Impellam Group plc - REPORT FOR 26 WEEKS
Impellam Group plc - REPORT FOR 26 WEEKS ENDED 2 JULY 2010
INTERIM RESULTS (UNAUDITED)
Turnover increased 8.7% to 544.4 million (June 2009: 500.9 million)
Gross profit increased 7.7% to 88.5 million (June 2009: 82.1 million)
Fees from permanent placements increased 14.3% to 9.0 million (June 2009: 7.9 million)
Permanent fees represented 10.2% of gross profit (June 2009: 9.6%)
Operating costs reduced 6.9% to 76.0 million (June 2009: 81.6 million)
Operating profit 12.5 million (June 2009: 0.5 million)
Conversion of gross profit into operating profit improved to 14.1% (June 2009: 0.6%)
Earnings per share of 17.9p (June 2009: loss 3.2p)
Debtor days improved to 35.4 days (December 2009: 39.2 days)
Cash generation from operations increased to 34.6million (June 2009: 9.5 million)
Net debt decreased by 30.4 million to 39.2 million as at 2 July 2010
Before amortisation of intangible assets and exceptional items
Operating costs reduced by 1.7% to 74.3 million (June 2009: 75.6 million)
Conversion of gross profit into operating profit improved to 16.0% (June 2009: 8.0%)
Operating profit 14.2 million (June 2009: 6.5 million)
Earnings per share of 21.8p (June 2009: 10.3p)
Cheryl Jones, Chairman, commented: "I am pleased to announce that Impellam Group plc ("Impellam" or "the Group") concluded its half year results in line with expectations.
The Group has maintained priority on key drivers of our plan which include leveraging our brands, further improving our process and technology environments, investing in service innovation and refining our growth strategy.
Continued focus on these priorities will allow the Group's brands to continue to reposition themselves within their respective competitive markets for the remainder of the year."
Business Segment Results:
- Healthcare Staffing: Turnover increased 25.7% to 101.6 million and gross profit increased by 22.3% to 15.9 million. Operating profit increased to 5.6 million.
- UK Staffing - Commercial: Turnover increased 10.5% to 221.0 million and gross profit increased by 8.1% to 34.7 million. Operating profit of the segment increased to 6.1 million.
- UK Staffing - Professional & Technical: Turnover declined 3.6% to 83.7 million and gross profit was broadly flat at 14.3 million. Operating profit increased to 2.1 million.
- US Staffing: Turnover increased 3.7%* to 86.3 million and gross profit increased by 1.9%* to 17.6 million. Operating profit of the segment was 1.8 million compared to breakeven in 2009.
- Support Services: Turnover increased 7.7% to 51.8 million and gross profit increased 20.0% to 6.0 million. Operating profit 0.8 million compared to a loss in 2010.
The Group generated 34.6 million of cash from operations in the first twenty-six weeks of the year (June 2009: 9.5 million).
Net debt reduced by 30.4 million to 39.2 million as at 2 July 2010 (31 December 2009: 69.6 million). In addition, the Group has outstanding letters of credit drawn against its US borrowing facilities amounting to 5.0 million (31 December 2009: 4.9 million or 5.2 million in constant currency).