A brief year end update from Empresaria confirms it expects adj. PBT to be at least in line with market expectations, having rebased forecasts in October. Net fee income reduced by 6% YoY on a LFL/constant currency basis in FY24 or by 12% reported. This reflects well flagged challenging market conditions in the year, with reductions across all regions exc. the Americas. Temporary and contract NFI was resilient, increasing by 2% LFL, whilst permanent recruitment reduced by 21%. Net debt increased to £15.3m at Dec. ’24 (SCMe: £15.0m, FY23: £10.8m). Challenging market conditions have continued to persist throughout 2024. Whilst management is focused on positioning the Group for growth, it indicates no sign of improvement in near term market conditions and it confirms it will not pay a dividend. Whilst we see intrinsic value in the business, given no current signs of recovery, we keep our recommendation Under Review.
