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Empresaria sees strong growth

Wednesday, 1st March 2017
Empresaria, the international specialist staffing group, reports strong growth in profit before tax and adjusted earnings per share for the year to the end of December.

Group revenue of £270.4m was up 44% on the prior year of £187.3m, with a 50% growth in temporary revenue and 7% growth in permanent revenue.

The growth in net fee income was 20%, with a reduced temporary margin of 14.5% (2015: 16.7%).

Empresaria said this was largely due to Rishworth Aviation having a lower margin than the rest of the group at 6%, although this margin was earned over a long period as its temporary contracts typically last between three and five years.

Also in Germany there was a reduced margin from changes in the client mix and tariffs.

Empresaria said it continued to see an improvement in conversion ratio, for the fifth year in a row, increasing from 16.3% to 16.6% with costs controlled despite further investments in the business.

Operating profit grew 12% to £8.5m (2015: £7.6m), after a £0.7m increase in amortisation charges to £1.1m.

With interest costs higher due to the debt taken on to help fund the investments, profit before tax growth was 11% to £7.9m (2015: £7.1m).

On an adjusted basis, excluding amortisation, exceptional items and fair value charges on the acquisition of non-controlling interests, both operating profit and profit before tax grew 23% over the prior year.

Diluted earnings per share was unchanged at 9.3p, again impacted by higher amortisation costs.

On an adjusted basis it grew by 14% to 11.3p, delivering the fifth year in a row of double digit growth.

Empresaria said the results had been affected by currency movements, especially in the second half of the year.

There was a small negative impact on the trading results, but overall it has been positive for the group, with a benefit from the translation of overseas profits into sterling.

On a constant currency basis revenue growth was 33%, net fee income was up 10% and adjusted profit before tax was up 11%.

Chief executive Joost Kreulen said: "Empresaria has delivered another year of record profit and strong growth in adjusted earnings per share, demonstrating the strength of our diversified business model.

"We are focused on delivering on our strategy: strengthening a multi-branded group, with an emphasis on developing leading brands that are diversified and balanced by geography and sector.

"Alongside the solid performances across a number of countries, we are particularly pleased to have secured two significant international investments during the year; Rishworth Aviation and ConSol Partners.

"Both brands operate in sectors with good long-term growth prospects and complement the Group's 'Invest & Develop' strategy.

"We look forward to the growth opportunities that these businesses have as part of the Group.

"We continue to see exciting growth opportunities to develop our Group and deliver increased profits and we look to 2017 with confidence."

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