The company is essentially a recruitment agency, with operations in 20+ countries. The last results in March were not great. Profits fell, though revenue rose by nearly a third. we now have:
PER = 6
PtB = 0.9 (but intangibles very high)
PEG = 0.25
Yield = 2% (covered x3)
There is a new CEO in place.
Interims due on 22 August.
Overall I think this could be worth 100-120, so maybe 30% to be made here.
Yes, I did write about them at the interims when their performance was not bad. However, they have worsened since then. Incidentally, at that time, Stockopedia had them as a Superstock, now they are regarded as Contrarian! You can put your own interpretation on what that means!
Very poor when other recruiters have had a pretty good 2017. Lots of words, but little substance. At best neutral financials, at worst a bit down. Have sold, and managed to get out at the beginning of the market, still nursing a significant loss. On reflection, they have the worst of all worlds. Too many staff through their 'subsidiaries' and when you analyse the figures, the staff are not producing. Too much 'underlying' rubbish. Its unreal. All IMHO of course.
All the good things you would expect from EMR. Results in 6 weeks after period end, showing good financial discipline from a very diverse group. Acquisitions bedding in well. New office opened in Vietnam, growing market. SP has fallen off a high and IMHO represents a very good buying opportunity. Perhaps attention recently towards other recruiters, including one transferring to AIM, has taken the focus off EMR. As I say, A buying opportunity. PER under 10; PEG well under 1; regarded by Stockopedia as a Superstock.
To my mind, the day to day performance is not what is important ... The long run returns are what we should be looking for and this continues to look undervalued, generating strong returns on capital and expanding sensibly ... Hardman are there to inform people who have never looked at the company. But overall, brokers are to be ignored - this company will succeed or fail based on its business model and execution - not based on what a broker does or does not say from one week to the next - and emp appears to be going in right direction... We should all hold tight IMHO
It's a body representing 3000 plus member PIs aiming at looking after their interests through lobbying brokers, institutions and just about anyone who might listen to them. Well intentioned and some bright people are there. Look at sharesoc.org
Very good set of H1 results here today. It would be reasonable to expect a significant rerating coming up, particularly in light of the CEOs positive statement. Happy holder. They are presenting at Share Soc next week - anyone going?
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