TIDMIPEL
RNS Number : 5148X
Impellam Group plc
16 February 2012
REPORT FOR THE 52 WEEKS ENDED 30 DECEMBER 2011
Preliminary Results - Unaudited
Key Strategic Highlights
0 EBITDA increased 13.9% to GBP47.5 million (2010: GBP41.7
million)
0 Operating profit increased 13.4% to GBP34.8 million (2010:
GBP30.7 million)
0 Adjusted operating profit increased 16.2% to GBP38.7 million
(2010: GBP33.3 million)
0 Conversion of gross margin to operating profit increased to
19.1% (2010: 16.8%)
0 Basic earnings per share increased 15.6% to 54.0p (2010:
46.7p)
0 Net cash of GBP1.8 million at 30 December 2011 (31 December
2010: Net debt of GBP17.8 million)
* Adjusted operating profit excludes amortisation of client
relationships and non-recurring items
Cheryl Jones, Chairman commented:
"I am pleased to announce Impellam Group plc concluded 2011 with
a strong set of financial results whilst at the same time
completing several important milestones in support of repositioning
the Group's businesses. Our strategy is built on the premise of
'Unlocking the Value of the Impellam Group of Companies' for our
shareholders, our clients, management teams and employees.
First, the financial structuring of the Group has been critical
for the Company in that a highly leveraged historic debt position
had to be addressed. Conversion of margin to profit and through to
cash flows has been an imperative in this regard and remains so
going forward.
In 2011, the Group's operating profit increased by 13.4%,
aligned in part to an increase in the conversion ratio of 2.3%,
whilst EBITDA improved by 13.9% to GBP47.5 million on increased
revenues of 1.6%. Basic earnings per share improved by 15.6%. At
the year-end the Group was in a net cash position.
Execution of the strategy in 2010/2011 has allowed the Group to
repay in full and on the due date in 2011 its final obligations
under the GBP20 million guaranteed secured loan notes; and both of
the Group's UK and US financing facilities were also successfully
renewed during the year.
During the year, taking the opportunity of market conditions,
Impellam purchased 360,500 of its own shares at a cost of GBP1.2m.
On an annualised basis this provides shareholders with an
approximate 1% increase in value, as measured through earnings per
share. The Board will continue to look to purchase its own shares
going forward, as well as reviewing potential acquisitions where
they are accretive and fit with the Group's overall strategy.
Second, the strategy requires the Group to align its brands into
focused market-facing businesses. To support this divisional and
group strategy, two new holding companies have been established in
2011 to house the realigned Medacs Healthcare and Carlisle Support
Services brands.
The UK and US Staffing businesses have begun the realignment of
their brands to support accelerated development of evolving client
requirements for Managed Service Offerings and Client Innovation;
moreover, accelerated development of the Science, Engineering and
Technology related brand activities is also key. Restructuring of
these businesses is underway.
The accomplishments in 2011 were critical to the
transformational strategy of the Group. The primary trading markets
of the UK and US are anticipated to continue to show tough
conditions, but the Group remains focused in delivering the most
efficient and innovative service offerings. Establishing
consistency of reliability and a sustainable competitive advantage
are key elements for our current and prospective clients. The Group
will continue to develop in 2012 in all its key businesses and
markets.
The Board remains focussed on maximising shareholder value and
unlocking the value of the Impellam Group of Companies. This will
include the payment of dividends when appropriate.
To this end, Impellam will shortly be seeking shareholder and
court approval for a capital reorganisation. Contingent on such
approval, the Company will then have sufficient distributable
reserves to be in a position to pay a cash dividend starting with
the 2012 interims. The capital reorganisation will also provide for
other forms of capital transactions capable of delivering value to
the shareholders. Further details will be sent to shareholders in
due course."
Financial results for the fifty two weeks to 30 December
2011
The table below sets out the results for the Group by segment
for the fifty two weeks to 30 December 2011.
