Empresaria's profit rises 'slightly' ahead of expectations

24th Jan 2017 10:50

(ShareCast News) - Staffing group Empresaria's full year profit rose "slightly" ahead of expectations, while it continues it 'invest and develop strategy'.In an update for the 2016 calendar year, adjusted pre-tax profit before tax grew 23% year-on-year, a record profit level for the company. Net fee income increased 20% and diluted adjusted earnings per share rose 12%, compared to the prior year.As part of the company's 'invest and develop' strategy, it invested in two international brands last year, Rishworth Aviation, the second largest recruitment company in the Aviation sector which operates in the UK, continental Europe and Asia Pacific regions, and ConSol Partners, an IT recruiter with a focus on communications and mobile, cloud technologies and digital supply chain sectors, with operations in the UK, Continental Europe and the US.Chief executive Joost Kreulen, said: "Alongside the strong growth in a number of regions, we are particularly pleased with the performance of the two international investments made during the year: Rishworth Aviation and ConSol Partners, with both performing well. These, alongside the successful integration of Pharmaceutical Strategies, are all important illustrations of the success of the group's 'invest and develop' strategy and we look forward to the growth opportunity that these businesses have as part of the wider group."Overall, we are pleased with the record profit the group has delivered, once again showing the strength of the diversified business model and the strategy the group is delivering on. As such, we continue to see exciting growth opportunities for the group in 2017."There was growth across the company, with Headway in Germany, Skillhouse in Japan and Monroe in South East Asia all delivering "solid" growth year-on-year, while the company's businesses in Finland, Australia, China, India, Chile and the Technical & Industrial brands in the UK performed "well".The UK business has seen profitability fall year-on-year in the wake of the Brexit vote last June, however the company has reduced costs and is encouraged by the increased business activity as it moves into 2017.Weak economic conditions persisted in the second half for the Middle East as expected improvements did not materialise. The business has been restructured and the company expects an improved result this year.Empersaria's US business, Pharmaceutical Strategies, won a number of new clients while there was a short term impact on profits as it invested in the management team.Shares in Empresaria were up 2.06% to 124p to 1223 GMT.