12th Aug 2020 11:10
(Alliance News) - Empresaria Group PLC on Wednesday said it swung to a loss in its first half with a particularly weak revenue performance from the Professional employment sector during the pandemic.
The West Sussex-based staffing firm swung to a GP1.2 million pretax loss for the six months ended June 30 from a GBP2.3 million profit a year before.
Empresaria reported a 22% drop in revenue to GBP136.1 million from GBP175.5 million as Professional sector revenue fell a sharp 43% to GBP35.3 million from GP62.2 million. This sector did, however, manage to generate a small adjusted operating profit, albeit 71% lower than the prior year.
Commenting on the Professional sector's outlook, Empresaria said: "We do not expect to see a recovery in this business to pre-Covid-19 levels in the short term, but believe that this industry offers good growth potential for the group in the medium and long term. We have taken action to restructure this business, to right size its cost base and ensure it is well placed to rebuild as the market comes back.
"This remains our largest sector and while it has been hit hard by Covid-19, we believe this sector will be a significant profit driver for the group as we move forward and continue our focus on growing our temporary and contract business.
On the outlook as a whole, Chief Executive Rhona Driggs said: "Given the ongoing uncertainty and risks from Covid-19 we are cautious on the speed of recovery but remain confident in the group's ability to fulfil its longer-term growth ambitions. A great deal of progress has been made in incorporating new ways of working since the outbreak. We are confident that by maintaining a steadfast focus on our strategic priorities of operational excellence and productivity while ensuring we continue to manage our costs, we will emerge in a strong position to take advantage as and when demand returns."
Shares in Empresaria were flat on Wednesday morning at 40.50 pence.
By Anna Farley; [email protected]
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