Empresaria Group PLC Trading and operational update (5446R)
30 October 2019 - 6:00PM
UK Regulatory
TIDMEMR
RNS Number : 5446R
Empresaria Group PLC
30 October 2019
30 October 2019
Empresaria Group plc ("Empresaria" or the "Group")
Trading and operational update
Empresaria (AIM: EMR), the international specialist staffing
group, provides the market with an update on trading and
operations.
Trading update
At the time of our interim results we expected to meet market
forecasts. We identified that our Engineering sector was
experiencing an adverse impact from Brexit and challenging market
conditions and we expected the second half to remain difficult.
Despite actions taken to turn the business around, the UK
Engineering business has experienced further material declines in
revenue with the ongoing impact of Brexit, the insolvency of
certain key clients and the early closure of major projects. We now
expect the Engineering sector to deliver a full year adjusted
operating loss of approximately GBP1.5m. Due to this further
deterioration in trading, a material restructuring of the UK
Engineering business is underway and we expect this to be completed
before our next scheduled trading update in January.
The impact of Brexit has increased in the second half and with
the decision to delay Brexit again, we anticipate further months of
related uncertainty in the UK. In addition, the German automotive
sector slowdown has continued to impact our European operations.
The impact of these challenges has largely been offset by the
positive growth seen in many other businesses in the Group, but the
net impact at the full year is now expected to be negative.
We anticipate that the Group's full year adjusted profit before
tax is now expected to be at least GBP9m. Significant actions have
been taken in the impacted businesses in the UK and Germany to
right size their cost base with the full benefit of this expected
to come through in 2020.
Operational update
Empresaria has continued to move forward in aligning our
businesses in order to drive growth and
create size and scale with our key sectors. The Group's new
management team has reviewed the operations of the Group and is
accelerating the pace of change required to drive organic growth
and take action on underperforming businesses.
As noted at the half year, significant change is underway,
including aligning the Group into core sectors, identifying
synergies with brands and markets, implementing cross-selling
initiatives and identifying cost synergies such as rationalising
back office support. Our teams are embracing the changes and we are
seeing early positive signs from these initiatives.
Alongside these changes, in September, within our Professional
sector, we restructured and merged our marketing/creative brands,
Become and B&H, under our LMA brand. This change is expected to
drive both cost and sales synergies and create greater size and
scale within LMA.
Chief Executive Officer, Rhona Driggs, commented:
"While we are disappointed by the performance of our Engineering
sector and the challenging economic environment, we believe we are
taking the right actions for the long-term benefit of the Group. We
have a strong, profitable and cash generative business that is
being positioned for further growth in net fee income and
profitability."
Enquiries:
Empresaria Group plc via Alma PR
Rhona Driggs, Chief Executive Officer
Tim Anderson, Chief Financial Officer
Arden Partners (Nominated Adviser and
Broker)
Corporate Finance: John Llewellyn-Lloyd
/ Ciaran Walsh
Equity Sales: Tim Dainton 020 7614 5900
Alma PR (Financial PR) 020 3405 0205
Rebecca Sanders-Hewett empresaria@almapr.com
Sam Modlin
Hilary Buchanan
Notes for editors:
-- Empresaria Group plc is an international specialist staffing
group offering temporary and contract recruitment, permanent
recruitment and offshore recruitment services across 5 sectors:
Professional, IT, Engineering, Commercial and Offshore Recruitment
Services.
-- Empresaria operates in 21 countries across the world
including the 4 largest staffing markets of the US, Japan, UK and
Germany along with a strong presence elsewhere in Asia Pacific and
Latin America.
-- Empresaria applies a multi-brand, management equity
philosophy and business model, with group company management teams
holding significant equity in their own business.
-- Empresaria is listed on AIM under ticker EMR. For more
information: empresaria.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTMLBBTMBBTTRL
(END) Dow Jones Newswires
October 30, 2019 03:00 ET (07:00 GMT)
Empresaria (LSE:EMR)
Historical Stock Chart
From Apr 2024 to May 2024
Empresaria (LSE:EMR)
Historical Stock Chart
From May 2023 to May 2024