TIDMEMR
RNS Number : 3701I
Empresaria Group PLC
12 August 2021
12 August 2021
Empresaria Group plc ("Empresaria" or "Group")
Unaudited Interim Results for the six months ended 30 June
2021
Adjusted profit before tax up 67% and investing in future
growth
Empresaria Group plc (AIM: EMR), the global specialist staffing
group, announces its unaudited interim results for the six months
ended 30 June 2021.
Overview of the half year
% change % change
2021 2020 % change (CC)(2) 2019 % change (CC)(2)
------------------------- ---------- ---------- ----------- --------- ---------- --------- ---------
Revenue GBP129.8m GBP136.1m -5% -3% GBP175.5m -26% -24%
Net fee income GBP28.4m GBP28.2m +1% +4% GBP36.3m -22% -19%
Adjusted operating
profit(1) GBP4.3m GBP3.0m +43% +54% GBP4.3m -% +8%
Operating profit/(loss) GBP2.7m GBP(0.6)m GBP2.9m -7%
Adjusted profit
before tax(1) GBP4.0m GBP2.4m +67% GBP3.7m +8%
Profit/(loss) before
tax GBP2.4m GBP(1.2)m GBP2.3m +4%
Adjusted, diluted
earnings per share(1) 4.1p 1.9p +116% 3.3p +24%
Diluted earnings/(loss)
per share 1.6p (2.7)p 1.4p +14%
-- Strong recovery in profits reflecting market recovery and
benefits of operational investments - adjusted profit before tax up
67% on prior year and 8% ahead of 2019
-- Progress on net fee income recovery
o Q2 up 30% on prior year with growth across all sectors
o Q1 down 19% on prior year against a strong pre-COVID
comparator
o H1 up 1% on prior year, up 4% in constant currency
o Revenue and net fee income declined against 2019, primarily
due to the exit from loss-making operations and impact of
challenges in the aviation industry
-- As expected, net debt has increased reflecting working
capital outflows as demand has recovered. Adjusted net debt of
GBP16.5m (31 December 2020: GBP13.6m), with headroom remaining
strong at GBP12.4m
-- Demand returning to pre-pandemic levels in many markets with
skills shortages at a 15 year high
-- Operational investments and initiatives positioning the Group for long-term growth
o Development of regional structure to accelerate growth with
the appointment of highly experienced industry experts to regional
leadership roles
o Ongoing investment in technology - two more businesses live on
Bullhorn in the first half
1 Adjusted to exclude amortisation of intangible assets
identified in business combinations, impairment of goodwill and
other intangible assets, exceptional items, fair value charge on
acquisition of non-controlling shares and, in the case of earnings,
any related tax.
2 The constant currency (CC) movement is calculated by
translating the 2020 and 2019 results at the 2021 exchange
rates.
Chief Executive Officer, Rhona Driggs, commented:
"We have had an outstanding first half performance delivering a
67% year-on-year increase in adjusted profit before tax. Our H1
results reflect not only an improving global economic environment
but evidence the operational improvements we have put in place and
the acceleration of many of these initiatives last year.
These results would not have been possible without the hard
work, dedication and perseverance of our teams around the world.
They have clearly demonstrated their commitment to providing our
clients and candidates with outstanding service. As we celebrate
our 25th anniversary this year, I am thankful to our teams for
their ongoing support as we continue on our journey to evolve the
Group and strengthen our businesses.
I am pleased to have welcomed three new members to our senior
leadership team in 2021. These appointments illustrate our ability
to attract top talent and demonstrate the Group's potential and
ambition and will be instrumental in helping us deliver on our
growth strategies.
Profits for the full year are now expected to be significantly
ahead of prior year and current market expectations. We enter the
second half of the year with cautious optimism as there continues
to be a high degree of uncertainty around the ongoing impact of
COVID-19, and restrictions remain, or are increasing, in a number
of the Group's markets. We are confident that we will continue to
take advantage of market opportunities as they arise."
Investor presentation
In line with Empresaria's commitment to ensuring appropriate
communication structures are in place for all sections of its
shareholder base, management will deliver an online results
presentation open to all existing and potential investors via the
Investor Meet Company platform on Thursday 12 August 2021 at 4:30pm
UK time.
Questions can be submitted pre-event through the platform or at
any time during the live presentation. Management may not be in a
position to answer every question it receives but will address
those it can while remaining within the confines of information
already disclosed to the market.
Q&A responses will be published at the earliest opportunity
on the Investor Meet Company platform.
Investors can sign up for free via:
https://www.investormeetcompany.com/empresaria-group-plc/register-investor
.
Those who have already registered and requested to meet the
Company will be automatically invited.
- Ends -
Enquiries:
Empresaria Group plc via Alma PR
Rhona Driggs, Chief Executive Officer
Tim Anderson, Chief Financial Officer
Singer Capital Markets (Nominated
Adviser and Broker)
Shaun Dobson / James Moat 020 7496 3000
Alma PR (Financial PR) 020 3405 0205
Sam Modlin empresaria@almapr.com
David Ison
Hilary Buchanan
The investor presentation of these results will be made
available during the course of today on Empresaria's website:
www.empresaria.com
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 & Engineering,
Commercial and Offshore Recruitment Services.
-- Empresaria operates from locations 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 visit www.empresaria.com.
Cautionary statement regarding forward-looking statements
This document may contain forward-looking statements which are
made in good faith and are based on current expectations or
beliefs, as well as assumptions about future events. You can
sometimes, but not always, identify these statements by the use of
a date in the future or such words as "will", "anticipate",
"estimate", "expect", "project", "intend", "plan", "should", "may",
"assume" and other similar words. By their nature, forward-looking
statements are inherently predictive and speculative and involve
risk and uncertainty because they relate to events and depend on
circumstances that will occur in the future. You should not place
undue reliance on these forward-looking statements, which are not a
guarantee of future performance and are subject to factors that
could cause our actual results to differ materially from those
expressed or implied by these statements. Empresaria undertakes no
obligation to update any forward-looking statements contained in
this document, whether as a result of new information, future
events or otherwise.
Finance and operating review
The Group has delivered a strong recovery in profits in the
first half of 2021 with adjusted profit before tax up 67% to
GBP4.0m. In the second quarter net fee income was up 30% on prior
year as trading continued to recover while in the first quarter net
fee income was 19% down on a strong 2020 comparator. Total first
half net fee income grew by 1% (4% in constant currency).
