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. 
 
 

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August 12, 2021 02:00 ET (06:00 GMT)

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