Group results Revenue Gross profit Operating profit
Unaudited Audited Unaudited Audited Unaudited Audited
GBPmillion 2011 2010 % change 2011 2010 % change 2011 2010
UK Staffing - Commercial 496.1 472.9 4.9 75.6 73.6 2.7 19.8 14.9
UK Staffing - Professional
& Technical 193.1 168.1 14.9 31.8 28.5 11.6 7.8 4.3
US Staffing 166.6 164.9 5.0* 34.7 34.9 3.3* 4.7 4.0
Medacs Healthcare
Group 186.8 202.4 (7.7) 27.9 32.0 (12.8) 9.1 11.6
Carlisle Support
Services 88.8 105.3 (15.7) 12.3 13.2 (6.8) 2.0 2.4
---------- -------- ---------- --------
1,131.4 1,113.6 1.6 182.3 182.2 0.1 43.4 37.2
---------- -------- ---------- -------- ---------- --------
Depreciation and amortisation 4.1 4.5
EBITDA 47.5 41.7
---------------------------- ---------- -------- --------- ---------- -------- --------- ---------- --------
Central costs (4.7) (3.9)
---------- --------
Operating profit before amortisation
of client relationships and non-recurring
items (Adjusted operating profit) 38.7 33.3
Amortisation of client relationships (2.0) (2.6)
Non-recurring items (1.9) -
Operating profit 34.8 30.7
---------- --------
* % change measured in local currency
Cash Flow, Debt and Net Assets
The Group generated GBP28.4 million of cash from operating
activities in the year (2010: GBP57.5 million). Days sales
outstanding (DSO) for the Group was 35.3 at 30 December 2011
compared to 36.0 at 31 December 2010.
Net debt reduced by GBP19.6 million to a net cash position of
GBP1.8 million as at 30 December 2011 (31 December 2010: GBP17.8
million net debt). In addition, the Group has outstanding letters
of credit drawn against its US borrowing facilities amounting to
GBP3.6 million (31 December 2010: GBP3.4 million).
At 30 December 2011, the Group had net assets of GBP129.3
million (31 December 2010: GBP106.8 million).
Business Segment Review
UK Staffing - Commercial:
In 2011, the Commercial Staffing segment included the key brands
of Blue Arrow Catering, Blue Arrow Staffing Solutions, Blue Arrow
Managed Services, ABC, Tate, Comensura and CMS. Many of the
traditional markets for these brands were under significant
economic pressure as demand for their traditional services declined
or remained depressed.
The overall strategy of the Group is to realign the brands to
the ever-changing market requirements. Technology programmes to
support AWR, Agency Workers Regulations, has also been implemented,
to provide efficiencies going forward whilst adhering to tight
compliance standards.
Focus on the evolving managed services market has supported much
of the revenue growth in these businesses. Both Tate and Blue Arrow
Catering had reduced revenues year-on-year, resulting from the
market-related conditions. The repositioning of these brands is
ongoing.
Overall, turnover increased a creditable 4.9% to GBP496.1
million for the year. EBITDA showed a reported 25% increase in 2011
to GBP22.5 million. Reported operating profit was GBP19.8 million
in 2011 compared to GBP14.9 million in 2010.
UK Staffing - Professional & Technical:
In 2011, the Professional and Technical Staffing segment
comprised the Science and Technology and Professional parts of the
business. As part of the overall strategy, during the year
initiatives were put in place to disaggregate the businesses and
re-evaluate the changing market requirements, so as to implement
service delivery efficiencies and drive strategic sales
processes.
Science and Technology sectors, through the SRG and Scom brands,
had a 16.3% increase in revenues reflecting the focus to this
sector and the higher demand for services. The Professional brands
achieved an 8.8% improvement in revenues as the client service
offering was expanded to support managed service requirements in
the market.
Overall this group of brands achieved an aggregate 14.9%
increase in turnover to GBP193.1 million. EBITDA increased by
GBP3.5 million in 2011 to GBP8.0 million; whilst operating profit
was GBP7.8 million in 2011 compared to GBP4.3 million in the prior
year.
US Staffing:
The US Staffing segment continued to expand its current client
base and to emphasise its managed service offerings to clients so
as to meet the evolving demand for strategic solutions in the
marketplace. During the year, Guidant Group was relocated to an
expanded headquarters and operational environment, allowing
increased scalable expertise in the managed services segment,
including expanded payroll service programmes to its client
base.