Ongoing benefits from diversification
Our diversification by geography and sector has continued to
provide benefits in the first part of 2021. The majority of our
operations are seeing good recovery from COVID-19 including some
stand-out successes, such as our Healthcare sector, which has had a
record first half, driven by demand from the COVID-19 vaccination
and testing programmes.
This has enabled us to more than offset weaker results elsewhere
such as in our aviation staffing business. The aviation industry
continues to struggle and is not expected to fully recover in the
short-term. Our performance elsewhere has enabled us to invest in
restructuring and broadening our service offering to ensure we are
well placed when this industry recovers.
In Germany, our temporary recruitment business has performed
strongly, benefitting from the improving market. This has helped
make up for lower results in our logistics recruitment business,
which had a very strong 2020, but has been experiencing significant
challenges in finding workers as the labour market recovers,
primarily due to the lack of available talent and difficulty in
attracting candidates across borders.
Impact of operational initiatives demonstrated
We have had a continued focus on delivering improved efficiency
in our operations with some notable successes in 2021. In our US
healthcare business, an efficient operating model, utilising our
offshore recruitment services operation in India, has enabled us to
maximise the benefits in delivering to high demand from the
COVID-19 testing and vaccination programmes. We are also
increasingly leveraging our internal offshore services elsewhere in
the Group to help improve efficiencies and speed of delivery as
well as supporting our back-office functions.
At the end of 2020 we restructured our temporary recruitment
operations in Germany and this has enabled them to more effectively
take advantage of returning demand and deliver a strong first half
with significant improvements in profitability.
Over the last 18 months, we have moved a number of our
operations to a more focused sales and delivery model which has
enabled them to operate more efficiently and maximise their client
and candidate facing activities. The benefits of this have been
evident in 2021 such as in our Professional sector operations in
APAC.
Continuing to invest in the future
We have continued to invest in the Group to deliver on our
long-term ambitions. In the last few months, we have appointed
highly experienced industry professionals to regional leadership
roles in APAC, UK & Europe and, most recently, North America.
The addition of these proven industry leaders will enable the Group
to accelerate the implementation of its strategy and growth
plans.
We have continued to invest in technology with two more
businesses going live on our core technology platform as we
continue to implement this across the globe. As we add more
businesses, we expect the benefits to accelerate, providing greater
efficiencies, greater ability to cross-sell, and access to a global
database.
Outlook
We are encouraged by our strong start to 2021 and as a result,
profits for the full year are now expected to be significantly
ahead of the prior year and current market expectations. However,
we remain cognisant of the ongoing challenges in some of our key
markets and sectors. As a global business we operate in many
markets where lockdown restrictions remain in place or are
increasing, and where vaccination rollouts have been slower.
Globally, the ongoing impacts of COVID-19 remain uncertain and we
expect this to continue to present challenges in the short-term.
However, we have demonstrated success in establishing strong
COVID-19 protocols to keep our staff safe and healthy while
continuing to deliver to our clients and our candidates and this
proven success gives us confidence in navigating these challenges
to take advantage of market opportunities as they arise.
Sector Performance
Adjusted operating profit by sector
6 months 6 months
ended ended % change Year ended
30 June 30 June (constant 31 December
GBP'm 2021 2020 % change currency) 2020
------------------------------- --------- --------- --------- ----------- -------------
Professional 0.5 0.5 -% -% 0.2
IT 1.6 1.2 +33% +45% 1.8
Healthcare 0.9 0.1 +800% +800% 0.4
Property, Construction
& Engineering (0.1) (0.1) -% -% (0.2)
Commercial 2.0 1.5 +33% +33% 4.6
Offshore Recruitment Services 1.8 1.4 +29% +38% 2.6
Central costs (2.4) (1.6) +50% +50% (3.2)
--------- --------- -------------
Group 4.3 3.0 +43% +54% 6.2
--------- --------- -------------
Performance in each of the sectors is analysed below. The
increase in central costs reflects the unwinding of certain cost
saving measures implemented last year, the impact of lower charges
for share based payments and bonuses in 2020 and the investments
made in 2021 such as the addition of regional roles.
Professional
6 months 6 months
ended ended % change Year ended
30 June 30 June (constant 31 December
GBP'm 2021 2020 % change currency) 2020
--------------------------- --------- --------- --------- ----------- -------------
Revenue 21.6 35.3 -39% -40% 55.3
Net fee income 8.2 8.8 -7% -7% 15.4
Adjusted operating profit 0.5 0.5 -% -% 0.2
% of Group net fee income 28% 31% 28%
Excluding aviation, the Group's Professional sector had a strong
first half with net fee income up 8% and strong growth in profits
reflecting good performances across the sector which were reflected
in a 59% increase in net fee income in the second quarter compared
to 2020.
Our aviation recruitment business continues to see very subdued
demand with net fee income down more than 70% against 2020. We
remain cautious on the speed of recovery of this business but are
confident that it continues to have good growth potential in the
medium and long term and we are investing in restructuring and
broadening our service offering to ensure we are well placed for
when this industry recovers.
As a result of the performance in aviation, the sector's total
net fee income was down 7%, with profit in line with prior year.
The large drop in revenue is entirely driven by aviation with
temporary and contract forming the vast majority of this
business.
IT
6 months 6 months
ended ended % change Year ended
30 June 30 June (constant 31 December
GBP'm 2021 2020 % change currency) 2020
--------------------------- --------- --------- --------- ----------- -------------
Revenue 18.9 22.1 -14% -11% 41.8
Net fee income 6.5 6.7 -3% +2% 12.7
Adjusted operating profit 1.6 1.2 +33% +45% 1.8
% of Group net fee income 23% 24% 23%
The Group's IT sector has seen a 3% fall in net fee income (2%
rise in constant currency) compared to the first half of 2020 with
a 5% increase in the second quarter against the prior year. 2020
was a strong comparative period with a delayed impact on the sector
from COVID-19. As a result, revenue is down 14% year-on-year but
improvements in gross margin on temporary and contract work has
benefitted net fee income and this, combined with the benefits of
restructuring activity in the UK, has led to an increase in
adjusted operating profit of 33% compared to 2020.
