News Column

Impellam First-Half Profit, Revenue Driven By Strong UK Growth

July 30, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - Impellam Group PLC Wednesday said its profit and revenue rose in the first half of the year, buoyed by strong growth in the UK, its biggest market, particularly in its managed services business.

The employment agency reported a pretax profit of GBP14.0 million for the 26 weeks to June 27, up from GBP11.1 million a year earlier, as revenue rose to GBP612.3 million, from GBP591.7 million and its gross margin increased 70 basis points to 14.9%.

The company declared an interim dividend of 6.25 pence per share, up from 5.0 pence a year earlier.

Revenue growth was driven by its managed services division, which handles outsourced recruitment programmes for companies and public sector bodies, and some growth in its specialist staffing business.

The company acquired Career Teachers for GBP20.3 million in March, a business it said is performing well and contributed to both revenue and profit growth in the period.

The group said its UK business posted strong growth in profit and revenue, supported by an improving UK economy and increased demand in both the temporary and permanent staffing market.

In North America, Impellam said revenues and profits both fell, hit by lower sales activity on the back of adverse weather conditions in the region at the beginning of the year.

"The adverse weather in North America at the start of the year impacted the business and halted the run of seven quarters of year-on-year margin growth. Not only were our branch locations impacted, but many of our client's locations were closed with our associates unable to work," the company said.

Impellam said its Medac Healthcare Group business posted slightly lower revenue but strong profit growth. It said the business is seeing improving market conditions with volumes increasing, although demand in specific clinical areas continues to be challenging.

Its Carlisle Support Services business also saw a drop in revenue, as it exited from poor contracts, but profits in the business grew.

Impellam shares were up 1.6% at 474.92 pence before midday Wednesday.

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Source: Alliance News

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