The US operations faced tough economic challenges, whilst
completing efficiency programmes planned for the end of the year so
as to continue to lower their cost of service delivery.
Turnover for the segment increased 5.0%* in the year to GBP166.6
million. EBITDA increased by GBP0.6 million to GBP5.1 million in
2011 and operating profit was GBP4.7 million compared to GBP4.0
million in 2010.
Medacs Healthcare Group:
Medacs Healthcare Group experienced an anticipated reduction in
demand in the doctors' staffing business in the UK during 2011.
During the year, orders for doctor assignments declined 14.5% and
average hours for these assignments declined 17.6%. By increasing
client density and fill rates, Medacs limited overall shrinkage in
invoiced doctor hours to 8.8%. The nursing and social care sectors
increased invoiced hours by 6.6% and 7.0% respectively.
In 2011, some GBP1.3 million was invested in the development of
an expanded contact centre designed to allow efficient
consolidation and increased specialisation in recruitment and
client service activities.
Medacs reported turnover of GBP186.8 million in 2011, a 7.7%
decline over the prior year. EBITDA and operating profit was GBP9.6
million and GBP9.1 million, respectively, compared to GBP12.0
million and GBP11.6 million, respectively, in the prior year.
Carlisle Support Services:
Carlisle Support Services' full year performance is a result of
the emphasis to deleverage the historic dependence on the retail
sector, initiatives to improve labour management and the timing of
a change in emphasis in the service portfolio to increasingly
complex client environments. Whilst certain key client
relationships were added in the year, the full impact of these will
not be seen until 2012.
During 2011, Carlisle relocated its corporate offices to further
consolidate its distribution network to five locations going to
four in 2012. New scheduling and payroll systems were installed in
the business for the 3,500 employee base. These technology changes,
combined with office consolidation, allow for further efficiencies
through scalability and specialisation of back-office and
operational support services, as well as allowing consolidation of
sales and account management staff into a more effective
environment.
Carlisle reported turnover of GBP88.8 million in 2011 compared
to GBP105.3 in the prior year. EBITDA declined by GBP0.4 million to
GBP2.3 million in 2011, whilst operating profit was GBP2.0 million
compared to GBP2.4 million in 2010.
Consolidated income statement
For the fifty two weeks ended 30 December 2011
Unaudited Audited
2011 2010
Notes GBPm GBPm
Revenue 2 1,131.4 1,113.6
Cost of sales (949.1) (931.4)
________ ________
Gross profit 182.3 182.2
Administrative expenses (147.5) (151.5)
________ ________
Operating profit 2 34.8 30.7
-------------------------------------------- ----- --------- --------
Operating profit before non-recurring items 36.7 30.7
Non-recurring items (1.9) -
________ ________
Operating profit 34.8 30.7
-------------------------------------------- ----- --------- --------
Finance income 0.4 -
Finance expense (2.3) (3.9)
________ ________
Profit before taxation 32.9 26.8
Taxation 3 (8.6) (5.7)
________ ________
Profit for the period 24.3 21.1
________ ________
Attributable to:
Owners of the parent Company 24.2 21.1
Non-controlling interest 0.1 -
________ ________
24.3 21.1
________ ________
Earnings per share 4 Pence Pence
Basic 54.0 46.7
Diluted 53.9 46.7
________ ________
Consolidated statement of comprehensive income
For the fifty two weeks ended 30 December 2011
Unaudited Audited
2011 2010
GBPm GBPm
Profit for the period 24.3 21.1
Other comprehensive income:
Currency translation differences - net of
tax (0.3) 0.3
________ ________
Total comprehensive income for the period 24.0 21.4
________ ________
Attributable to:
Owners of the parent Company 23.9 21.4
