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UK – Impellam to post lower profits despite higher sales

18 December 2012

UK recruiter Impellam reported on Tuesday that trading during the second half of the year has been stable with the firm expecting year-on-year revenue growth across all of its staffing businesses.  But due to pricing pressure within some business areas, the company expects a “small” fall in full year gross profit (net fee income).

The firm also reported restructuring charges of £5.5 million.  Operating profit before restructuring and share option charges are likely to be around £3.0 million lower than the prior year. 

Looking ahead, the firm anticipates better prospects: “Following an extensive restructuring of the Group, the cost base has been reduced which will deliver further benefits as we enter 2013.  This, coupled with contract wins and our bias towards temporary staffing relative to permanent placement, provides a degree of resilience to the Group's earnings and cash generation and we therefore expect to see a return to operating profit growth in 2013.”

Impellam announced that it is also considering the payment of a one-off special dividend of not less than £15.0 million. It first announced paying back cash dividends in February.

Impellam Group conducts business primarily in the UK and the US, with smaller operations in Australia, Ireland, New Zealand and mainland Europe. The Group employs around 6,000 people and is ranked 19th in Staffing Industry Analysts’ latest ranking of largest staffing firms in the world.


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