Empresaria Group Faces Challenges as Profit Forecast Falls Short
By Elena Vardon
Shares of Empresaria Group, a staffing company, tumbled 27% on Thursday as the company announced that its adjusted pretax profit for 2023 is expected to be lower than market expectations. The challenging conditions in the market, including softening demand and slower hiring decisions, have contributed to this decline.
At 0834 GMT, the company's shares were down 14 pence at 38 pence.
The company estimates that its full-year adjusted pretax profit will reach approximately £5 million ($6.5 million). Although specific market expectations were not disclosed, analysts' calculations from FactSet suggest that the projected adjusted pretax profit for 2023 is £6.0 million. In comparison, Empresaria Group reported a pretax profit of £9.0 million in 2022.
Unfortunately, the company has not witnessed any improvements in the trading conditions that adversely affected its performance in the first half of the year. Additionally, it does not anticipate any significant changes in the second half.
For the six months ended June 30, the London-listed group reported a 9% year-on-year decrease in net-fee income, which amounted to £29.7 million.
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