Non-controlling interest 0.1 -
________ ________
24.0 21.4
________ ________
Consolidated balance sheet
As at Unaudited Audited
30 December 31 December
2011 2010
GBPm GBPm
Non-current assets
Property, plant and equipment 5.8 5.9
Goodwill 60.1 60.1
Other intangible assets 48.1 49.4
Deferred tax asset 4.2 6.1
Financial assets 2.4 2.5
_______ _______
120.6 124.0
_______ _______
Current assets
Trade and other receivables 194.3 191.9
Cash and short-term deposits 22.3 13.9
_______ _______
216.6 205.8
_______ _______
Total assets 337.2 329.8
_______ _______
Current liabilities
Trade and other payables 161.9 163.8
Taxation liabilities 4.0 2.7
Short-term borrowings 20.5 31.7
Provisions 3.8 3.7
_______ _______
190.2 201.7
_______ _______
Net current assets 26.4 4.1
_______ _______
Non-current liabilities
Other payables 0.9 1.1
Provisions 5.6 7.8
Deferred tax liabilities 11.2 12.4
_______ _______
17.7 21.3
_______ _______
Total liabilities 207.9 223.0
_______ _______
Net assets 129.3 106.8
_______ _______
Consolidated balance sheet (continued)
Unaudited Audited
30 December 31 December
2011 2010
GBPm GBPm
Equity
Issued share capital 0.4 0.4
Share premium 15.5 15.5
_______ _______
15.9 15.9
Other reserves 92.7 93.0
Retained earnings/(deficit) 20.7 (2.3)
_______ _______
Total equity attributable to equity
holders of the parent Company 129.3 106.6
Non-controlling interest - 0.2
_______ _______
Total equity 129.3 106.8
_______ _______
Consolidated cash flow statement
For the fifty two weeks ended 30 December 2011
Unaudited Audited
2011 2010
Notes GBPm GBPm
Cash flows from operating activities
Cash generated by operations 5 34.9 61.6
Taxation paid (6.5) (4.1)
______ ______
Net cash generated by operating activities 28.4 57.5
______ ______
Cash flows from investing activities
Acquisition of subsidiary (net of cash acquired) - (0.6)
Non-controlling interest acquired (0.3) -
Purchase of property, plant and equipment (2.7) (2.4)
Purchase of intangible assets (2.5) (1.7)
Proceeds from disposal of property,
plant and equipment 0.2 1.0
Net movement in other financial assets - 1.0
Finance income received 0.4 -
______ ______
Net cash utilised by investing activities (4.9) (2.7)
______ ______
Cash flows from financing activities
Net movement in short-term borrowings 8.9 (44.6)
Repayment of guaranteed secured loan
notes (20.0) -
Purchase and cancellation of own shares (1.2) -
Capital element of finance lease payments (0.1) (0.2)
Finance expense paid (2.3) (3.6)
______ ______
Net cash outflow from financing activities (14.7) (48.4)
______ ______
Net increase in cash and equivalents 8.8 6.4
Opening cash and cash equivalents 13.9 6.5
Foreign exchange (losses)/gains on cash and
cash equivalents (0.4) 1.0
______ ______
Closing cash and cash equivalents 22.3 13.9
______ ______
Consolidated statement of changes in equity
For the fifty two weeks ended 30 December 2011
Unaudited
Total
share
capital
and share Other Retained Non-controlling
premium reserves earnings/(deficit) interest Total equity
GBPm GBPm GBPm GBPm GBPm
1 January 2011 15.9 93.0 (2.3) 0.2 106.8
______ ______ ______ ______ ______
Other comprehensive income - (0.3) - - (0.3)
Profit for the period - - 24.2 0.1 24.3
Purchase of treasury shares - - (1.2) - (1.2)
Non-controlling interest acquired - - - (0.3) (0.3)
______ ______ ______ ______ ______
30 December 2011 15.9 92.7 20.7 - 129.3
______ ______ ______ ______ ______
Notes to the financial statements
1 Basis of preparation
I. Statement of compliance
The financial statements presented in this financial report have
been prepared in accordance with International Financial Reporting
Standards (IFRS) and International Financial Reporting
Interpretations Committee (IFRIC) interpretations as endorsed by
the European Union that are applicable to the consolidated
financial statements for the period ended 30 December 2011.
