Empresaria Group (EMR) H2 2024 earnings summary

Executive summary

• Net fee income declined 6% year-over-year, with permanent placements down 21% and temporary/contract income up 2%.

• Adjusted operating profit fell 25% to £3.8m; adjusted profit before tax dropped 37% to £2.2m.

• Strategic exits from operations in Finland, China, Japan, Australia, and a UK property/construction business completed.

• Streamlined management structure implemented, aligning operations under single leaders in key markets.

• Accelerated strategy focuses on UK and US core sectors and Offshore Services, with planned exit from non-core operations over two years.

Financial highlights

• Revenue decreased 2% year-over-year to £246.2m; net fee income down 6% constant currency like-for-like to £50.4m.

• Adjusted operating profit down 21% constant currency like-for-like to £3.8m; adjusted profit before tax down 37% to £2.2m.

• Adjusted diluted loss per share of £0.01 (1.0p) versus earnings of 0.6p in 2023.

• Net debt increased to £15.3m at year-end, with average month-end net debt of £12.1m.

• Headroom reduced to £4.1m, partly due to facility reductions and cash pooling in Germany.

Outlook and guidance

• No significant market recovery expected in 2025; guidance assumes continued challenging conditions.

• Focus on improving performance, accelerating strategy, and preparing non-core operations for sale.

• First significant non-core sale expected in late 2025 to improve financial position.

• Continued investment in technology, training, and a single brand for UK/US operations.