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UK – Empresaria forecasts full year profit growth

23 January 2014

International recruiters Empresaria Group (EMR: LSE) announced today their trading update for the year ending 31 December 2013. The company is expected to release its full financial results on 11 March 2014.

The board stated that they are pleased to confirm that full-year profitability will be in line with market expectations. They expect adjust profit before tax growth of approximately +17%, year-on-year. Net fee income, however, is forecast to be marginally below 2012 levels.

Joost Kreulen, Chief Executive of Empresaria, commented: “We are encouraged by the progress of the Group, with underlying profit growth from all of our reporting regions. We are particularly pleased with the performance in Chile and Singapore, where losses in 2012 have been turned into profits in 2013.”

“The restructuring of operating units in German has been completed and no new worker claims can arise for retrospective pay, as they are now time barred. The business in Germany has been stabilised, is yielding an increase in underlying profitability, and is now in a position to benefit for the improving economic condition in the region,” he added.

Following a ruling in December 2010 by Germany’s highest labour court (BAG), collective bargaining agreements signed by staffing agencies with the Christian Unions (CGZP) was rendered null and void. As a result, many staffing firms had to pay their workers retroactively, any monies they should have been paid, had they been working under the correct terms and conditions. 

“We are looking at selective investment opportunities to expand the geographic reach of our operations either by way of investment in existing brands, or the acquisition of complementary brands, and expect to see continued organic growth from our existing businesses,” Mr Kreulen concluded.

In trading today, the company’s share price rose by +3.2% to £0.49, an increase of +85.4% compared with a year ago. Based on its current share price, the company has a market value of £21.6 million. 


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