II. Financial information
The financial information, which is unaudited, for the fifty two
weeks to 30 December 2011 does not constitute the statutory
accounts of the Group for the relevant period within the meaning of
section 434 of the Companies Act 2006. Such statutory accounts will
be completed in due course and delivered to the Registrar of
Companies.
III. Accounting policies, new IFRS and interpretations
The accounting policies used in this report are consistent with
those applied at December 2010. No other new and/or revised IFRS
and IFRIC publications that come into force in the period have had
any impact on the accounting policies, financial position or
performance of the Group.
2 Segment information
Fifty two weeks ended 30 December 2011 - Unaudited
UK Staffing Carlisle
UK Staffing -Professional Medacs Healthcare Support Group
- Commercial & Technical US Staffing Group Services total
GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 496.1 193.1 166.6 186.8 88.8 1,131.4
_______ _______ _______ _______ _______ _______
Segmental EBIT 19.8 7.8 4.7 9.1 2.0 43.4
_______ _______ _______ _______ _______
Unallocated
- Corporate
cost (4.7)
______
Operating profit
before amortisation
of client relationships
and non-recurring
items 38.7
Amortisation
of client relationships (2.0)
Non-recurring
items* (1.9)
______
Operating profit
before finance
costs and taxation 34.8
Finance costs
- net (1.9)
______
Profit before
taxation 32.9
Taxation charge (8.6)
______
Profit for
the period 24.3
______
*Non-recurring items comprise restructuring costs in Medacs
Healthcare Group and
certain corporate legal costs.
Fifty two weeks ended 31 December 2010 - Audited
UK Staffing Carlisle
UK Staffing -Professional Medacs Healthcare Support Group
- Commercial & Technical US Staffing Group Services total
GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 472.9 168.1 164.9 202.4 105.3 1,113.6
_______ _______ _______ _______ _______ _______
Segmental EBIT 14.9 4.3 4.0 11.6 2.4 37.2
_______ _______ _______ _______ _______
Unallocated
- Corporate
cost (3.9)
______
Operating profit
before amortisation
of client relationships 33.3
Amortisation
of client relationships (2.6)
______
Operating profit
before finance
costs and taxation 30.7
Finance costs
- net (3.9)
______
Profit before
taxation 26.8
Taxation charge (5.7)
______
Profit for
the period 21.1
______
3 Taxation
Unaudited Audited
2011 2010
Current income tax
UK corporation tax on results for the period 7.2 6.9
Adjustments in respect of previous periods (0.1) (1.4)
_______ _______
7.1 5.5
Foreign tax in the period 0.6 0.3
_______ _______
Total current income tax 7.7 5.8
Deferred tax charge/(credit) 0.9 (0.1)
_______ _______
Total tax charge in the income statement 8.6 5.7
_______ _______
4 Earnings per share
Basic earnings per share amounts are calculated by dividing the
profit for the period attributable to the equity holders of the
Company by the weighted average number of ordinary shares
outstanding during the period.
Diluted earnings per share amounts are calculated on the same
basis, but after adjusting the denominator for the effects of
dilutive options. The only potentially dilutive shares arise from
the share options issued by the Group under its share-based
compensation plans. There are 83,165 options outstanding as at the
balance sheet date (2010: 83,165).
The weighted average number of shares has been calculated for
the period from 1 January 2011 to 30 December 2011 as 44,949,595
(December 2010: 45,029,014) excluding the shares owned by The
Corporate Services Group Employee Share Trust.
5 Reconciliation of profit before tax to cash generated by operations
2011 2010
GBPm GBPm
Profit before taxation 32.9 26.8
Adjustments for:
Net interest charge 1.9 3.9
Depreciation and amortisation 6.3 8.3
Other items 0.1 0.1
______ ______
41.2 39.1
Increase in trade and other receivables (2.0) (1.2)
(Decrease)/increase in trade and other payables (2.0) 25.6
Decrease in provisions (2.3) (1.9)
______ ______
Cash generated by operations 34.9 61.6
______ ______
6 Additional cash flow information
1 January Foreign 30 December
2011 Cash flow exchange 2011
GBPm GBPm GBPm GBPm
Cash at bank and in hand 13.9 8.8 (0.4) 22.3
______ ______ ______ ______
Guaranteed secured loan note (20.0) 20.0 - -
Finance leases (0.1) 0.1 - -
Revolving credit (11.6) (8.9) - (20.5)
______ ______ ______ ______
(31.7) 11.2 - (20.5)
______ ______ ______ ______
(17.8) 20.0 (0.4) 1.8
______ ______ ______ _______
Enquiries: For further information please contact the
appropriate individual below.
