FINANCIALS: Empresaria Group on track for record profit but could have been even better

Net migration: Shutterstock

International specialist staffing Empresaria Group says it is on track to deliver record profit before tax for 2017.

In a trading statement, it says it expects adjusted profit before tax “to be ahead of both the first half and prior year”. 

However, it says that its financial performance would have been even better had it not been for the effects of legislative changes in Germany kicking in earlier than expected. 

The new legislation introduced in April limits the time a worker can be on a temporary contract with a client to 18 months, as well as tightening equal pay regulations, and together these changes have had the effect of reducing margins. 

The company says it expects this impact to continue through 2018. However, it adds that it expects the legislative changes “will have a positive effect on the staffing market in Germany and so for our German business into the medium term”. The company highlights continuing weakness in its Middle East region as an additional drag on its performance. 

The company says the combined effect of these two factors is that adjusted full-year profit before tax “is now expected to be below market expectations”.

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