Healthcare
6 months 6 months
ended ended % change Year ended
30 June 30 June (constant 31 December
GBP'm 2021 2020 % change currency) 2020
--------------------------- --------- --------- --------- ----------- -------------
Revenue 13.9 5.9 +136% +153% 13.2
Net fee income 2.2 1.2 +83% +100% 2.5
Adjusted operating profit 0.9 0.1 +800% +800% 0.4
% of Group net fee income 8% 4% 5%
The Group's Healthcare sector has performed extremely strongly
in 2021 with net fee income 83% ahead of the first half of 2020 and
adjusted operating profit up 800%. The COVID-19 vaccination and
testing programmes were identified as a key area of opportunity and
our investment in delivering to these programmes has been the key
driver of the sector's performance as demand has peaked through the
first half of 2021. Thanks to an efficient operating model, which
utilises our offshore recruitment services offering in India, the
improvement in net fee income has led to a very strong increase in
adjusted operating profit to GBP0.9m. We would expect this sector
to return to more normal levels of activity in the second half as
the COVID-19 related demand in our markets slows down.
Property, Construction & Engineering
6 months 6 months
ended ended % change Year ended
30 June 30 June (constant 31 December
GBP'm 2021 2020 % change currency) 2020
--------------------------- --------- --------- --------- ----------- -------------
Revenue 1.8 1.8 -% -% 3.6
Net fee income 0.4 0.4 -% -% 0.7
Adjusted operating loss (0.1) (0.1) -% -% (0.2)
% of Group net fee income 1% 1% 1%
The Group's Property, Construction & Engineering sector is
flat year on year and continues to see low levels of demand,
particularly in our business supplying sales staff to the new home
sector which has continued to operate under COVID-19 restrictions,
limiting the demand for temporary staff. We are looking to
diversify the business as well as positioning ourselves for when
the market recovers.
Commercial
6 months 6 months
ended ended % change Year ended
30 June 30 June (constant 31 December
GBP'm 2021 2020 % change currency) 2020
--------------------------- --------- --------- --------- ----------- -------------
Revenue 67.7 65.5 +3% +6% 132.3
Net fee income 8.4 8.0 +5% +8% 17.2
Adjusted operating profit 2.0 1.5 +33% +33% 4.6
% of Group net fee income 29% 28% 32%
The Group's Commercial sector has had a solid first half with
net fee income up 5% on 2020, with the second quarter up by 17%. We
have seen good recovery in our operations in Chile and in our
temporary staffing businesses in Germany and Austria. However, our
logistics business in Germany, which had a very strong 2020, has
seen a fall in net fee income. While demand remains strong it has
become increasingly difficult to fill these lower paid roles as the
wider economy recovers and there have been increased challenges in
attracting candidates into Germany from Eastern Europe. The
restructuring in our German temporary business at the end of 2020
has increased our efficiency and this, along with improvements
elsewhere has led adjusted operating profit to increase by 33%.
Offshore Recruitment Services
6 months 6 months
ended ended % change Year ended
30 June 30 June (constant 31 December
GBP'm 2021 2020 % change currency) 2020
--------------------------- --------- --------- --------- ----------- -------------
Revenue 6.4 5.8 +10% +21% 10.9
Net fee income 3.2 3.4 -6% +3% 6.1
Adjusted operating profit 1.8 1.4 +29% +38% 2.6
% of Group net fee income +11% 12% 11%
In Offshore Recruitment Services, net fee income has reduced by
6%, primarily driven by foreign currency fluctuations and the exit
from our loss-making operation in Dubai with effect from 1 January
which contributed GBP0.4m of net fee income in 2020. Excluding
these factors, net fee income increased and our operation in India,
which recovered strongly in the second half of 2020, has continued
to grow with high demand from clients in both the UK and the US.
Our headcount in this business is now at a record high with more
than 1,500 employees at 30 June. This has led to an increase in the
adjusted operating profit of this sector to GBP1.8m.
Regional summary
Adjusted operating
Revenue Net fee income profit
6 months 6 months 6 months 6 months 6 months 6 months
ended ended ended ended ended ended
30 June 30 June 30 June 30 June 30 June 30 June
GBP'm 2021 2020 2021 2020 2021 2020
-------------------------- --------- --------- --------- --------- ---------- ---------
UK 22.1 24.9 7.1 7.2 1.0 0.5
Continental Europe 45.8 44.4 7.0 6.3 1.6 1.2
Asia Pacific 25.7 39.0 9.8 10.6 2.4 2.1
Americas 36.7 28.1 5.0 4.4 1.7 0.8
Central costs/intragroup (0.5) (0.3) (0.5) (0.3) (2.4) (1.6)
--------- --------- --------- --------- ---------- ---------
Total 129.8 136.1 28.4 28.2 4.3 3.0
--------- --------- --------- --------- ---------- ---------
During 2021 the Group has implemented a new regional management
structure and intends to align its internal and external reporting
around this new structure with effect from 2022.
In the UK, revenue fell year on year but net fee income was
stable reflecting improved gross margins. Adjusted operating profit
increased as benefits from cost base changes made in 2020 continued
into 2021.
In Continental Europe, the overall results were positive with
growth in revenue, net fee income and adjusted operating profit.
Strong performances in our Healthcare business in Finland along
with our temporary staffing businesses in Germany and Austria more
than offset the impact of the reduced performance from our German
logistics recruitment operation.
In Asia Pacific, the reduction in revenue and net fee income was
driven by our business supplying the aviation sector. Adjusted
operating profit grew year on year, with good contributions from
our IT, Professional and Offshore Recruitment Services
operations.
In the Americas, we have seen significant growth, driven by our
US Healthcare business. Elsewhere our Commercial operation in Chile
also provided strong year-on-year growth.
Financing
Net finance costs remain low at GBP0.3m (2020: GBP0.6m) with the
reduction mainly due to interest on tax liabilities which were
settled in first half of the year resulting in the release of an
accrual compared to a charge in 2020.
Net cash inflow from operating activities was GBP2.0m (2020:
GBP15.4m). Free cash flow, which excludes movements related to
pilot bonds and includes cash outflows on leases, was an outflow of
GBP0.8m (2020: inflow of GBP11.8m). This reflects increases in
working capital requirements in the first half of the year as
trading levels have continued to recover.
Capital expenditure of GBP0.7m has been incurred in the first
half with the largest individual area of spend the investment in
our core technology platform. Cash outflow on the purchase of
shares in existing subsidiaries of GBP0.6m reflects the payment of
deferred consideration following the acquisition of shares in
ConSol Partners last year. The reinstatement of the Group's
dividend results in a GBP0.5m outflow, while a cash outflow of
GBP0.2m is shown for Empresaria shares purchased and transferred
into the Employee Benefit Trust.
Adjusted net debt (which excludes GBP0.7m cash held in respect
of pilot bonds and does not include lease liabilities recognised
under IFRS 16) was GBP16.5m as at 30 June 2021, an increase of
GBP2.9m from 31 December 2020.
