EMR reported revenues of £106.1m and PBT of £3.1m
Companies: Empresaria Group plc
Empresaria Group (LSE: EMR), the international recruitment company, has announced interim results for H1 that show strong growth in revenue (+15%, 11% constant currency), and bumper growth in adjusted operating profit (+34%, 27% constant currency), and adjusted eps (+26%).
**Constant currencies are exchange rates that eliminate the effects of exchange rate fluctuations when calculating financial performance numbers for various financial statements. Companies with major foreign operations often use constant currencies when calculating their yearly performance measures.
The company's share price is up 28% since the start of July:
Broker Arden Partners welcomed the H1 earnings, saying the 26% growth reflects the success of the Group’s strategy:
"... a geographically diversified business and the growing weighting towards professional and specialist recruitment and also Temporary/Contract markets. The US acquisition of Pharmaceutical Strategies last year looks well timed given the strengthening of the US$, and the recent acquisition of Rishworth in New Zealand will be meaningfully earnings enhancing and is virtually self-funding."
Empresaria Group's H1 results are tracking well ahead of Arden's FY forecasts, and Arden are positive about H2:
"...stronger FX tailwinds likely for H2, we see upside potential to our numbers if current trading conditions are maintained, and firmly believe the shares have scope to double on a two-year view."
Hybridan covered the results in its AIM Breakfast report, saying the firm continues to look for suitable external investments to fill in gaps in sector and geographic coverage with a pipeline of interesting prospects.
Chief Exec Joost Kreulen said:
"Empresaria's diversified business model has delivered strong results for the first half of the year with adjusted profit before tax up 30% on the prior year... The stronger growth in temporary and contract income has progressed alongside further growth from professional and specialist job levels. Our aim is to protect against any particular slowdown in any region of the world or staffing industry sector. So far this has produced twelve consecutive quarters of balanced growth... We see good growth opportunities across our existing brands and from further potential investments. We remain confident in our ability to meet current market expectations."
Paul Scott carried out an excellent interview with the Empresaria CEO and FD last month, posted on the 8th July 2016. Click here to listen in.