International recruiter Empresaria Group has shown reduced revenues but has seen signs of improved trading conditions, according to a trading update for the year.

The update shows:

·     Full year revenues of £195m (2008: £208m), down 6%

·     Full year net fee income of £41m (2008: £51m), a decline of 20%  

·     Second half of the year shows a positive performance, reflecting stable or improved trading conditions in some markets (most notably UK and Germany), increasing contribution from smaller companies in developing economies and benefiting from cost savings

·     Full-year pre-exceptional earnings in line with market expectations

·     Strong cash generation in the second half of the year, while reported net debt fell by roughly £3m since June

·     Second half revenues from continuing businesses of £103m (H2 2008: £104m), a decrease of 1%

·     Second half net fee income from continuing businesses of £22m (H2 2008: £25m), falling 12%

The statement adds: “Increased demand for temporary staff, particularly within Germany and the UK at the end of 2009 and in early 2010, has resulted in a better than anticipated performance in December and an expectation of a stronger than anticipated performance in January. The group will benefit in 2010 from its international diversification strategy with only 36% of group net fee income generated directly from the UK economy.

“Over the longer term the board is confident that trends underlying specialist recruitment, which include liberalisation of labour markets, demographic changes, skill shortages and demand for flexible labour solutions, will provide exciting growth potential.”

Empresaria intends to announce its preliminary results for the year ended 31 December 2009 on?25 March.