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Impellam Group plc REPORT FOR THE 52 WEEKS ENDED 31 DECEMBER 2010

Impellam Group plc REPORT FOR THE 52 WEEKS ENDED 31 DECEMBER 2010
PRELIMINARY RESULTS (UNAUDITED)
Highlights:

Turnover increased 6.6% to 1,113.6 million (2009: 1,044.2 million)
Fees from permanent placements increased 18.4% to 18.7 million (2009: 15.8 million)
Conversion of gross profit into operating profit improved to 16.8% (2009: 6.0%)
Operating profit 30.7 million (2009: 10.0 million)
Cash generation from operating activities increased to 57.5 million (2009: 1.3 million)
Net debt decreased by 51.8 million to 17.8 million as at 31 December 2010
Basic earnings per share of 46.7p (2009: 23.9p)

Cheryl Jones, Chairman, commented:
"I am extremely pleased to announce that Impellam has produced a strong set of results during the first full year of trading under the Company's defined strategic initiatives.
Key components of the Group's strategic focus for 2010 included end-to-end operating efficiency initiatives, further brand rationalisation, controlled growth strategies and service innovation development for each selected market. As these initiatives developed, their alignment to the overall productivity and efficiency of the business resulted in improved profit and effective cash flow generation.
During 2010, the Group's turnover increased 6.6% to 1.1 billion, principally driven through the Healthcare Staffing and UK Commercial Staffing sectors.
Importantly, conversion of gross profit into operating profit improved over ten basis-points to 16.8% in 2010 from 6.0% in 2009. This improvement reflects the Group's planned approach towards efficiency measures and revenue quality initiatives across all segments.
Operating profit was 30.7 million in 2010, up from 10.0 million in 2009, with all business segments contributing to this performance.
The overall net cash generated from the Group's operations in 2010 was 57.5 million, which allowed net debt to be reduced to 17.8 million at the year-end.
I am also pleased to report that Impellam has recently extended its primary commercial banking facility through to February 2013, and the Company will repay, in full, its final obligations under the 20.0 million guaranteed secured loan notes on the due date in May 2011.
Impellam is now well-positioned to take advantage of market opportunities and improving economic conditions."
Business Segment Results:
- Healthcare Staffing: Turnover increased 13.1% to 202.4 million and gross profit increased by 13.5% to 32.0 million. Operating profit increased to 11.6 million.
- UK Staffing - Commercial: Turnover increased 11.3% to 472.9 million and gross profit increased by 9.5% to 73.6 million. Operating profit increased to 14.9 million.
- UK Staffing - Professional & Technical: Turnover declined 2.9% to 168.1 million and gross profit declined 1.4% to 28.5 million. Operating profit increased to 4.3 million.
- US Staffing: Turnover declined 0.6%* to 164.9 million and gross profit increased by 4.1%* to 34.9 million. Operating profit increased to 4.0 million.
- Support Services: Turnover increased 2.0% to 105.3 million and gross profit increased 37.5% to 13.2 million. Operating profit was 2.4 million compared to a loss in 2009.
The Group generated 57.5 million of cash from operating activities in the year (2009: 1.3 million).
Net debt reduced by 51.8 million to 17.8 million as at 31 December 2010 (31 December 2009: 69.6 million). In addition, the Group has outstanding letters of credit drawn against its US borrowing facilities amounting to 3.4 million (31 December 2009: 4.9 million).

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