Empresaria Share Discussion Threads

[busterdog2] 03/3/2015 10:47

Caladonia still selling, but at the rate they're going it will take until Xmas.

[battlebus2] 03/3/2015 09:33

Well we already know the results will be good so no worries for the future imv.

[foxman14] 03/3/2015 09:29

A step down on no significant trades! I hope this means we have a buyer for the remaining stock that caledonia want to offload and is not related to the forthcoming results!

[daneswooddynamo] 28/2/2015 20:17

interesting that the Hardman analyst sees neither much of a dividend increase or debt reduction in 2015 which may mean they are scheduled to buy in more minorities or have tipped the nod that there are plenty of acquisition/expansion prospects

anyway good to see price rising on better volumes and i think the caledonia overhang may not last much longer..the share price could motor higher very quickly

[jeff h] 28/2/2015 17:50

danes - the dividend is currently costing £156k and is covered 20 times by 2014 forecast earnings so plenty of scope for large dividend hikes.

Debt has been coming down and organic and acquisitive growth has taken place recently which perhaps means that 2015 will be one of consolidation with the cashflow funding dividend increases as well as debt reduction.

The last time I spoke with the company re moving to a progressive dividend policy I was expecting to be met with the "we use cash flow to prioritise debt reduction and investment in the business" mantra...however they seemed to understand where I was coming from and I was told that the issue has been discussed at board level and an update will be made with the forthcoming results.

Whether that means a change in policy or a re-iteration of the current policy I don't know and the company was unable to say due to being in a closed period...we will know more on Thursday.

Only real negative with the company besides the low dividend is the GBP exchange rate although it not just the relationship with the GBP and foreign currencies as the Indian subsidiary often bills in USD so the Rupee/USD exchange rate effects profits.

[pj 1] 26/2/2015 18:01

Sharesmag 19th Feb

Skin in the game
Recruiter explains why the 'Management Equity' model benefits staff and shareholders
One of the key challenges for the services sector, and those investing in the sector, is the attraction and retention of the key assets: talented people. Finding the right incentive structure is a major consideration for ambitious management teams to ensure the best people grow their business, and therefore ultimately creating value for shareholders. Management Equity is a proven incentive structure that works for both shareholders and employees.
In simple terms Management Equity means that managers who are responsible for running a business have a direct ownership in their business, making them highly incentivised to grow their profits into the long-term, so aligning their interests with the other shareholders. It attracts entrepreneurial people with ambition, who recognise that to grow significantly it would be beneficial to use the infrastructure of a larger group and share the gains.
Empresaria (EMR:AIM) is an international specialist staffing group that uses a Management Equity business model to attract and incentivise entrepreneurial managers who want to develop and grow their business. The original chairman of Empresaria, David Telling, successfully set up and developed the support service group MITIE (MTO), which stands for ‘Management Incentive Through Investment Equity’ and has participated in over 100 successful start-ups over its 25 year history.
The current chairman, Tony Martin, also used a management equity model to build firstly Select Appointments and then Vedior, until it was acquired by Randstad (RAND:AMS) in December 2007 in what was the largest deal in the staffing sector. This model is now being used by Empresaria to develop its multi-branded business, where the quality and retention of staff is a key factor in creating value for shareholders. It is a model that works, especially in the service sector and particularly recruitment.
In Empresaria’s model the subsidiary managers, who have the in-depth knowledge and expertise in their markets, have operational responsibility for their businesses and commercial autonomy, but they also have the security and financial backing of being part of a larger group. Often for businesses operating in the staffing sector, working capital demands can stunt the growth of ambitious companies. Being part of a group helps them overcome that short-term barrier for long-term shareholder gains. They also have access to ongoing support and advice.
Empresaria will always hold at least 51% of the shares to give it control and the ability to consolidate the results. A valuation methodology is agreed up front for the manager’s equity, which will eventually be acquired in full, typically after a five year minimum period although there is no obligation on Empresaria to purchase the shares. This is very different to an option where one party can force the other to sell or buy. Although day to day responsibility for running the business remains with the senior managers, there are clear guidelines on decisions to be agreed by all shareholders and all companies operate within a framework of central financial controls and strict reporting requirements.
What does this mean for shareholders?
In a people business this model helps to secure the key asset (talented and ambitious people) while the business and ultimately the shareholders directly benefit from the value they create. The entrepreneurs get the chance to access growth and wealth that would be much more difficult to achieve on their own and shareholders have access to a proven model that creates value. A win-win for all

[gucci] 26/2/2015 17:13

TIDMEMR

RNS Number : 8055C

Empresaria Group PLC

22 January 2015

Empresaria Group plc

("Empresaria" or the "Group")

Trading Update and Notice of Results

22 January 2015

Empresaria, the international specialist staffing group, today issues a trading update for the financial year ended 31 December 2014, ahead of announcing its final results on Thursday 5 March 2015.

