UK staffing firm Impellam Group plc (IPEL:LSE) reported revenue for the six months ended 29 June 2018 of £1.10 billion, an increase of 4.9% on a like-for-like basis compared to the previous year.

Gross profit for the group was impacted by the US managed service business which was hit by unfavourable exchange rate movements as well as the impact of three client losses in 2017.

Gross profit also decreased in the US Specialist Staffing division as well as US Group Supply as it was impacted by reduced volumes in the US automotive sector and candidate shortages. In the Specialist Staffing UK, Europe and Australasia division gross profit decreased by 5.5% to £65.6 million.

Revenue by segment was broken down as follows.

In Managed Services UK, Europe and Australasia gross profit increased by 13.8% to £33.9 million. Gross profit increased across all of the group’s UK Managed Services businesses. 

In Specialist Staffing UK, Europe and Australasia, gross profit decreased by 5.5% to £65.6 million.

US Managed Services gross profit decreased by £2.8 million to £21.5 million while gross profit decreased by £2.1 million to £14.5 million in US Specialist Staffing.

Julia Robertson, Chief Executive Officer, commented, "We have continued to work hard on our strategic priorities in 2018 where Virtuosity is now enabling us to manage our portfolio of investments with a radical improvement in oversight, driving pace, a reduction in cost and risk and increased returns. In addition, we have further improved our resilience by growing our Managed Services (59.4% of adjusted EBITDA up from 52.4% at H1 2017) and International businesses (50.5% of adjusted EBITDA up from 47.9% at H1 2017).”

“Guidant, Comensura and Lorien all delivered strong H1 performances with nine new wins including a new client relationship for Guidant with Whitbread plc,” Robertson said.

“In our Specialist Staffing businesses, UK private sector brands have performed ahead of 2017 despite the backdrop of uncertain markets. Group supply has increased by 6.2% (4.0% increase at reported exchange rates) to £560.8 million in H1,” Robertson said.

“In the UK, our Education and Healthcare businesses continued to experience challenges due to cost constraints in the public sector, the impact of IR35 and a shortage of candidates. Our other UK businesses have performed well with double digit adjusted EBITDA growth in Blue Arrow (Industrial, Office and Catering), Onezeero (IT), Tate (Secretarial) and Chadwick Nott (Legal),” Robertson said.

“In the US, Group Supply grew by 24% with the realisation of increasing synergy benefits from MSP accounts resulting from the Bartech acquisition,” Robertson said. “Gross profit has decreased by 4.7% (at constant currency rates), impacted by reduced volumes in the US automotive sector and candidate shortages. Growth in our Australian businesses, although relatively small, remains strong with gross profit up 35% and adjusted EBITDA more than double H1 2017.”

As of last trade Impellam Group traded at £465.00, up 1.09% on the day and 8.14% above its 52-week low of £430.00, set on 28 June 2018. Based on its current share price the company has a market value of £236.17 million.