LONDON - Empresaria Group plc, a global specialist staffing firm, has reported a challenging market environment that continues to impact its business operations. In a recent trading update, the company revealed a year-on-year net fee income decrease of 4% for the third quarter of 2024, an improvement over the 9% fall experienced in the first half of the year. Despite this, Empresaria anticipates a further downturn in the fourth quarter, with particularly difficult conditions in Germany and a continued market deterioration in the Asia-Pacific region.
The news sent shares of Empresaria down 23% on Tuesday.
The Group has adjusted its full-year profit expectations, now forecasting an adjusted profit before tax of no less than £2.0 million. This revised outlook reflects the persistent adverse trading conditions, which the company expects to extend into the first half of 2025.
To alleviate financial pressure, Empresaria's bank has agreed to relax the interest cover covenant from 4x to 3x for the December 2024 testing period. This adjustment is expected to help the company remain compliant with its financial covenants. As of September 30, Empresaria reported an adjusted net debt of £13.6 million with an available headroom of £6.5 million, excluding invoice financing.
In response to the ongoing market challenges, Empresaria is continuing to streamline its operations. The Group has completed its exit from another small operation in the second half of the year and is nearing completion on another. These strategic moves are part of a broader effort to simplify the Group's structure while maintaining stringent cost controls.
Empresaria's management remains confident that the actions being taken will position the company to capitalize on growth opportunities once market conditions improve. This statement is based on a press release from Empresaria Group plc.
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