Empresaria Share Discussion Threads

[davebowler] 28/7/2022 08:22

Singer ;
Strong H1 outturn with FY expectations reiterated Empresaria’s H1 update highlights NFI growth of 15% YoY to £32.6m (+15% in constant currency), with adj. operating profit also expected to be ahead YoY. Competition for talent intensified during H1, with high demand from clients combined with talent shortages and rising inflation. The recruitment landscape is therefore incredibly competitive, with the increased volume of available roles offset by a lack of candidates and increased levels of counter or competing offers. After a strong start to the year, the statement reiterates expectations for the full year. Whilst there is a note of caution around the potential impact of global macro uncertainties, management continues to see a positive medium term outlook and it continues to invest in its operations, with headcount up 5% (exc. Offshore Services which has grown headcount by 36%). Against a supportive demand outlook, we believe a Dec. ’22 P/E rating of 6.9x continues to look undemanding. We maintain our Buy recommendation. Event Empresaria’s H1 update confirms net fee income growth of 15% YoY to £32.6m (up 15% in constant currency), with Offshore Services up 94% and permanent placement up 23%. Adj. operating profit is also expected to be ahead of the prior year. The competition for talent intensified in H1. High demand from clients combined with talent shortages and rising inflation means that the recruitment landscape has been incredibly competitive. This provides both opportunities and challenges, with the increased volume of available roles offset by the lack of candidates and the increased levels of counter or competing offers. Global macro uncertainties are increasing and the impact of growing inflation in many of Empresaria’s markets is yet to be fully realised. It is yet to see any significant adverse impact, although it has seen some localised issues such as supply chain challenges for its clients in Germany. Adjusted net debt at 30th June 2022 reduced to £10.8m (31st December 2021: £14.0m) with headroom increased to £14.8m. The improvement reflected both the profit performance and a shift in mix towards permanent placements, which have a lower working capital requirement. Profits for the full year are expected to be in line with expectations. Empresaria continues to invest in its operations, growing headcount where it sees strong opportunities for growth, and continuing to invest in technology to improve its speed to deliver and provide greater productivity. It is also investing in its Offshore Services capacity. Overall headcount increased by 5% during H1 vs. the end of 2021 (exc. Offshore Services which has grown headcount by 36%).

[gripfit] 21/3/2022 12:14

Great results rubbish share price… you really couldn’t write it …

[km18] 17/2/2022 14:23

...from last year...

Company overview:Empresaria Group was founded in 1996 and is a global specialist staffing solutions provider operating in 6 sectors across 19 countries. The difference here lies in the focus on 6 sectors, not on everything which can be said for many of the competitors. EMR covers IT, Healthcare, Property, construction and Engineering, commercial, Professional and Offshore Recruitment. The group offers the full menu including temporary and contract staffing, permanent placement, executive search and recruitment process outsourcing. Strategy wise company is working on shifting its portfolio to 70:30 temp/perm to promote stability in profits. Several acquisitions have been made between 2010 and 2020, which as we know is transformed usually on the balance sheet under the goodwill section with the figure standing just above 26% of total assets. We should note that recent impairment of £5m (driving the Net income for 2020 in the red) should keep us at bay for the coming years. On a more positive note, growth has not been based on acquisitions only, as the company is actively investing in the technology facilitating the process for them and their clients.
a quick look on the results from 2020 confirms what we know was the trend. Lower revenue which as we already mentioned was impacted by impairment bill, making net income negative. The group wins a good mark on resilience as they did not lay on the shoulders of the shareholders and managed to retire debt and shares while still generating a positive cash flow. Latest update for the H1 2021 brings more points on the score board mainly from operational efficiency. The lower revenue of £129.8m (compared to both 2020 and 2019) was transformed in a higher profit before tax than the Covid-free 2019, not to mention the negative 2020. As a result, adjusted and diluted EPS are higher than the 2019 by 24% and 14% respectively. The lower revenue is explained by “the exit from loss-making operations and challenging  aviation industry”. The strong trading of H1, improving global economic conditions and operational improvements are a solid base for managements statement that they expect profits for the full year to be “significantly ahead of prior and current market expectations”...from WealthOracleAM

[gamwah] 02/2/2022 16:23

Bought a small amount more on drop today, seems really undervalued here!

[harrogate] 27/1/2022 07:46

They keep telling us good things. Undershoot on net debt looks impressive to me and given markets they are in 2022 should be good too. This really should be over a pound. The CEO seems impressive and focused and bringing some cohesion to the ragbag of businesses the previous management collected.

