Empresaria released a trading update on November 21st, lowering the expected growth rate for FY2017 PBT. This was due to the weak market conditions in the Mideast which were flagged in the H1 results, and also to changes in legislation in Germany. The German issue, also previously know, relates to rules restricting the length of tenure for contract workers (Empresaria’s main focus) and the introduction of equal pay after 9 months. These rules take full effect in 2018, but employers appear to be adjusting their behaviour ahead of implementation
Looking at the 5 year share price chart, there have been two big dips – H2 2014, and H1 2016. These proved to be good buying opportunities, and we argue that the current share price weakness should encourage investors to take a closer look at Empresaria.
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