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Impellam Plc (LSE:IPEL) shares were up 25p to £3.10/share this morning following the release of the company’s preliminary results for FY2011. Trading remained light despite a very positive report.
The Report By The Numbers
Net profit was £24.2 million (an increase of £3.1 million over FY2010) on total revenues of £1.13 billion (an increase of £0.02 billion over FY2010).
Pre-tax profit was £32.9 million versus £26.8 million in 2010.
EBITDA was £47.5 million, compared to £41.7 million in the prior year.
The company had a net cash balance at year end of £1.8 million. The firm ended last year with a net debt of £17.8 million.
Basic earnings per share were 54.0p, up from 46.7p last year.
Report Highlights
Company Chairman Cheryl Jones said, “I am pleased to announce Impellam Group plc concluded 2011 with a strong set of financial results whilst at the same time completing several important milestones in support of repositioning the Group’s businesses. Our strategy is built on the premise of ‘Unlocking the Value of the Impellam Group of Companies’ for our shareholders, our clients, management teams and employees.”
She stressed that the company has been successfully implementing its strategy throughout 2011 and is continuing to realign and restructure the business in keeping with the strategic plan. Representative actions taken to date include the establishment of two holding companies to oversee the Medacs Healthcare and Carlisle Support Services entities. Accelerated development and restructuring of their Science, Engineering, and Technology branded services is already underway.
By Business Segment
UK Commercial Staffing
Impellam has been realigning their various brands to meet the market changes resulting from diminished demands. Operating profit from this sector was £19.8 million, up from £14.9 million in 2010.
UK Professional and Technical Staffing
Demand for Science and Technology support through the SRG and Scom brands increased during 2011 with an 16.3% increase in revenue. Demand for the Professional brands engineered an 8.8% increase in revenue.
US Staffing
The focus for 2011 was to expand the current client base, whilst implementing internal efficiency programs. Despite the challenge of a tough economy, the division turned in an operating profit of £4.7 million, an increase of £0.7 million over the previous year.
Medacs Healthcare Group
Medacs experienced an anticipated decline in demand for assignment of doctor staffing, with assignments down 14.5% and average hours per assignment down 17.6%. The nursing and social care segments experienced modest increases, not adequate to offset the decline on the doctor staffing side. Operating profit was £9.1 million, down from £11.6 million in 2010.
Carlisle Support Services
The positive impact of the strategic changes at Carlisle is not expected to be realised until 2012. Operating profit was £2.0 million compared to £2.4 million in the prior year.
Company Plans
The company will be seeking shareholder and court approval for a capital reorganisation. Contingent upon approval, Impellan will then have sufficient distributable reserves to be in be able to pay cash dividends starting this year. The company will continue the restructuring initiated in 2011 and will, according to Ms. Jones, continue to focus on “establishing consistency of reliability and sustainable competitive advantage” for all of its key businesses.
Company Spotlight
Impellam provides a variety of human capital services, including technical, professional and medical talent, flexible workforce consulting, staffing and recruitment, and process outsourcing. The company operates primarily in the UK and the US, but does have smaller operations located in Ireland, mainland Europe, Australia, and New Zealand. Impellam’s division place approximately 50,000 employees per week.
References
↑ Market Watch
↑ RTT News
↑ Company Report
↑ Impellam website – Official Company Information