Impellam Group plc
Cheryl Jones, Chairman Tel: 01582 692658
Andrew Burchall, Group Finance Director Tel: 01582 692658
Naomi Stuart, Marketing and Communications Tel: 01582 692624
Manager
Cenkos Securities plc (Nominated Advisor
and Broker to Impellam)
Nicholas Wells Adrian Hargrave Tel: 020 7397 8900
Tel: 020 7397 8900
Threadneedle Communications
John Coles Tel: 020 7653 9848
Note to Editors:
Impellam Group plc, traded on AIM (Symbol: IPEL), is a leading
provider of human capital services including innovative solutions
for the workforce, business process outsourcing (BPO), expertise in
technical, professional and medical talent, flexible workforce
consulting, staffing and recruitment. The Group conducts business
primarily in the UK and the US, with smaller operations in
Australia, Ireland, New Zealand and mainland Europe. The Group
employs nearly 6,000 people, including 2,200 managers and
consultants and more than 3,500 support services workers, across a
network of 230 branch and regional offices. The Group operates more
than 15 specialty brands across a broad range of staffing sectors
which are complemented by businesses in the outsourced support
services sector. Impellam Group is ranked 15th on the Staffing
Industry Analysts' 2010 Top Global Staffing Companies List.
Business Segment Brand alignment
UK Staffing - Commercial The UK Commercial Staffing brands provide specialised
temporary, permanent and contract recruitment
services in commercial staffing sector and include:
Blue Arrow (industrial/manufacturing, distribution/warehousing,
driving, office/call centre and catering/cleaning),
Tate (office/administrative /HR) and ABC Contract
Services (construction and telecoms). Additionally,
this segment provides business process outsourcing
(BPO), flexible workforce consulting and managed
services solutions for clients with complex contingent
workforces through the Carlisle Managed Solutions
(managed services) brands.
UK Staffing - Professional The UK Professional & Technical Staffing brands
& Technical are leading providers of permanent, contract
and temporary recruitment services, specialising
in the supply of trained and qualified professionals
to specific vertical industries. These brands
include: S*COM (IT/engineering/telecomms), SRG
(clinical/ scientific), Chadwick Nott (legal),
Hewitson Walker (finance/accounting), Celsian
Education (teachers/school support staff) and
Austin Benn (sales/marketing).
US Staffing The US Staffing brands provide temporary staffing
and permanent placement in both the commercial
and professional/technical sectors and include:
CORESTAFF Services and Leafstone (Call centre/customer
care, engineering, IT, light industrial, office/clerical,
professional, skilled trade and technical), S*COM
(IT/engineering/telecom), SRG Woolf (clinical/scientific),
InfoCurrent (information/records management and
library services). The Guidant Group provides
select BPO services including vendor-on-premise
programmes, payroll services and high-touch managed
services solutions for contingent workforces
that add control and intelligence to all the
"people" functions across a client's organisation.
Medacs Healthcare Medacs Healthcare Group is a leading specialist
Group provider of medical and social care staffing
and recruitment services, and provides innovative
outsourced healthcare solutions in both the public
and private sectors.
Carlisle Support Carlisle Support Services provides a outsourced
Services facilities services such as cleaning, security,
event support services, retail merchandising
services and interiors which allow clients to
control costs and focus on their core business
activities.
-END-
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UVVBRUSAUAAR
Impellam (LSE:IPEL)
Historical Stock Chart
From Feb 2025 to Mar 2025
Impellam (LSE:IPEL)
Historical Stock Chart
From Mar 2024 to Mar 2025
