Empresaria Group, a UK-based staffing company, has reported a decline in adjusted pretax profit and income in the first half of the year. The company also expressed concerns about the lack of improvement in the market for the remainder of the year.
The adjusted pretax profit for the first half of 2023 stood at £0.5 million ($0.6 million), marking an 88% decrease compared to the same period in 2022. Additionally, revenue experienced a 3% decline, amounting to £125.7 million, while net fee income dropped by 9% to £29.7 million.
According to Rhona Driggs, Chief Executive Officer of Empresaria Group, the market conditions have remained challenging since the second half of 2022 and have persisted throughout the first half of this year. Both client and candidate confidence continue to be low in most of their markets and sectors, hindering any significant or consistent signs of improvement.
Empresaria Group attributed its higher cost base compared to the previous year to inflation and increased headcount investments made in response to higher client demand during the first half of 2022. As they anticipate the challenging times to persist, the company plans to implement cost-cutting measures during the second half of the year.
Moving forward, Empresaria Group anticipates market conditions to continue impacting their business throughout the remainder of this year. However, they believe that underlying factors such as low unemployment levels and skill shortages will ultimately contribute to recovery once confidence returns.