Impellam Group plc announced integration of the Michigan-based Bartech business continues to proceed as planned and the business has performed well in 2016, with some notable new client wins and extensions of services. Delivery of the synergy cost benefits following the combination of the legacy Impellam and Bartech businesses are in line with management’s expectations. In addition, the weakening of the sterling benefited currency translation.

Impellam in December 2015 acquired Bartech Holding Corp. and its subsidiaries from private equity firm Sverica Capital Management LLC for an initial payment of $120 million.

Impellam noted disruption in the UK healthcare market and increased uncertainty following the UK referendum, but the board still expects to deliver 2016 EBITDA broadly in line with market expectations. On a group level, cash generation continues to be strong and the company expects net debt to be “materially” lower than at the end of 2015 and in line with market expectations.

In the UK, Impellam noted “mixed” trading performance. Some UK specialist businesses have seen weaker performance compared to the same period last year and government announcements regarding caps on locum pay rates and agency margins continued to impact performance within its UK doctors’ business. Managed services businesses continued to perform well, benefiting from 10 new client wins including Willis Tower Watson, Veolia, Johnson Matthey and Kings College Hospital and have a strong pipeline.

Impellam said its small Australian business also continued to perform well with sizeable new contracts wins in its Comensura business including New South Wales and New South Wales Justice.

“Whilst the board is pleased with the positive results from Impellam’s UK managed services, US and Australian businesses and the progress made in 2016 with the group’s strategic plan, it recognizes the prevailing uncertainty in the UK and will therefore continue to manage the business prudently, whilst investing in opportunities to drive profitable growth,” Impellam stated.