Empresaria (EMR)

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The international specialist staffing group.

21-Nov-2017 – 127.5p – £62.5m – PER 8.61

Trading Update – A record adjusted PBT but expected to be below current market expectations.

Not enough here for me to like, Net Debt at 25%, a tiny Dividend and a not so great update.

24-Jan-2018 – 100.1p – £49.1m – PER 7.36

Trading Update For The 12 Months To End December 2017 – In-line, record PBT (up 20%) with diluted EPS up 9% or so. No outlook or update on current trading given.

Net Debt circa 30% of Mkt Cap is probably the main concern here. Most other fundamentals look OK but just don’t find myself tempted here.

14-Mar-2018 – 94.45p – £46.3m – PER 7.62

Results For The 12 Months To End December 2017 – The headline is “Record adjusted profit before tax and adjusted earnings per share”. Revenue is up 28% CC from £270.4m to £357.1m with Adjusted PBT up 14% to £11.0m versus £9.2m last time. It’s 6 consecutive years of double digit %growth in adjusted earnings per share and the Final Dividend is up by 15% to 1.32p (2016: 1.15p.

Quite like this with the main concerns probably being the Operating Margin and Net Debt. Enough to remain Neutral for now.

2-May-2018 – 82p – £40.2m – PER 6.43

AGM Statement & New CEO – Chief Exec retires and is replaced by the group FD – Seems fair enough. Group on course to meet FY expectations.

Always put off here by the Net Debt and the low Operating Margin which seems to have almost halved in 2 years. The strange thing is though, it looks like it may double next year. Will remain Neutral and keep an eye out for results (Interims due end of June).

25-Jul-2018 – 79p – £36.5m – PER 5.80

Trading Update – In-line to meet FY market expectations.

This doesn’t look too bad on a PER <6 but I still can’t get excited enough – I remain on the side-lines.

22-Aug-2018 – 86.5p – £42.4m – PER 6.70

Results For The 6 Months To End June 2018 – Revenue up 5% (CC), Adjusted PBT up 3% (CC) with Adjusted EPS down 12% on last year but, in-line with FY forecasts.

Still seems reasonable value on a PER of 6.70 but I remain on the side-lines.

13-Mar-2019 – 68p – £33.3m – PER 5.6

Results For The 12 Months To End December 2018 – Revenue up 5%, Adjusted PBT up 18%, Adjusted Diluted EPS down -3%. The Final Dividend is up 52%, with Net Debt at £17m why not pay some of it off instead!

Still seems reasonable value on a PER <6 but I will remain on the side-lines – Net Debt is a no go for me.

7-May-2019 – 74p – £36m – PER 6

AGM Statement – Om course to meet FY expectations (reliant on H2 weightings).

Even on a PER of 6 still doesn’t tempt me – Net Debt is high, Operating margin is low, (EPS) growth is forecast <2% per year and now, H2 weighting too!

24-Jul-2019 – 68p – £33m – PER 5.5

H1 Trading Update – Revenue up 6%, on course to deliver FY PBT in-line with market expectations.

Looks perhaps fairly valued here on a 2 Year view considering the Net Debt, Yield and Growth. Based on the latest Broker note this morning, in my opinion, this looks way overvalued on a 1 Year view and about fairly valued (at best) on a 2 Year view.

21-Aug-2019 – 64p – £31m – PER 5

Interim Results For The 6 Months To End June 2019 – Revenue flat, Adjusted PBT down -21% with EPS down -34%, still expects to deliver FY market expectations for profit.

Fairly valued here (at best).

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