted operating profit 1.8 3.2 -44% -44% % of Group net fee income 23% 19% Perm Temp Sector has been one of the more resilient in face of COVID-
Slide 16: Healthcare
Healthcare % change NFI split £m 2020 2019 % change (constant 8% currency) 14% Revenue 13.2 11.3 17% 17% 2019 Net fee income 2.5 2.8 -11% -11% 86% 2020 Adjusted operating profit 0.4 0.5 -20% -20% 92% % of Group net fee income 5% 4% Perm Temp Most resilient sector with an improved performance in th
Slide 17: Property, Construction & Engineering
Property, Construction & Engineering % change NFI split £m 2020 2019 % change (constant 14% currency) 32% Revenue 3.6 22.4 -84% -84% 2019 Net fee income 0.7 3.8 -82% -82% 68% 2020 Adjusted operating loss (0.2) (1.2) -83% -83% 86% % of Group net fee income 1% 5% Perm Temp Year on year fall in reven
Slide 18: Commercial
Commercial % change NFI split £m 2020 2019 % change (constant 3% currency) 6% Revenue 132.3 142.4 -7% -5% 2019 Net fee income 17.2 19.7 -13% -12% 94% 2020 Adjusted operating profit 4.6 5.4 -15% -13% 97% % of Group net fee income 32% 26% Perm Temp One of our most resilient sectors but with performa
Slide 19: Offshore Recruitment Services
Offshore Recruitment Services % change NFI split £m 2020 2019 % change (constant 10% 3% currency) 16% Revenue 10.9 12.2 -11% -6% 2019 Net fee income 6.1 7.0 -13% -8% 84% 87% 2020 Adjusted operating profit 2.6 3.2 -19% -13% % of Group net fee income 11% 9% Perm Temp ORS Significant fall in demand i
Slide 20: Outlook
Outlook 20
Slide 21: Outlook
Outlook Cautious on the speed of recovery as COVID-19 continues to impact the global economy. Most economic forecasts are positive but include assumptions about the success of vaccination roll outs – high level of risk remains. We are seeing a two speed recovery – those sectors that have adapt
Slide 22: Appendices
Appendices 22
Slide 23: Income statement
Income statement Year ended 31 December 2020 % Change £m 2020 2019 % Change (constant currency) Revenue 256,5 358.0 -28% -27% Net fee Income 54.0 74.5 -28% -27% Administrative costs (47.8) (64.1) Adjusted operating profit* 6.2 10.4 -40% -39% Interest (1.0) (1.1) Adjusted profit before tax* 5.2 9.3 -
Slide 24: Balance Sheet
Balance Sheet As at 31 December 2020 £m 2020 2019 Property, plant and equipment and right-of use assets 10.6 12.9 Limited new leasing activity in 2020 Goodwill and other intangibles 43.0 49.0 Trade and other receivables 44.8 55.2 Fall in trade receivables reflecting reduction in trading Cash and cas
Slide 25: Cash flow statement
Cash flow statement Year ended 31 December 2020 £m 2020 2019 (Loss)/profit for the year (3.2) 0.5 Depreciation, amortisation, fair value charge on acquisition of non-controlling shares, share-based payments and 14.2 12.1 impairment of goodwill and other intangible assets Tax and interest 2.2 3.5 Wor
Slide 26: Shareholder information
Shareholder information Shares in issue – 49.0m ordinary shares Market capitalisation - £23.5m (5 March 2021) 1m vested options (net of 1m EBT holding), 2.7m unvested options (3 year performance criteria) Significant shareholders set out below (updated March 2021) Number of Shareholder % hel
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