Shares digital

Following a positive trading update by staffing specialists Empresaria (EMR:AIM), chairman Tony Martin bought 500,000 shares, upping his stake to 4.8 million, roughly 14.5% of the company. The update confirmed results would be ‘in line with market expectations’, with profits of £5.6 million and EPS of 9p, underlining transformation, into an international business. After acquiring a major business in Germany and smaller companies in Holland, Indonesia and Chile, the group now earns more than 60% of its net fee income outside the UK. The company is also benefiting from its past investment in fast-growing Asian economies such as India and China.

Trading is ‘ahead of expectations’ this January. Rapid growth is anticipated with the benefits of last year’s acquisitions. EPS is expected to be some 12p, giving a PE of under seven on the 80.5p share price. Earnings have risen from 2.9p a share in 2002 and the group ensures senior management has a stake in the business. Daniel Stewart, an independent broker, believes its ‘distinctive business model offers the potential for spectacular long-term growth’.

Shares says: An undervalued stock.