[gripfit] 22/12/2021 08:52

if you think this is going to do well with the recruitment sector on fire, Staffline should be a beneficiary aswell . ( i hold both)

[harrogate] 21/12/2021 09:39

Agreed. Per Singer note they are now on FY21 PE of 8.2 x. Given momentum it will be interesting to see what 22 looks like and while recruiters of this type never get high multiples this must be worth over 100p

[deadly] 21/12/2021 08:54

Shold be trading at a new high instead of languishing

"...Empresaria has continued to deliver a strong trading performance across multiple sectors in the final quarter of 2021. As a result, profit before tax for the year ending 31 December 2021 ("FY21") is now expected to be materially ahead of current market forecasts."

[davebowler] 26/10/2021 08:50

Singer -
Empresaria has experienced continued strong trading momentum, increasing into H2 as the Group continues to realise the benefits from operational initiatives and the improved economic environment. As a result, full year NFI is expected to be in the range of £57m-£59m with adj. PBT in the range of £7.4m-£7.9m. We take the mid-point and increase our PBT forecast by 14% to £7.7m. Given recent progress, the outlook looks increasingly positive for the Group, with an improving end market backdrop and continued benefits of recent operational initiatives. On FY21 earnings, the shares trade on a P/E rating of 11.5x, which looks undemanding against increasing evidence that a full recovery can be delivered.

[harrogate] 26/10/2021 06:15

Hardly a surprise that they have announced another upgrade given general recruitment markets. Should be £1 I think given momentum.

[harrogate] 12/8/2021 12:26

Thanks for that. The 6.5p looks very doable given they did 4.5p at H1. Not sure without looking back a bit but most recruiters are H2 weighted so maybe we will get another beat later

[davebowler] 12/8/2021 10:42

Allenby -
Forecasts raised – Following Empresaria’s mid-May trading update, we increased our adjusted profit before tax forecasts for 2021 by c.10% from £5.2m to £5.7m. Following the strong growth in profits in H1 and the Board’s increasing confidence regarding the outcome for the full year we are raising forecasts again moving our adjusted PBT expectations from £5.7m to £6.8m and adjusted EPS from 4.5p to 6.5p, putting the shares on a modest PER of 12.4x current year earnings.

[fillipe] 12/8/2021 08:01

1310 ...Most certainly!

Brilliant RNS today and a strong positive on the future Outlook.

f

[daneswooddynamo] 12/8/2021 07:21

What goes to 90 goes to 100

[harrogate] 12/8/2021 06:22

Decent numbers and full year above. Trading should really be decent everywhere except in the pilot division. Wonder if we can get back over £1. At this point in the cycle that's where we need to be. Hard to work out exactly what is working with all the COVID ups and downs but looks to me as if the new CEO is getting this moving. Fingers crossed

[harrogate] 28/7/2021 09:17

Wonder if this will have a bit of a run to the interims ? Most other recruiters are doing well at the moment

[daneswooddynamo] 14/6/2021 18:39

Maybe a tip sheet has inspired the recent move

[deadly] 13/6/2021 19:53

10% rise Friday but little interest it seems.

[harrogate] 03/6/2021 06:51

There seemed to be a bit of action here a few weeks ago but all back to sleep now. Based on other recruiters the current trading update - better than 2020 should really be more to come. If it is going to be taken private which was always my thought I would think now is the time.

[puku] 09/4/2021 14:33

started watching recruitment companies back in June, thought they were a good recovery bet > Staffline, Gattaca and Empresaria. Bought STAF at 27p and delighted with gain to 65/70p. Watched in frustration as GATC trebled from 45/50 to 150p, but couldnt grumble. EMR has not quite doubled, 30p to 56p, not sure why. Seems cheap so now bought in for the next move.

[harrogate] 08/4/2021 10:45

Not that I can see but free float is so small that it doesn't take much as we saw on the way down. Recruiting should be decent at the moment and I suspect they used the pandemic to take out costs and the 28% owned by chairman means a take private is always on the cards.

[deadly] 08/4/2021 09:18

Lively today, any news?

[tomps2] 18/3/2021 08:35

Empresaria (EMR) FY20 results today. Here's an overview by Rhona Driggs, CEO & Tim Anderson, CFO.



Video:



Podcast:

[harrogate] 28/1/2021 12:41

I didn't sell enough at what was clearly a too high a level for the performance. But I do think the new CEO is getting to grips and if/ when net fee income gets back to 2019 levels they should be pretty profitable. I am holding on as not much choice now. When a company issues a TU and not one share is traded it is a pretty good sign that they shouldn't be public.

[daneswooddynamo] 28/1/2021 12:13

Still hold a few of these from years back having fortunately sold a large chunk when it surged up to around 150p.

Have to confess I have been pleasantly surprised by some resilience in the business over the last 9 months. Shares are pretty much unloved so could be worth a top up and the company has been buying in stock.

Got to be a time when something happens to the ownership with the Chairman continuing to effectively control the company. At the end of the day I kind of wonder why the Company continues to be public, it’s not as though they ever seem to tap the market for equity.