UK staffing firm Impellam Group plc (IPEL:LSE) reported revenue today for the six months ending 5 July 2019 of £1.13 billion, an increase of 2.5% and 1.4% on a like-for-like basis when compared to the previous year.

The group adopted the new accountancy standards ‘International Financial Reporting Standard 15 (IFRS 15) and IFRS 9 and 16 in 2019 and restated its 2018 comparative results for the IFRS 15 impact (£23.9 million increase in revenue, but no impact on gross profit, adjusted EBITDA or operating profit). The de-merger of Carlisle Support Services in 2019 has been treated as a discontinued operation and the 2018 results have been restated accordingly.

Adjusted EBITDA is up compared to the same period last year. The company said the impact of two previously reported customer losses in the US together with the implementation costs of significant customer wins in the UK and US has led to a decrease in adjusted EBITDA which was offset by an improvement due to the adoption of IFRS 16.

Operating profit was £9.4 million, a decrease of 38.6% and 45.3% on a like-for-like basis. In addition to the adjusted EBITDA shortfall this was impacted by the change made in December 2018 to the estimated economic useful life used for Brand Value amortisation (£3.2 million) and an increase in separately disclosed items from £0.4 million to £1.5 million.

During the period, Impellam demerged its subsidiary Carlisle Support Services Group, in order to focus on its managed services and specialist staffing portfolio.

Earlier this month Impellam announced that it acquired Flexy, a flexible staffing platform based in London.

Julia Robertson, Chief Executive Officer, commented, “Encouraged by this stable revenue and gross profit performance we are focused on transforming the group and creating a business model which further improves collaboration and reduces costs arising from duplication (IT systems, support services, back offices and recruitment process).

Impellam also announced a new segmental structure.

“The group has reviewed its segmental management and reporting structure alongside its strategic initiatives,” the company stated. The key segments are now Global Managed Services, Global Specialist Staffing, Regional Specialist Staffing and Healthcare. The new structure supports an increasingly integrated business model which will drive increased collaboration and reduce duplication and costs across the group.”

Global Managed Services includes the group’s core managed service providers Guidant Global and Comensura which operate in the UK, US, Europe and Australasia. Global Specialist Staffing includes the technology brands (Lorien, OneZeero and Scom) and life sciences brands (SRG and SRG Woolf) which operate across the UK, US and Europe. Regional Specialist Staffing includes the brands that are industry specialists in their own territory including Blue Arrow, Tate, Carbon60, Celsian, Career Teachers and Chadwick Nott in the UK and Bartech Staffing and Corestaff in the US. The Healthcare segment is Medacs Global Group which operates in the UK, Europe and Australasia.

Revenue by segment

Gross profit in Global Managed Services - UK, Europe, US and Australasia increased by 1.9% at actual exchange rates but was 0.8% down in like-for-like rates.

Within Global Specialist Staffing - UK, Europe and US, gross profit increased by 2.6% to £27.4 million (2018: £26.7 million) at actual exchange rates and 1.2% like-for-like.

At Regional Specialist Staffing - UK and US Gross profit was flat on 2018 at £47.1 million at actual exchange rates and a 1.6% decrease at like-for-like rates.

Gross profit at Healthcare – UK, Europe and Australasia increased by 3.4% to £24.0 million (2018: £23.2m) at actual exchange rates and 4.0% in like-for-like.

As of last trade Impellam Group traded at £440.00, down 0.45% on the day and 0.00% above its 52-week low of £440.00, set on 14 March 2019. Based on its current share price the company has a market value of £214.38 million.