A breakdown of the Group's facilities as at 30 June 2021 is
given below:
30 June 30 June 31 December
2021 2020 2020
GBPm GBPm GBPm
UK facilities
- Overdrafts 10.0 10.0 10.0
- Revolving credit facility 15.0 15.0 15.0
- Invoice financing facility 10.0 10.0 10.0
-------- -------- ------------
Total UK facilities 35.0 35.0 35.0
Continental Europe facilities 12.0 13.1 12.9
Asia Pacific facilities 3.0 2.7 3.2
Americas facilities 6.1 6.6 6.2
-------- -------- ------------
56.1 57.4 57.3
-------- -------- ------------
Undrawn facilities (excluding
invoice financing) 12.4 18.1 17.6
-------- -------- ------------
During the period the Group refinanced its GBP15m revolving
credit facility with a 2.5 year term to September 2023.
The level of undrawn facilities has reduced during the period as
a result of the working capital outflows as trading has
improved.
The revolving credit facility covenants are tested on a
quarterly basis. The covenants, and our performance against them as
at 30 June 2021 are as follows:
Measure Target Actual
Net debt to EBITDA < 4.5 times 1.9 times
Interest cover > 3.0 times 14.4 times
Debtor coverage > 1.5 times 2.7 times
Management equity
The Group previously operated a second generation equity scheme
under which it issued shares in subsidiaries to operational
management. This scheme ended for new participants in 2019 and has
been replaced by appropriate alternative schemes. Existing
shareholdings and commitments remain in place and continue to be
reflected in these accounts.
Based on the Group's results for the year ended 31 December
2020, and using applicable valuation mechanisms in shareholders'
agreements but ignoring holding period requirements, the potential
payment to acquire all those shares not held by Empresaria would be
approximately GBP9.0m were the maximum multiples to apply. Of this,
approximately 98% relates to first generation shares accounted for
as non-controlling interests in the consolidated financial
statements. There is no legal obligation on the Group to acquire
the shares held by management at any time.
Dividend
In line with prior years, the Board is not recommending the
payment of an interim dividend for 2021 (2020: nil).
12 August 2021
Condensed consolidated income statement
Six months ended 30 June 2021
Year
6 months 6 months ended 31
ended 30 ended 30 December
June 2021 June 2020 2020
Unaudited Unaudited
Notes GBPm GBPm GBPm
Revenue 3 129.8 136.1 256.5
Cost of sales (101.4) (107.9) (202.5)
----------- ----------- ----------
Net fee income 3 28.4 28.2 54.0
Administrative costs (24.1) (25.2) (47.8)
----------- ----------- ----------
Adjusted operating profit 3 4.3 3.0 6.2
Exceptional items 5 - - (0.2)
Fair value charge on acquisition
of non-controlling shares - (0.1) (0.3)
Impairment of goodwill 9 (0.6) - (1.6)
Impairment of other intangible
assets 10 (0.3) (2.6) (3.4)
Amortisation of intangible assets
identified in business combinations (0.7) (0.9) (1.7)
----------- ----------- ----------
Operating profit/(loss) 2.7 (0.6) (1.0)
----------- ----------- ----------
Finance income 4 0.1 0.1 0.2
Finance costs 4 (0.4) (0.7) (1.2)
----------- ----------- ----------
Net finance costs 4 (0.3) (0.6) (1.0)
----------- ----------- ----------
Profit/(loss) before tax 2.4 (1.2) (2.0)
Taxation 7 (1.4) (0.2) (1.2)
Profit/(loss) for the period 1.0 (1.4) (3.2)
----------- ----------- ----------
Attributable to:
Owners of Empresaria Group plc 0.8 (1.4) (3.1)
Non-controlling interests 0.2 - (0.1)
----------- ----------- ----------
1.0 (1.4) (3.2)
----------- ----------- ----------
Pence Pence Pence
Unaudited Unaudited
Earnings/(loss) per share
Basic 8 1.6 (2.8) (6.2)
Diluted 8 1.6 (2.7) (6.2)
Details of adjusted earnings per share are shown in note 8.
Condensed consolidated statement of comprehensive income
Six months ended 30 June 2021
6 months 6 months Year
ended ended ended 31
30 June 30 June December
2021 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
Profit/(loss) for the period 1.0 (1.4) (3.2)
---------- ---------- ----------
Other comprehensive income
Items that may be reclassified subsequently
to the income statement:
Exchange differences on translation
of foreign operations (1.4) 2.1 0.4
Items that will not be reclassified
to the income statement:
Exchange differences on translation
of non-controlling interests in foreign
operations (0.3) - (0.1)
---------- ---------- ----------
Other comprehensive (loss)/income for
the period (1.7) 2.1 0.3
---------- ---------- ----------
Total comprehensive (loss)/income for
the period (0.7) 0.7 (2.9)
---------- ---------- ----------
Attributable to:
Owners of Empresaria Group plc (0.6) 0.7 (2.7)
Non-controlling interests (0.1) - (0.2)
---------- ---------- ----------
(0.7) 0.7 (2.9)
---------- ---------- ----------
Condensed consolidated balance sheet
As at 30 June 2021
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited
Notes GBPm GBPm GBPm
Non-current assets
Property, plant and equipment 1.6 2.1 1.6
Right-of-use assets 8.1 8.8 9.0
Goodwill 9 31.1 34.9 32.5
Other intangible assets 10 9.6 12.3 10.5
Deferred tax assets 3.2 2.8 2.8
---------- ---------- ------------
53.6 60.9 56.4
---------- ---------- ------------
Current assets
Trade and other receivables 13 49.9 44.6 44.9
Cash and cash equivalents 12 21.4 25.0 20.8
---------- ---------- ------------
71.3 69.6 65.7
---------- ---------- ------------
Total assets 124.9 130.5 122.1
---------- ---------- ------------
Current liabilities
Trade and other payables 14 33.6 38.3 33.4
Current tax liabilities 1.9 1.5 1.1
Borrowings 11 26.2 31.9 32.2
Lease liabilities 4.7 5.7 5.3
---------- ---------- ------------
66.4 77.4 72.0
---------- ---------- ------------
