International specialist staffing firm Empresaria Group (EMR: AIM) reported revenue of £187.9 million for the full year ending 31 December 2014, an increase of 2% in constant currency (CC) compared with £194.4 million in 2013.

In real terms, revenue declined by 3% due to adverse currency movements, in particular from Indonesia, Japan and the Eurozone. Revenue growth was also held back by lower volumes within the Technical & Industrial sector, due to the completion of a large airport project in the UK and a reduction in lower pay work in line with the company’s strategy of focusing on professional and specialist job levels. Finally, the impact of the prior year disposal and branch closures outweighed revenues generated from the businesses acquired during the year.

Nevertheless, good operating leverage saw operating profit grow by a strong 24% in constant currency.

Joost Kreulen, Chief Executive of Empresaria, commented: "2014 has been a strong year for the Group with robust profit growth and a number of strategic milestones achieved. Following our brand led strategy, we have continued to invest in our existing businesses, opening several new offices worldwide, and have seen particularly positive results in Germany, India, Japan, Thailand, and Australia.”

“The two investments made in the year, BW&P in Dubai and Ball and Hoolahan in the UK, were in line with our continuing strategy of maintaining a diversified balance of brands by geography and sector with Ball and Hoolahan strengthening our existing presence in the Creative and Digital arena and BW&P providing entry into a new geography. We expect both investments to contribute profitable growth for the Group in 2015.”

“We believe that market conditions are favourable and we look forward to growing our business further and creating value for our shareholders," he added.

By geography, Empresaria Group reported revenue during 2014 as follows:

In the UK revenue declined by 7% due to a reduction in the Technical & Industrial sector, which was predominantly driven by the completion of a large project coupled with the deliberate move away from low value work. This was partially offset by growth from Financial services and Domestic services, with the banking and insurance markets seeing a marked rise in confidence in the year. Net fee income in the UK grew by 1% to £15.9 million (2013: £15.8 million), but adjusting for the prior year branch closures and disposal of the payroll services business the underlying growth was 6%.

Revenue from Continental Europe was up 5% at £76.8 million with net fee income up 14% to £15.0 million both on a constant currency basis.

Germany was the main driver for profit growth, in spite of branch restructuring and cost reductions undertaken in previous years. Whilst the changes to the business were difficult, the result is an improved structure and solid foundation from which to grow the business. In Finland, the business returned to profit in the year, although market conditions remain difficult due to the severe economic situation.

At the beginning of 2015 Empresaria disposed of and closed down its underperforming small businesses in the Czech Republic and Slovakia.

The Rest of the World region reported a revenue increase of 10% to £45.4 million and net fee income grew by 9% to £13.7 million both on a constant currency basis. There were particularly good performances in Japan, India, Thailand, and Australia.

Due to the costs associated with the investments in new offices in Mexico City, Santiago, Kuala Lumpur, and Hong Kong, adjusted operating profit decreased to £1.2 million (2013: £2.1 million), although £0.3 million of this variance was due to adverse currency movements.

Empresaria has started to restructure its training business in Indonesia and its executive search business in China, where less favourable economic conditions have had a short-term negative impact on profit. The standalone search business in Malaysia was sold to management in January 2015 following a small loss in the year.

Looking forward, the company’s financial statement advised: “The Group has delivered a strong growth in profit and earnings per share, and has continued to deliver against the clear growth strategy. The Board is focused on driving further growth to build the business and enhance shareholder value. We see exciting opportunities for growth across our network, particularly from the investments made in 2014, and look forward to the year ahead with confidence.”

In trading today, Empresaria’s share price increased by 5.2% to £0.51, an increase of 9.4% compared with a year ago. Based on its current share price, the company has a market value of £22.7 million.