11th Mar 2014 09:34
LONDON (Alliance News) - Recruitment firm Empresaria Group PLC Tuesday reported an increase in profit and revenue for the full year, boosted by a strong performance from its UK division.
The company, which specialises in a number of sectors including healthcare, finance and retail, also announced an acquisition in the Middle East.
Empresaria posted pretax profit of GBP4.9 million for 2013, up from GBP3.6 million in 2012, as revenue rose slightly to GBP194.4 million, from GBP194.3 million a year earlier.
It said it experienced mixed trading across its three main geographical segments - the UK, continental Europe and Rest of the World.
UK revenue grew 6.3% to GBP70.7 million, from GBP66.5 million, with permanent sales up 2% and temporary sales up 7%. However, temporary margin reduced 1.5%, so overall net fee income fell 1.3% to GBP15.8 million, from GBP16.0 million in 2012.
In the UK, Empresaria said market conditions are improving with growth led by London and the service sector, while the manufacturing and construction sectors are also showing signs of recovery.
Empresaria's operations in the Rest of the World also did well, with revenue rising to GBP46.8 million from GBP44.6 million, as permanent and temporary revenue rose 12% and 3%, respectively.
In Japan, the company said its two brands - IT, digital and design, and retail - grew profits, with the IT, digital and design brand growing temporary worker numbers by 22%, offsetting lower permanent sales. The Rest of the World division was also boosted by a swing to profit for the company's operations in Singapore and Chile.
However, the Continental Europe struggled despite the eurozone coming out of recession. Revenue for the division fell 7.6% to GBP76.9 million from GBP83.2 million, with net fee income down 11% to GBP13.9 million from GBP15.7 million, as the introduction of equal pay legislation caused the temporary margin to reduce 0.5%.
Financially, the company reduced net debt to GBP5.8 million from GBP8.1 million, as cash generated from operations crept to GBP7.8 million from GBP5.2 million.
Empresaria Chief Executive Joost Kreulen said that on Monday the group acquired 51% of the shares in BW&P FZ LLC, a Dubai based company specialising in permanent sales in the technical and industrial sector, for an initial fee of GBP300,000. Two further payments that are contingent on the performance of the company in the two years ended December 31, 2015.
Kreulen said he has worked with the BW&P management team in the past, and "we see this investment as an exciting opportunity to build a leading brand in this important geographic region and deliver strong profit growth over the next few years."
The company maintained its final dividend of 0.35 pence per share. It didn't give details regarding a total dividend for the year.
The stock was trading at 54.25 pence Tuesday morning, up 5.75 pence or 12%, making it the seventh biggest gainer on AIM.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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