Non-current liabilities
Borrowings 11 11.0 0.5 1.2
Lease liabilities 3.7 3.3 4.1
Deferred tax liabilities 2.5 2.7 2.4
---------- ---------- ------------
17.2 6.5 7.7
---------- ---------- ------------
Total liabilities 83.6 83.9 79.7
---------- ---------- ------------
Net assets 41.3 46.6 42.4
---------- ---------- ------------
Equity
Share capital 15 2.5 2.4 2.4
Share premium account 22.4 22.4 22.4
Merger reserve 0.9 0.9 0.9
Retranslation reserve 2.8 6.1 4.2
Equity reserve (10.2) (10.2) (10.2)
Other reserves (0.5) (0.7) (0.6)
Retained earnings 18.3 20.0 18.1
---------- ---------- ------------
Equity attributable to owners of Empresaria
Group plc 36.2 40.9 37.2
Non-controlling interests 5.1 5.7 5.2
---------- ---------- ------------
Total equity 41.3 46.6 42.4
---------- ---------- ------------
Condensed consolidated statement of changes in
equity
Six months ended
30 June 2021
Equity attributable to owners of Empresaria Group
plc
-------------------------------------------------------------------------------------
Share
Share premium Merger Retranslation Equity Other Retained Non-controlling Total
capital account reserve reserve reserve reserves earnings Total interests equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 31 December
2019 2.4 22.4 0.9 4.0 (9.8) (0.6) 21.4 40.7 7.3 48.0
----------------- -------- -------- --------- -------------- -------- --------- --------- ------ ---------------- -------
Loss for the
period - - - - - - (1.4) (1.4) - (1.4)
Exchange
differences on
translation
of foreign
operations - - - 2.1 - - - 2.1 - 2.1
----------------- -------- -------- --------- -------------- -------- --------- --------- ------ ---------------- -------
Total
comprehensive
income/(loss)
for the period - - - 2.1 - - (1.4) 0.7 - 0.7
Dividend paid to
non-controlling
interests - - - - - - - - (0.3) (0.3)
Acquisition of
non-controlling
shares - - - - (0.4) - - (0.4) (1.3) (1.7)
Share-based
payments - - - - - (0.1) - (0.1) - (0.1)
At 30 June 2020
(Unaudited) 2.4 22.4 0.9 6.1 (10.2) (0.7) 20.0 40.9 5.7 46.6
----------------- -------- -------- --------- -------------- -------- --------- --------- ------ ---------------- -------
At 31 December
2019 2.4 22.4 0.9 4.0 (9.8) (0.6) 21.4 40.7 7.3 48.0
----------------- -------- -------- --------- -------------- -------- --------- --------- ------ ---------------- -------
Loss for the
year - - - - - - (3.1) (3.1) (0.1) (3.2)
Exchange
differences on
translation
of foreign
operations - - - 0.2 - 0.2 - 0.4 (0.1) 0.3
----------------- -------- -------- --------- -------------- -------- --------- --------- ------ ---------------- -------
Total
comprehensive
income/(loss)
for the year - - - 0.2 - 0.2 (3.1) (2.7) (0.2) (2.9)
Dividend paid to
non-controlling
interests - - - - - - - - (0.5) (0.5)
Acquisition of
non-controlling
shares - - - - (0.4) - - (0.4) (1.4) (1.8)
Purchase of own
shares in
Employee
Benefit Trust - - - - - - (0.2) (0.2) - (0.2)
Share-based
payments - - - - - (0.2) - (0.2) - (0.2)
At 31 December
2020 2.4 22.4 0.9 4.2 (10.2) (0.6) 18.1 37.2 5.2 42.4
----------------- -------- -------- --------- -------------- -------- --------- --------- ------ ---------------- -------
Profit for the
period - - - - - - 0.8 0.8 0.2 1.0
Exchange
differences on
translation
of foreign
operations - - - (1.4) - - - (1.4) (0.3) (1.7)
----------------- -------- -------- --------- -------------- -------- --------- --------- ------ ---------------- -------
Total
comprehensive
(loss)/income
for the period - - - (1.4) - - 0.8 (0.6) (0.1) (0.7)
Dividend paid to
owners of
Empresaria
Group plc - - - - - - (0.5) (0.5) - (0.5)
Purchase of own
shares in
Employee
Benefit Trust - - - - - - (0.2) (0.2) - (0.2)
Exercise of
share options 0.1 - - - - (0.1) 0.1 0.1 - 0.1
Share-based
payments - - - - - 0.2 - 0.2 - 0.2
----------------- -------- -------- --------- -------------- -------- --------- --------- ------ ---------------- -------
At 30 June 2021
(Unaudited) 2.5 22.4 0.9 2.8 (10.2) (0.5) 18.3 36.2 5.1 41.3
----------------- -------- -------- --------- -------------- -------- --------- --------- ------ ---------------- -------
Condensed consolidated cash
flow statement
Six months ended 30 June
2021
6 months ended 30 June 2021 6 months ended 30 June 2020 Year ended 31 December 2020
Unaudited Unaudited
GBPm GBPm GBPm
Profit/(loss) for the
period 1.0 (1.4) (3.2)
Adjustments for:
Depreciation and software
amortisation 0.4 0.5 1.1
Depreciation of
right-of-use assets 2.9 3.5 6.3
Fair value charge on
acquisition of
non-controlling shares - - 0.3
Impairment of goodwill 0.6 - 1.6
Impairment of other
intangible assets 0.3 2.6 3.4
Amortisation of intangible
assets identified in
business combinations 0.7 0.9 1.7
Share-based payments 0.2 - (0.2)
Net finance costs 0.3 0.6 1.0
Taxation 1.4 0.2 1.2
---------------------------- ---------------------------- ----------------------------
7.8 6.9 13.2
(Increase)/decrease in
trade and other
receivables (6.3) 11.9 10.9
Increase/(decrease) in
trade and other payables
(including pilot bonds
outflow of GBP0.3m
(30 June 2020: nil, 31
Dec 2020: GBP0.5m)) 2.2 (1.5) (5.8)
---------------------------- ---------------------------- ----------------------------
Cash generated from
operations 3.7 17.3 18.3
Interest paid (0.5) (0.6) (1.1)
Income taxes paid (1.2) (1.3) (3.0)
---------------------------- ---------------------------- ----------------------------
Net cash inflow from
operating activities 2.0 15.4 14.2
---------------------------- ---------------------------- ----------------------------
Cash flows from investing
activities
Consideration paid for
business acquisitions (net
of cash acquired) - (0.1) (0.1)
Purchase of property, plant
