In its AGM statement today the board of Empresaria, the international specialist staffing group, says it has seen a 22% decline in net fee income (NFI) for the financial year to April.

Revenues, excluding discontinued operations, are 4% down on the same period, says the statement.

“These volume reductions are driven largely by reductions in permanent fee income levels (34% down at the end of April) with temporary revenues remaining consistent with the previous year.”

The board says the company has experienced declines in temporary revenues within Continental Europe, particularly Germany where it has exposure to the manufacturing sector markets.

However, property services operations in the UK, healthcare in Scandinavia and engineering in logistics in Germany have seen growth.

The statement continues: “To combat the reduction in group NFI we have been reducing overheads, closing or selling off a number of poorly performing branches and operations, and holding back on investment activity and capital expenditure.  

“There is evidence in recent weeks of increased market stability and in some cases of improved levels of confidence reflected in increased numbers of enquires, vacancies, job orders and in temporary staffing revenues.  

“Our business, due to seasonality, is heavily weighted towards the second half of the year. With a reduced cost base and assuming a continuation of these early signs of increased market stability, the board’s expectations for the full year remain unchanged.”