Trading and COVID-19 Update and Notice of AGM

8 April 2020

 

Empresaria Group plc

 

("Empresaria" or the "Company")

 

Trading and COVID-19 Update and Notice of AGM

 

Empresaria, the global specialist staffing group, announces the following update on trading, in light of COVID-19 and details of its AGM.

 

Trading in 2020 and outlook

 

The Group had a strong start to the financial year, delivering solid growth in operating profit in the first two months demonstrating the benefits of the operational initiatives implemented in 2019.

 

With the impacts of COVID-19 being felt from mid-March, we have experienced a significant reduction in demand across many of our businesses with the impact varying by location and sector.

 

We have acted swiftly to implement a range of measures to protect us from the financial impact of COVID-19. These include:

·   Managing our cost base through reductions in headcount and salary, reduced hours, furlough and unpaid leave;

·     Halting discretionary spend and negotiating reductions in committed or essential spend; 

·     Where available, taking up government initiatives, subsidies and other support across our locations;

·    Putting in place and exploring further cash flow measures, such as the deferral of capital expenditure and the deferral of tax payments where agreed with tax authorities.

 

Given the uncertainties created by the pandemic and the government restrictions in place across the world, the extent of the impact on the Group's earnings for 2020 is unknown at this stage and it is therefore not possible to provide any meaningful guidance until there is more clarity.

 

We are confident that with the measures we have introduced, the Group is well placed to weather the current uncertainties and deliver on its long-term growth ambitions.

 

Operational update

 

The health and safety of our employees, clients and candidates is of paramount importance. The majority of our teams across the globe are working from home and our infrastructure allows full business continuity, ensuring our teams are able to fully service clients throughout this time.

 

Dividend

 

The Board considers it to be prudent in these unprecedented times to cancel the proposed final dividend for the 2019 financial year, in order to strengthen the balance sheet and aid liquidity. The Board remains committed to paying dividends as soon as circumstances allow.

 

Financial position

 

As at 29 February 2020, the Group's adjusted net debt was £15.1m, with headroom of £11.9m (excluding invoice financing headroom).  The Group is in close communication with its principle bankers and is in the early stages of refinancing it's £14m RCF facility, which expires in June 2021.  The bank remains supportive and the Board believes, with the actions taken and under consideration, the Group has sufficient liquidity to cope with the current uncertainties.

 

Notice of AGM

 

The 2020 Annual General Meeting will be held at 1 p.m. on Tuesday 26 May 2020 at Old Church House, Sandy Lane, Crawley Down, Crawley, West Sussex RH10 4HS. In light of COVID-19, should the current government restrictions remain in place up to the AGM, shareholders are requested not to attend the AGM in person. Full details of the arrangements for the AGM are set out in the Notice of AGM.

 

The Annual Report and Accounts for the year ended 31 December 2019 and Notice of AGM are available on the Company's website www.empresaria.com and have been posted to those shareholders who have elected to receive a hard copy.

 

Chief Executive Officer, Rhona Driggs, commented:

 

"This is an unprecedented time globally and we are amongst many businesses feeling the effects of the pandemic. Notwithstanding this, I am proud to say that our teams have worked tirelessly to ensure that we continue to deliver to our clients and candidates.

 

"While the wider uncertainty remains, we are confident that the measures we have introduced, alongside the natural diversity of our business across sector and geography, will ensure that the Group is well placed to weather the current challenges and deliver on its long-term growth ambitions."

 

 

 

Enquiries:

Empresaria Group plc Rhona Driggs, Chief Executive Officer Tim Anderson, Chief Financial Officer	via Alma PR
N+1 Singer (Nominated Adviser and Broker) Shaun Dobson / James Moat	020 7496 3000
Alma PR (Financial PR) Rebecca Sanders-Hewett Sam Modlin David Ison Hilary Buchanan	020 3405 0205 [email protected]

 

Notes for editors:

§ Empresaria Group plc is a global specialist staffing group offering temporary and contract recruitment, permanent recruitment and offshore recruitment services across 6 sectors: Professional, IT, Healthcare, Property, Construction and Engineering, Commercial and Offshore Recruitment Services.

 

§ Empresaria operates in 20 countries across the world including the 4 largest staffing markets of the US, Japan, UK and Germany along with a strong presence elsewhere in Asia Pacific and Latin America.

 

§ Empresaria is listed on AIM under ticker EMR. For more information: empresaria.com