and equipment, and
software (0.7) (0.4) (0.7)
Finance income 0.1 0.1 0.2
---------------------------- ---------------------------- ----------------------------
Net cash outflow from
investing activities (0.6) (0.4) (0.6)
---------------------------- ---------------------------- ----------------------------
Cash flows from financing
activities
(Decrease)/increase in
overdrafts ( 1.0) 1.0 3.8
Proceeds from bank loans 5 .0 1.0 1.8
Repayment of bank loans - (2.0) (5.7)
Increase/(decrease) in
invoice financing 0 .4 (3.4) (2.0)
Payment of obligations
under leases (3.1) (3.6) (6.2)
Purchase of shares in
existing subsidiaries (0.6) (1.0) (1.5)
Purchase of own shares in
Employee Benefit Trust (0.2) - (0.2)
Dividends paid to owners of
Empresaria Group plc (0.5) - -
Dividends paid to
non-controlling interests - (0.3) (0.5)
---------------------------- ---------------------------- ----------------------------
Net cash outflow from
financing activities - (8.3) (10.5)
---------------------------- ---------------------------- ----------------------------
Net increase in cash and
cash equivalents 1.4 6.7 3.1
Foreign exchange movements ( 0.8) 0.7 0.1
Cash and cash equivalents
at beginning of the period 20.8 17.6 17.6
---------------------------- ---------------------------- ----------------------------
Cash and cash equivalents
at end of the period 21.4 25.0 20.8
---------------------------- ---------------------------- ----------------------------
Bank overdrafts at
beginning of the period (22.1) (17.9) (17.9)
Decrease/(increase) in the
period 1.0 (1.0) (3.8)
Foreign exchange movements 0.5 (0.7) (0.4)
---------------------------- ---------------------------- ----------------------------
Bank overdrafts at end of
the period (20.6) (19.6) (22.1)
---------------------------- ---------------------------- ----------------------------
Cash, cash equivalents and
bank overdrafts at period
end 0.8 5.4 (1.3)
---------------------------- ---------------------------- ----------------------------
Notes to the interim financial statements
Six months ended 30 June 2021
1 Basis of preparation and general information
Empresaria Group plc is the Group's ultimate parent company. It is incorporated and domiciled
in England and its registered office address is Old Church House, Sandy Lane, Crawley Down,
Crawley, West Sussex, RH10 4HS, United Kingdom, its company registration number is 03743194
and its shares are listed on AIM, a market of London Stock Exchange plc.
The condensed set of financial statements have been prepared using accounting policies consistent
with UK-adopted IFRS. The same accounting policies, presentation and methods of computation
are followed in the condensed set of financial statements as applied in the Group's latest
annual audited financial. The Group does not anticipate any change in these accounting policies
for the year ended 31 December 2021. While the financial information included in these interim
financial statements have been prepared in accordance with IFRSs applicable to interim periods,
these interim financial statements do not contain sufficient information to constitute an
interim financial report as that term is defined in IAS 34.
The information for the year ended 31 December 2020 has been derived from audited statutory
accounts for the year ended 31 December 2020. The information for the year ended 31 December
2020 included herein does not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the
Registrar of Companies. The auditors reported on those accounts: their report was unqualified,
did not draw attention to any matters by way of emphasis and did not contain a statement under
section 498(2) or (3) of the Companies Act 2006. The interim financial information for 2021
and 2020 has been neither audited nor reviewed.
Going concern
The Group's activities are funded by a combination of long-term equity capital, revolving
credit facilities, term loans, short-term invoice financing and bank overdraft facilities.
The day to day operations are funded by cash generated from trading, invoice financing and
overdraft facilities. The Board has reviewed the Group's profit and cash flow projections
and applied sensitivities to the underlying assumptions. These projections suggest that the
Group will meet its obligations as they fall due with the use of existing facilities.
The majority of the Group's overdraft facilities fall due for renewal at the end of January
each year and, based on informal discussions the Board has had with its lenders, has no reason
to believe that these facilities will not continue to be available to the Group for the foreseeable
future. As a result, the going concern basis continues to be appropriate in preparing the
financial statements.
2 Accounting estimates and judgements
The preparation of interim financial statements requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported amount
of income, expense, assets and liabilities. The significant estimates and judgements made
by management were consistent with those applied to the consolidated financial statements
for the year ended 31 December 2020.
Notes to the interim financial statements
Six months ended 30 June 2021
3 Segment analysis
Information reported to the Group's Executive Committee, considered to be
the chief operating
decision maker of the Group for the purpose of resource allocation and
assessment of segment
performance is based on the Group's six operating sectors.
The Group has one principal activity, the provision of staffing and
recruitment services delivered
across a number of service lines being permanent placement, temporary and
contract placement,
and offshore recruitment services.