The Board is pleased to advise that full year profitability will be slightly ahead of market expectations. The Board expects adjusted profit before tax growth of approximately 13% year on year, with net fee income approximately 3% ahead of the prior year. Total net debt has also reduced by 36% from GBP15.2m in 2013 to GBP9.8m in 2014.

Joost Kreulen, Chief Executive of Empresaria, said:

"The Group has continued to deliver on its brand led strategy, focused on growth markets and sectors, which has driven the strong increase in adjusted profit before tax and a continued reduction in overall debt levels. This has been achieved despite the investments made during the year, which are in line with our strategy of developing our core brands and investing in growth markets around the world.

During the year we have expanded our global presence through the opening of new offices in Hong Kong, Malaysia, Chile and Mexico. In March we announced the investment in a Dubai based professional search firm, which allowed Empresaria to enter into a new and dynamic geographic region.

We have also further strengthened our existing presence in the Creative and Digital arena with the investment in a UK based marketing recruitment firm in December. The full benefit of this investment will be seen in 2015. We continue to investigate further investment opportunities to enhance our existing regional and sector coverage and so help accelerate the growth of the business.

We are particularly pleased with the performance of the Group in Germany and India during the year. In Germany there was a significant improvement in profitability following the restructuring of operations in 2012 and 2013. In India the growth in profits is mainly coming from Offshore Recruitment Services in the US and UK, with strong levels of demand continuing into 2015.

We see exciting growth opportunities ahead and are confident in our ability to continue to deliver profitable growth."

[battlebus2] 26/2/2015 12:54

Good to here gucci, lots of headroom here imv..

[gucci] 26/2/2015 10:47

l2 firming

[cheshire man] 25/2/2015 15:56

Yes bb a nice move up today,would be good to get through the 50p :-)

[battlebus2] 25/2/2015 12:32

Good to see these continue to tick upwards, could be Caledonia have found a home for their holding as the selling seems to have slowed.

[daneswooddynamo] 23/2/2015 14:01

Jeff H - i doubt the dividend will rise much until the debt comes down further and whilst they appear to have plenty of expansion prospects. I wouldn't worry about the income return here...the capital return should be stellar

[battlebus2] 23/2/2015 11:29

Not too bad Cheshire Man and all the better after seeing these rise :))

[cheshire man] 23/2/2015 11:27

Some decent buy's too :-) good morning bb hope you are well !

[battlebus2] 23/2/2015 11:24

Yep great to see solid buying..

[jeff h] 23/2/2015 11:11

A bit of interest here today.

FD Spencer Wreford had a one page article in Shares mag last week highlighting the benefits of the company's management equity approach.

I recently contacted the company to once again ask for a change in dividend policy from a consistent to progressive one.

[daneswooddynamo] 17/2/2015 20:11

See post 556 for my rationale

[busterdog2] 17/2/2015 16:50

Do you know why they want to offload?

[daneswooddynamo] 17/2/2015 14:52

I think they would get rid of it immediately..if there were buyers to take the lot. Maybe the results statement will be the catalyst to facilitate that

[busterdog2] 17/2/2015 13:49

If that is the case they certainly don't appear to be in any rush.

[daneswooddynamo] 10/2/2015 10:29

Based on the company announcements on 12 and 26 january the answer appears to be yes

[busterdog2] 10/2/2015 10:17

Are Caledonia still actually reducing their holding?

[jeff h] 10/2/2015 08:52

Interesting interview with this subsid on LMA:TV....highlighting growth and strong prospects for 2015.

[gucci] 09/2/2015 15:17

just bought back in

[pj 1] 09/2/2015 15:13

Looking much stronger. A break of the 200mda would be nice (er)