Empresaria Group shares rise on jump in first half profits

18th Aug 2016 16:51

(ShareCast News) - Specialist staffing company Empresaria Group reported on Thursday a 30% increase in first half adjusted pre-tax profit, driven by growth in temporary job placements.Adjusted pre-tax profits rose to £3.7m in the six months to 30 June from £2.8m the same period a year earlier.Group revenues increased 15% to £106.1m, primarily on a strong performance in temporary and contract employment. Revenues rose 17% in temporary placements and increased 4% in permanent.Net fee income, a key performance indicator, grew by 13%. The split of net fee income was 34% from the UK, 30% from Continental Europe, 29% from Asia Pacific and 7% from the Americas.The company said a weaker sterling against most other currencies, due to Brexit, had a positive impact on the results. However, the lead up to the European Union referendum caused a slowdown in hiring in May and June as business confidence fell."Following the vote to leave the EU the market has stabilised and sales pipelines are holding up well, but it remains too early to see what impact this will have on our businesses for the rest of the year," the group said."Being globally diversified, we are well positioned to manage the effects of a slowdown in any particular sector or geography."Post-period, the company announced on 5 July that it had invested in an 82.6% share in Rishworth Aviation, a leading international recruitment company in the Aviation sector.Empresaria said it expects the acquisition to be earnings enhancing on an adjusted basis this year."We see strong growth opportunities across the group and we remain confident in our ability to deliver increasing profits.Shares rose 3.06% to 101p at the close.