The analysis of the Group's business by sector is set out below:
Six months to 30 June Adjusted operating
2021 Revenue Net fee income profit/(loss)
GBPm GBPm GBPm
Professional 21.6 8.2 0.5
IT 18.9 6.5 1.6
Healthcare 13.9 2.2 0.9
Property, Construction &
Engineering 1.8 0.4 (0.1)
Commercial 67.7 8.4 2.0
Offshore Recruitment Services 6.4 3.2 1.8
Central costs - - (2.4)
Intragroup eliminations (0.5) (0.5) -
---------------- ----------------------- ----------------------
129.8 28.4 4.3
---------------- ----------------------- ----------------------
Six months to 30 June Adjusted operating
2020 Revenue Net fee income profit/(loss)
GBPm GBPm GBPm
Professional 35.3 8.8 0.5
IT 22.1 6.7 1.2
Healthcare 5.9 1.2 0.1
Property, Construction &
Engineering 1.8 0.4 (0.1)
Commercial 65.5 8.0 1.5
Offshore Recruitment Services 5.8 3.4 1.4
Central costs - - (1.6)
Intragroup eliminations (0.3) (0.3) -
------------ ----------------------- ----------------------
136.1 28.2 3.0
------------ ----------------------- ----------------------
Notes to the interim
financial statements
Six months ended 30 June
2021
Segment analysis
3 (continued)
Year ended 31 December Adjusted operating
2020 Revenue Net fee income profit/(loss)
GBPm GBPm GBPm
Professional 55.3 15.4 0.2
IT 41.8 12.7 1.8
Healthcare 13.2 2.5 0.4
Property, Construction &
Engineering 3.6 0.7 (0.2)
Commercial 132.3 17.2 4.6
Offshore Recruitment
Services 10.9 6.1 2.6
Central costs - - (3.2)
Intragroup eliminations (0.6) (0.6) -
-------------------------- -------------------------- --------------------------
Total 256.5 54.0 6.2
-------------------------- -------------------------- --------------------------
4 Finance income and costs
6 months ended 30 June 6 months ended 30 June Year ended 31 December
2021 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
Finance income
Bank interest receivable 0.1 0.1 0.2
0.1 0.1 0.2
-------------------------- -------------------------- --------------------------
Finance costs
Invoice financing - (0.1) (0.1)
Bank loans and overdrafts (0.3) (0.3) (0.5)
Interest on lease
obligations (0.2) (0.2) (0.4)
Interest on tax
liabilities 0.1 (0.1) (0.2)
(0.4) (0.7) (1.2)
-------------------------- -------------------------- --------------------------
Net finance costs (0.3) (0.6) (1.0)
-------------------------- -------------------------- --------------------------
Notes to the interim
financial statements
Six months ended 30
June 2021
5 Exceptional items
6 months ended 30 June 6 months ended 30 June Year ended 31 December
2021 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
Restructuring of marketing
and digital business - (0.1) (0.1)
Change of Chief Executive
Officer - (0.1) (0.2)
Closure of Mexico operation - 0.2 0.2
Restructure of senior
management - - 0.3
- - 0.2
----------------------- ----------------------- -----------------------
6 Reconciliation of profit/(loss) before tax to adjusted profit before tax
6 months ended 30 June 6 months ended 30 June Year ended 31 December
2021 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
Profit/(loss) before tax 2.4 (1.2) (2.0)
Exceptional items - - 0.2
Fair value charge on
acquisition of
non-controlling shares - 0.1 0.3
Impairment of goodwill 0.6 - 1.6
Impairment of other
intangible assets 0.3 2.6 3.4
Amortisation of
intangible assets
identified in business
combinations 0.7 0.9 1.7
Adjusted profit before
tax 4.0 2.4 5.2
----------------------- ----------------------- -----------------------
7 Taxation
The tax charge for the six month period is GBP1.4m (6 months ended 30 June 2020: GBP0.2m,
year ended 31 December 2020: GBP1.2m). On an adjusted basis (excluding adjusting items as
set out in note 6 and their tax effect), the effective tax rate is 38% (6 months ended 30
June 2020: 42%). The tax charge for the period is assessed using the best estimate of the
effective tax rates expected to be applicable for the full year, applied to the pre-tax income
of the six month period.
Notes to the interim financial statements
Six months ended 30 June 2021
8 Earnings per share
Basic earnings per share is assessed by dividing the earnings
attributable to the owners of Empresaria Group plc by the weighted
average number of shares in issue during the year. Diluted earnings
per share is calculated as for basic earnings per share but adjusting
the weighted average number of shares for the diluting impact
of shares that could potentially be issued. For 2021 and 2020
these are all related to share options. Reconciliations between
basic and diluted measures are given below.
The Group also presents adjusted earnings per share which it considers
to be a key measure of the Group's performance. A reconciliation
of earnings to adjusted earnings is provided below.
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2021 June 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
Earnings
Earnings attributable to owners of
Empresaria Group plc 0.8 (1.4) (3.1)
Adjustments:
Exceptional items - - 0.2
Fair value charge on acquisition of
non-controlling shares - 0.1 0.3
Impairment of goodwill 0.6 - 1.6
Impairment of other intangible assets 0.3 2.6 3.4
Amortisation of intangible assets identified
in business combinations 0.7 0.9 1.7
Tax on the above (0.1) (0.8) (1.2)
Non-controlling interests in respect
of the above (0.2) (0.4) (0.8)
Adjusted earnings 2.1 1.0 2.1
------------- ----------- -------------
Number of shares Millions Millions Millions
Weighted average number of shares -
basic 50.0 50.4 50.3
Dilution effect of share options 1.2 0.9 1.3
------------- ----------- -------------
Weighted average number of shares -
diluted 51.2 51.3 51.6
------------- ----------- -------------
Earnings per share Pence Pence Pence
Basic 1.6 (2.8) (6.2)
Dilution effect of share options - 0.1 -
------------- ----------- -------------
Diluted 1.6 (2.7) (6.2)
------------- ----------- -------------
Adjusted earnings per share Pence Pence Pence
Basic 4. 2 2.0 4.2
Dilution effect of share options (0.1) (0.1) (0.1)
------------- ----------- -------------
Diluted 4. 1 1.9 4.1
------------- ----------- -------------
The weighted average number of shares (basic) has been calculated
as the weighted average number of shares in issue during the year
plus the number of share options already vested less the weighted
average number of shares held by the Empresaria Employee Benefit
Trust. The Trustees have waived their rights to dividends on the
shares held by the Empresaria Employee Benefit Trust.
Notes to the interim financial statements
Six months ended 30 June 2021
9 Goodwill
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
At 1 January 32.5 33.5 33.5
Business combinations - 0.1 -
Impairment charge (0.6) - (1.6)
Foreign exchange movements (0.8) 1.3 0.6
---------- ---------- ------------
31.1 34.9 32.5
---------- ---------- ------------
In line with IFRS the Group reviewed its assets for indications
of impairment as at 30 June 2021. As a result, an impairment charge
of GBP0.6m has been recognised in respect of the aviation business.
The aviation sector has been hit hard by COVID-19 and we do not
expect a short-term recovery to pre-COVID levels.
10 Other intangible assets
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
Cost
At 1 January 24.6 24.3 24.3
Additions 0.4 - 0.3
Foreign exchange movements (0.5) 0.6 -
---------- ---------- ------------
24.5 24.9 24.6
---------- ---------- ------------
Accumulated amortisation
At 1 January 14.1 8.8 8.8
Charge for the year 0.7 0.9 1.8
Impairment 0.3 2.6 3.4
Foreign exchange movements (0.2) 0.3 0.1
---------- ---------- ------------
14.9 12.6 14.1
---------- ---------- ------------
Net book value 9.6 12.3 10.5
---------- ---------- ------------
In line with IFRS the Group reviewed its assets for indications
of impairment as at 30 June 2021. As a result of these impairment
reviews, an impairment charge of GBP0.3m (30 June 2020: GBP2.6m)
has been booked in respect of our aviation business. The aviation
sector has been hit hard by COVID-19 and we do not expect a short-term
recovery to pre-COVID levels.
