United Kingdom – Empresaria net commission income recovery continues and improves adjusted pre-tax profit


January 27, 2022

Empresaria (EMR:LSE), the UK-based international specialist recruitment group, provided a business update for the year ended December 31, 2021, before announcing its annual results on March 17, 2022.

The group said the recovery in net fee income continued, with a second half of 2021 up 26% compared to the second half of 2020 in constant currency and the full year up 14% compared to last year. previous year in constant currency.

Empresaria’s diversity by sector and by geography, which has helped to mitigate the impacts of Covid-19 in 2020, means that the company is seeing differences in growth rates within the group with very strong growth in some areas, such as healthcare and offshore recruitment services, partially offset by tougher conditions elsewhere, such as in trade (logistics) and professional (aviation).

Net commissions by sector

(millions of pounds sterling) 2021 2020 Change Foreign exchange (in constant currency)
Professional 17.6 15.4 14% 16%
THIS 13.3 12.7 5% ten%
Health care 4.2 2.5 68% 75%
Real estate, construction and engineering 0.7 0.7
Commercial 17.2 17.2 4%
Overseas Recruitment Services 7.7 6.1 26% 35%
Intragroup (1.2) (0.6) 100% 100%
Total 59.5 54.0 ten% 14%

The group’s Professional sector saw a strong recovery in 2021. This was despite the continuing challenges in aviation, particularly in Asia, which was previously a significant contributor to this sector. Excluding aviation, net commissions were up 27% with solid performance across all transactions. Overall net commission income increased by 16% at constant exchange rates.

In IT, net commissions increased by 10% at constant exchange rates. This was driven by strong performances in the US and Japan, offset by a decline in net commission income in the UK, where the number of temporary staff has been slow to recover.

The group’s Healthcare sector had a record year with net commissions up 75% compared to 2020 at constant exchange rates. This was led by the group’s US operations where additional demand was driven by Covid-19 vaccination programs.

In Real Estate, Construction and Engineering, the group’s smallest sector, net commissions were in line with the previous year, as demand for temporary workers for the sale of new homes remained weak.

Empresaria’s Commercial segment recorded a 4% increase in net commissions in constant currency. The performance of this sector was mixed with strong recoveries in the temporary work activity in Germany and in operations in Austria and Chile. However, this was offset by lower net commission income in Peru and in the logistics sector in Germany, which, after a strong 2020, encountered significant difficulties in filling lower-paying positions as the he economy and the labor market have recovered.

In Offshore Recruitment Services, net commissions increased 35% in constant currency after another strong year. The recovery, combined with further growth, was swift in 2021, with the workforce increasing by more than 900 to end the year at over 2,000.

In 2021, the group has made a significant investment in its senior management with the appointment of highly experienced industry professionals to new roles leading the UK and Europe, APAC and Europe. North America.

“We are already seeing the benefits of this strengthened team accelerating the execution of our strategy and growth plans across the group,” the company said. “In 2022, we continue to benefit from favorable market conditions across all parts of the group. We are investing in growing our sales and recruiting teams in targeted markets to capitalize on the market recovery and accelerate long-term growth.

Empresaria said its adjusted profit before tax is expected to be slightly above recently updated market expectations.

Rhona Driggs, CEO of Empresaria, said: “We are pleased with the recovery in our net commission income and encouraged by the very strong recovery in our expected earnings. Our Healthcare and Offshore Recruitment Services sectors both performed particularly strongly with record levels of net commission income. Although challenges remain in some of our markets, they have been offset by positives elsewhere, underscoring the benefits of being a geographically and operationally diverse group.

“As the year progressed, we moved from recovery mode to growth mode while continuing to make significant investments to drive the future growth of the group,” Driggs continued. “This includes the appointment of three new senior executives who, together with our current management, will be instrumental in accelerating the execution of the group’s strategy. We also continued to make progress in implementing our technology with nine additional operations going live on our common front office platform during the year.

“As part of our strategy to accelerate the growth of the group, we are making targeted investments in our sales and recruitment teams for 2022 in areas where we see strong long-term growth opportunities and to ensure that we realizing the benefits we are seeing from the talent shortages and salary inflation that clients are experiencing in some of our markets,” Driggs added. “Looking forward, we continue to see positive signs on many of the our markets. We are well positioned with the right management team and the right structure, and we look forward to 2022 with optimism.”

Shares of Empresaria Group last traded at £84.50, up 0.60% on the day and 10.11% below its 52-week high of £94.00, set on August 17, 2021. The company has a market capitalization of £41.88 million.

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