29th Jan 2020 13:01
(Alliance News) - Staffing firm Empresaria Group PLC on Wednesday said it expects full-year results in line with expectations amid income growth from most of its divisions.
In the year to December 31, net fee income edged 3.0% higher year-on-year to GBP74.5 million from GBP72.3 million. At constant currency, it was 2% higher, Empresaria said.
Adjusted pretax profit is expected at GBP9.3 million, in line with market expectations but an 18% fall from GBP11.4 million in 2018.
Empresaria said: "The reduction in adjusted profit before tax reflects the impact of the material declines in the UK engineering business along with the impact of Brexit in the UK and the slowdown of the German automotive sector."
The adjusted figure does not include costs from a UK engineering business restructure and expenses associated with its change of chief executive in June. Spencer Wreford stood down as CEO in June, he was replaced by Rhona Driggs, the chief operating officer at the time.
Driggs said on Wednesday: "We have delivered results for the year in line with expectations as stated in October, with growth in net fee income for the year despite a challenging trading environment. We have made a number of significant operational changes in 2019 and have identified further key areas for operational improvement and investment in 2020 in order to build a stronger base for future growth and deliver an improved financial performance."
The Professional sector had 1.9% annual rise in net fee income to GBP27.3 million, despite "the adverse impact of Brexit" on UK businesses.
The firm's aviation business, part of the Professional division, was hurt by the grounding of Boeing Co 737 MAX aircraft, with demand for new pilots from one Empresaria "large" clients lessening.
The 737 MAX was grounded by aviation regulators last year following two fatal crashes.
Empresaria's Commercial unit posted a 2.6% net fee income rise to GBP19.7 million with IT division booking a 5.9% increase to GBP14.4 million.
Elsewhere, Healthcare had a 3.7% net fee income rise to GBP2.8 million, Offshore Recruitment Services a 37% surge to GBP7.0 million but in Property, Construction & Engineering, there was a 28% decline to GBP3.8 million.
Shares in the company were 5.6% lower at 53.36 pence each in London on Wednesday afternoon.
By Eric Cunha; [email protected]
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