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UK – Impellam’s full-year growth boosted by acquisitions

03 March 2015

UK recruitment firm Impellam Group (IPEL: LSE) reported revenue for the 53 weeks ending 2 January 2015 of £1.3 billion, an increase of 9.7% compared with £1.2 billion during the 52 weeks ending 27 December 2013.

On a like-for-like basis, excluding the impact of acquisitions made during the period and the foreign currency impact of the US dollar, the company achieved revenue growth of 4.7%.

  53 weeks to 2 Jan 15 52 weeks to 27 Dec 14 Change
Revenue £1,323.4 million £1,206.2 million +9.7%
Gross Profit £193.9 million £173.3 million +11.9%
EBITDA £42.5 million £34.3 million +23.9%

Julia Robertson, Chief Executive Officer, commented: "I am pleased to report that the Group has delivered a strong financial performance this year in its staffing businesses and has made two excellent acquisitions in Lorien Resourcing & Career Teachers, both of which are performing in line with expectations and will be accretive in their first full year. In addition, we have completed the exit of onerous contracts in Carlisle Support Services and [are] on track for return to profitability."

Impellam Group has two primary revenue streams; Staffing Services and Carlisle Support Services. During 2014, Impellam Group completed the reorganisation of the company’s Staffing Services business into two distinct segments; Managed Services and Specialist Staffing.

The Managed Services segment manages the supply of temporary, permanent, and contract staff in large organisations. Multi-disciplinary Managed Service programmes are delivered through Impellam subsidiaries Guidant Group and Comensura. Single discipline programmes are delivered though the larger specialist brands, Medacs, Blue Arrow, and the newly acquired Lorien Resourcing.

Impellam’s Specialist Staffing businesses provide bespoke, expert-to-expert recruitment services in clearly defined talent pools for permanent, temporary, contract, and fixed price work.

Both Staffing Services businesses operate in the UK and North America.

Revenue increased in both the UK and North American Managed Services Business and the UK Specialist Staffing businesses, but were offset by a reduction in Specialist Staffing revenue in NA. Onerous contracts in the Carlisle Support Services business negatively impacted the company’s results. It was announced by Impellam in February 2014 that the company expects to lose up to £9.8 million over the next four years due to operationally complex and financially onerous contracts in the Carlisle business. 

  53 weeks to 02 Jan 15 52 weeks to 27 Dec 14 Change
Managed Services – UK £597.2 million £482.3 million +23.8%
Specialist Staffing – UK £544.0 million £502.5 million +8.3%
Managed Services - NA £95.3 million £88.2 million +13.6%
Specialist Staffing – NA £91.4 million £104.2 million -7.7%
Total Staffing Services 1,262.4 million £1,132.2 million +11.5%
Carlisle Support Services £61.0 million £74.0 million -17.6%
Total Revenue £1,323.4 million £1,206.2 million +9.7%

Looking forward, Impellam’s priorities for 2015 include; enhancing the company’s performance in North America, Asia Pacific, and other non-European geographies, refining the company’s portfolio through highly targeted M&A, and selective organic investment in key growth markets.  

In trading today, the company’s share price rose by 3.2% to £6.38, an increase of 59.5% compared with a year ago. Based on its current share price, the company has a market value of £311.2 million.