International staffing services provider Empresaria Group managed to edge up its profit even though net fee income fell in 2012.
Net fee income declined by 6% to £43.9m, while underlying pre-tax profit edged ahead from £4.5m to £4.6m. That figure does not include £1.1m of restructuring charges in Germany, which was partly offset by the release of £400,000 worth of provisions – part of the previous year’s £2.2m exceptional. Acquiring minority interests helped earnings per share improve from 4p to 5p.
Continental Europe and the UK each generate just over one-third of net fee income. However, the decline in net fee income was in Continental Europe and this was the only division to generate a lower underlying operating profit. The biggest improvement in profit came from the Rest of the World, even though Chile was loss-making.
Empresaria says that UK market conditions were poor and the second half revenues were lower than those of the first half.
This year there should be a positive contribution from Singapore and the Germany and Chile operations should perform better.
Net debt fell from £15.7m to £14.5m. The dividend is unchanged at 0.35p a share.
At 36p a share, Empresaria is valued at £16m.
Allenby forecasts a 2013 profit of £5.5m, which values the company at six times prospective earnings.
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