Empresaria Group (EMR) H1 2025 earnings summary

Executive summary

• Net fee income returned to growth in H1 2025, up 0.1% year-on-year (constant currency like-for-like), with Q2 net fee income up 2% year-on-year and 7% sequentially from Q1, led by strong US and Offshore Services performance despite challenging market conditions.

• Adjusted operating profit grew 55% on a constant currency like-for-like basis and 70% on a reported basis, reaching £1.7m, reflecting strong cost management and improved performance in core operations.

• Strategic focus on cost control, operational efficiency, and targeted investments in sales, brand, and technology, with accelerated strategy execution and non-core asset divestments progressing.

• Full-year results are expected to align with Board expectations despite ongoing macroeconomic uncertainties and persistent weak market conditions.

• The group remains in an 'offer period' under the Takeover Code, with ongoing updates to shareholders.

Financial highlights

• Revenue declined 3% year-on-year to £117.8m, but up 3% on a constant currency like-for-like basis, reflecting strength in high-revenue, low-margin commercial operations.

• Reported net fee income declined 8% to £23.4m due to FX headwinds and strategic business exits.

• Adjusted profit before tax was £0.9m, up from £0.2m in H1 2024; profit before tax improved to £0.1m from a £4.4m loss.

• Adjusted, diluted loss per share reduced to 0.8p from 1.2p year-on-year; basic EPS at (3.1)p, improved from (8.4)p.

• Net debt increased to £16.1m at 30 June 2025 (from £15.3m at 31 Dec 2024), mainly due to adverse FX movements; average net debt stable at £15.1m; headroom at £3.7m.

Outlook and guidance

• Full-year results are expected to be in line with Board expectations, supported by H1 performance and ongoing cost discipline.

• Momentum is improving in core operations, but no sustained uplift in demand across the wider recruitment market; external conditions remain mixed.

• Macroeconomic headwinds are expected to persist through 2025, but management remains confident in delivering on guidance.