Notes to the interim financial statements
Six months ended 30 June 2021
11 Borrowings
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
Current
Bank overdrafts 20.6 19.6 22.1
Invoice financing 5.2 3.4 4.9
Bank loans 0.4 8.9 5.2
---------- ---------- ------------
26.2 31.9 32.2
---------- ---------- ------------
Non-current
Bank loans 11.0 0.5 1.2
---------- ---------- ------------
11.0 0.5 1.2
---------- ---------- ------------
Borrowings 37.2 32.4 33.4
---------- ---------- ------------
The following key bank facilities are in place at 30 June 2021:
A revolving credit facility of GBP15.0 million, expiring in September
2023. As at 30 June 2021 the amount outstanding is GBP10.0 million
(30 June 2020: GBP8.0 million). In March 2021 the revolving credit
facility was refinanced. This facility is based on the SONIA (Sterling
Over Night Index Average) interest rate. The margin on the facility
is based on the Group's net debt to EBITDA ratio and ranges from
2.0% to 3.0%.
Term loan facilities are in place in Japan totalling GBP1.0m (30
June 2020: GBP0.5m) with an average interest rate of 0.52% (30
June 2020: 0.65%).
Overdraft facilities are in place in the UK with a limit of GBP10.0m.
The balance on this facility as at 30 June 2021 was GBP6.9m (30
June 2020: GBP6.4m). The interest rate was fixed at 1% above applicable
currency base rates. A $2.0m overdraft facility to provide working
capital funding in the US had a balance as at 30 June 2021 of $2.0m
(30 June 2020: $1.5m). Interest on this USD facility is payable
at 2% over LIBOR. A EUR13m overdraft facility is also in place
in Germany. The balance at 30 June 2021 was EUR11.8m (30 June 2020:
EUR9.2m) and interest is payable at EURIBOR plus 2.3%. A NZ$2.0m
overdraft facility is in place in New Zealand. The overdraft has
not been utilised and attracts interest at 2% over the base lending
rate. Bank overdrafts in the table reflects the requirement under
IFRS to gross up certain cash and overdraft balances which are
netted for banking facility purposes. This amount is GBP1.9m as
at 30 June 2021 (30 June 2020: GBP3.0m).
The UK facilities are secured by a first fixed charge over all
book and other debts given by the Company and certain of its UK,
German and New Zealand subsidiaries.
There is an invoice financing facility in the UK of GBP10.0m (30
June 2020: GBP10.0m). As at 30 June 2021 the amount outstanding
was GBP3.3m (30 June 2020: GBP3.4m). Interest is payable at 1.47%
over UK base rate. There are also invoice financing facilities
in Chile of GBP3.9m (30 June 2020: GBP3.8m). As at 30 June 2021
the amount outstanding was GBP1.9m (30 June 2020: GBPnil). Interest
is payable at approximately 5%.
Notes to the interim financial statements
Six months ended 30 June 2021
12 Adjusted net debt
30 June 30 June 31 December
a) Adjusted net debt 2021 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
Cash and cash equivalents 21.4 25.0 20.8
Less cash held in respect of pilot
bonds (0.7) (1.5) (1.0)
----------- ----------- -------------
Adjusted cash 20.7 23.5 19.8
Borrowings (37.2) (32.4) (33.4)
Adjusted net debt (16.5) (8.9) (13.6)
----------- ----------- -------------
The Group presents adjusted net debt as its principle debt measure.
Adjusted net debt excludes cash held in respect of pilot bonds
within our aviation business. Where required by the client, pilot
bonds are taken at the start of the pilot's contract and are repayable
to the pilot or the client during the course of the contract or
if it ends early. There is no legal restriction over this cash,
but given the requirement to repay it over a three year period,
and that to hold these is a client requirement, cash equal to
the amount of the bonds is excluded in calculating adjusted net
debt.
6 months 6 months Year ended
ended 30 ended 30 31 December
b) Movement in adjusted net debt June 2021 June 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
At 1 January (13.6) (19.1) (19.1)
Net increase in cash and cash equivalents
per consolidated cash flow statement 1.4 6.7 3.1
Net (increase)/decrease in overdrafts
and loans (4.0) - 0.1
(Increase)/decrease in invoice
financing (0.4) 3.4 2.0
Foreign exchange movements (0.2) 0.1 (0.2)
Adjusted for decrease in cash held
in respect of pilot bonds 0.3 - 0.5
(16.5) (8.9) (13.6)
----------- ----------- -------------
Notes to the interim financial
statements
Six months ended 30 June 2021
13 Trade and other receivables
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
Gross trade receivables 42.3 35.3 37.9
Less provision for impairment of
trade receivables (1.0) (0.9) (0.9)
---------- ---------- ------------
Trade receivables 41.3 34.4 37.0
Prepayments 1.5 2.0 1.5
Accrued income 4.1 4.4 3.6
Corporation tax receivable 1.2 0.9 1.0
Other receivables 1.8 2.9 1.8
---------- ---------- ------------
49.9 44.6 44.9
---------- ---------- ------------
14 Trade and other payables
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited
GBPm GBPm GBPm
Current
Trade payables 1.5 1.9 1.6
Other tax and social security 7.0 11.0 8.0
Pilot bonds 0.7 1.5 1.0
Client deposits 0.5 0.6 0.4
Other payables 5.8 1.2 1.3
Accruals 18.1 21.4 20.5
Deferred consideration - 0.7 0.6
33.6 38.3 33.4
---------- ---------- ------------
Pilot bonds represent unrestricted funds held by our aviation
business at the request of clients that are repayable to the pilot
over the course of a contract, typically three years. If the pilot
terminates their contract early, the outstanding bond is payable
to the client. For this reason, the bonds are shown as a current
liability.
Notes to the interim financial
statements
Six months ended 30 June 2021
15 Share capital
30 June 30 June 31 December
2021 2020 2020
Unaudited Unaudited
Issued, allotted and fully paid
Ordinary shares of 5p each - number
of shares 49,379,132 49,019,132 49,019,132
Ordinary shares of 5p each - GBPm 2.5 2.4 2.4
During the 6 months ended 30 June 2021 360,000 shares were issued
to satisfy the exercise of share options.
The Company has one class of Ordinary Share which carried no rights
to fixed income. All ordinary Shares are entitled to receive dividends
as declared from time to time and are entitled to one vote per
share at meetings of the Company. All shares rank equally with
regard to the Company's residual assets.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR BIGDIIGBDGBB
(END) Dow Jones Newswires
August 12, 2021 02:00 ET (06:00 GMT)
Empresaria (LSE:EMR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Empresaria (LSE:EMR)
Historical Stock Chart
From Apr 2023 to Apr 2024